June 12, 2009

FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION

Bethlehem, Pa. Contact Joseph T. Svetik, President

610-691-2233

FIRST STAR BANCORP ANNOUNCES DIVIDEND SUSPENSION

Bethlehem, PA, June 12, 2009. First Star Bancorp, Inc. (the “Company”) announced at the Company’s May 26, 2009 Board Meeting the Board of Directors decided to omit the payment of cash dividends on common stock for the current quarter. The Board took into account various factors, and determined that the action is appropriate because of the current economic downturn and the need to conserve capital.

The Board recognizes the impact this may have on shareholders. The economic cycle that we are experiencing is creating challenges for all financial institutions. The Board believes that this action is prudent and ultimately in the best long term interest of shareholders in order to preserve the Company’s strong level of capital. Management and the Board are committed to effectively manage credit risk and preserve adequate levels of capital and liquidity in the current economic environment. The payment of future dividends will continue to be evaluated on a quarterly basis.

First Star Bancorp, Inc. is the holding company for First Star Bank which serves the Lehigh Valley through its main office in Bethlehem and branch offices in Alburtis, Allentown, Bath, Nazareth, Palmer Township, New Tripoli and Wind Gap. Deposits at First Star Savings Bank are insured up to the legal maximum (generally, $250,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC).

This news release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, changes in deposit flows and changes in the quality or composition of the Company’s loan or investment portfolios. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.