City Savings Financial Corporation Announces Dividend and Cost Cutting Measures.

MICHIGAN CITY, Ind. -- City Savings Financial Corporation (OTCBB:CSFC), an Indiana corporation which is the holding company for City Savings Bank, each based in Michigan City, Indiana, announced that on June 14, 2006, City Savings Financial Corporation declared a semi-annual cash dividend of $.15 on each share of its Common Stock. The dividend is payable on July 6, 2006, to the holders of record on June 24, 2006.

The Company is also announcing today that it is implementing a comprehensive cost cutting program that management anticipates will result in annual cost savings of approximately $300,000 - $350,000 beginning July 1, 2006. The cost savings will be achieved through staff cuts, changes made to compensation plans for key executives, a reduction in Board of Director fees, and planned cuts in other non-interest expense items. The staff cuts which have already been implemented will result in a pretax charge to earnings of approximately $85,000 for the quarter ended June 30, 2006.

City Savings Bank conducts business from three full-service offices located in Rolling Prairie, Chesterton and Michigan City, Indiana with the main office located in Michigan City. The Bank also has a loan origination office in Crown Point, Indiana.

Statements contained in this news release that are forward-looking are subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in the City Savings Financial Corporation's forward-looking statements.