American Express to Acquire BSB Bank & Trust Credit Card Portfolio; Cardholders to Receive APR - Annual Percentage Rate - Reduction.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 1, 2001

American Express Company and BSB Bank & Trust Company, the bank subsidiary of BSB Bancorp Inc., today announced that they have signed an agreement for American Express Centurion Bank to acquire the credit card portfolio of BSB Bank & Trust.

The portfolio of BSB Bank & Trust, a community bank serving the Southern Tier and Central regions of upstate New York, consists of nearly 7,000 active consumer and business accounts with receivables of approximately $11.2 million. This is the third bank credit card portfolio purchased by American Express in the past year.

With this agreement, American Express and BSB Bank & Trust have entered into a joint marketing program whereby American Express will issue and market BSB Bank & Trust branded American Express(R) Cards to the Bank's customers.

Current and future cardholders will be provided with a BSB Bank & Trust branded American Express Card with a variety of new benefits and services. To start, cardholders in good standing will receive an automatic reduction in their current APR. In addition, cardholders will be able to take advantage of American Express Services, including:

- 24-hour customer service,

- Car Rental Loss and Damage Insurance(1),

- Purchase Protection Plan which insures items purchased with the card from
accidental damage or theft(2),

- Buyer's Assurance Plan which extends the original manufacturer's warranty on
covered items for up to one additional year(3),

- Global Assist(R) Hotline which provides traveling Cardmembers with a variety
of travel information and 24-hour assistance

Howard Sharp, President and CEO of BSB Bank & Trust stated, "We are excited about the possibilities this partnership brings to our customers. American Express has a history of world class customer service and product innovation. This partnership will maintain our focus on excellent customer service and provide exciting new services to our customers."

Gilbert Ahye, Senior Vice President, Card Business Development of American Express stated, "With this BSB Bank & Trust agreement, we continue to expand our business with internal growth as well as the acquisition of high quality credit card portfolios from banks. We look forward to partnering with BSB Bank & Trust to provide superior value to our mutual customers."

The transfer of the credit card portfolio is expected to be completed in the first quarter of 2002 and BSB Bank & Trust customers will receive information on the card transfer and their new benefits shortly. As with all credit cards, cardholders will have the option of paying their balances in full or in monthly installments.

BSB Bank & Trust Company is a $2.1 billion dollar commercial bank headquartered in Binghamton, New York with 22 full service banking offices in Broome, Onondaga, Tioga, Chemung and Chenango counties in New York. The Bank offers a broad range of deposit and loan products as well as trust and investment services to area businesses and consumers.

American Express Centurion Bank is a subsidiary of American Express Company, a diversified worldwide travel, financial and network services company founded in 1850. American Express is a leader in charge and credit cards, Travelers Cheques, travel, financial planning investment products, insurance and international banking.

1 Car Rental Loss and Damage Insurance: Underwritten by AMEX

Assurance Company, Administrative Office, Green Bay, WI.

Coverage is subject to the terms, conditions and exclusions of

Policy AX0925

2 Purchase Protection Plan: Underwritten by AMEX Assurance

Company, Administrative Office, Green Bay, WI. Coverage is

subject to the terms, conditions and exclusions of Policy

AX0953

3 Buyer's Assurance Plan: Underwritten by AMEX Assurance

Company, Administrative Office, Green Bay, WI. Coverage is

subject to the terms, conditions and exclusions of Policy

AX0951