EXHIBIT 99.1

FOR IMMEDIATE RELEASE	For More Information Contact:
	Mark Roberts
	Vice President Finance
	(413) 568-9141

WORONOCO BANCORP, INC. ANNOUNCES CASH DIVIDEND OF $0.2025

PER SHARE AND REPORTS QUARTERLY RESULTS

WESTFIELD, MA—April 21, 2005—Woronoco Bancorp, Inc. (the “Company”) (AMEX:WRO), the holding company for Woronoco Savings Bank (the “Bank”), reported net income of $776,000, or $0.21 per diluted share, in the first quarter of 2005 compared to $1.4 million, or $0.40 per diluted share, for the same quarter last year. The lower earnings were attributable in large part to the recognition of expenses totaling $766,000 related to the pending merger with Berkshire Hills Bancorp. Excluding the impact of merger-related charges, the results for the first quarter of 2005 reflect growth in average loans and core deposits, expansion in insurance commissions and lower provision for loan losses, somewhat offset by net interest margin compression, lower gains from loan sales and higher non-interest expenses.

Total assets fell $5.7 million, or 0.6%, to $912.6 million at March 31, 2005 from $918.3 million at December 31, 2004 primarily reflecting a decrease in securities available-for-sale, partially offset by growth in net loans. Securities available-for-sale declined $16.1 million, or 6.6%, mainly due to principal payments totaling $12.4 million and a $3.5 million decrease in the unrealized gain. Total net loans rose $9.1 million, or 1.5%, largely due to purchases of adjustable-rate residential mortgages and solid loan origination activity, partially offset by prepayments.

The Company announced a cash dividend of $0.2025 per share, payable on May 16, 2005 to shareholders of record as of the close of business on May 2, 2005.

“We are very pleased with the recent shareholder approval of our pending merger with Berkshire Hills Bancorp”, commented Cornelius D. Mahoney, Chairman, President and CEO. “While we continue to actively proceed with the merger, our core results demonstrate that Woronoco remains committed to executing its strategic plans.”

Financial highlights include:

• The Company increased its dividend 2.5% to $0.2025 per share in the first quarter of 2005 from $0.1975 in the first quarter of last year. The dividend yield is 2.36% based upon an annualized dividend of $0.81 per share and a closing stock price of $34.36 at March 31, 2005.

• Net loan growth for the three months ended March 31, 2005 was driven by loan origination volume ($32.6 million) and purchases of adjustable-rate mortgages ($16.8 million), offset by refinancings, prepayments and amortization of the existing portfolio ($39.9 million).

• Asset quality remained outstanding at quarter end with the non-performing assets and troubled debt restructurings-to-total assets ratio at 0.04%.

• At March 31, 2005, the allowance for loan losses-to-total loans was 0.58% and the allowance for loan losses-to-non-performing loans was 954%.

• The capital position at quarter end remains strong with an equity-to-assets ratio of 8.74%. The Company’s book value per share fell $0.76, or 3.6%, to $20.48 at March 31, 2005 from $21.24 at December 31, 2004 mainly due to a $2.3 million decrease in the net unrealized gain on securities available for sale in connection with rising market interest rates.

• The cost of deposits, excluding brokered deposits, declined 3 basis points to 1.25% in the first quarter of 2005 compared to 1.28% for the same period in 2004 primarily resulting from growth in lower-cost core deposit balances.

• Net interest margin compressed to 2.53% for the three months ended March 31, 2005 compared to 2.79% for the same period in 2004 largely attributable to significant levels of loan prepayments and refinancings and accelerated cash flows in the existing mortgage-backed securities portfolio. The proceeds from these activities were used to support loan growth and to purchase investment securities at lower yields.

Woronoco Bancorp, Inc. is a publicly owned savings and loan holding company and the parent corporation of Woronoco Savings Bank, a Massachusetts stock savings bank headquartered at 31 Court Street, Westfield, MA 01085. Woronoco Savings Bank provides a wide variety of financial products and services through its ten branch offices located in Hampden and Hampshire Counties in Western Massachusetts. Through its partnership with Infinex Financial Group, the Bank offers access to a full range of investment products, including stocks, bonds, mutual funds and annuities. The Bank’s subsidiary, the Woronoco Insurance Group, Inc., offers property and casualty insurance products and life insurance and group life, group health and accident insurance products for individuals and commercial clients. For more information regarding the Bank’s products and services, and for Woronoco Bancorp, Inc. investor-relations information, please visit our web site at www.woronoco.com.

Statements contained in this news release, which are not historical facts, are forward-looking statements that are defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in the documents filed by the Company with the Securities and Exchange Commission from time to time. Subject to applicable laws and regulations, the Company does not undertake – and specifically disclaims any obligation – to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Attached are consolidated balance sheets, consolidated statements of operations, and selected financial data and ratios. The condensed consolidated financial statements should be read in conjunction with the Company’s Form 10-K, which was filed on March 15, 2005.

WORONOCO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

	Unaudited March 31, 2005			December 31, 2004			Unaudited March 31, 2004
Assets
Cash and due from banks	$	19,262		$	16,861		$	18,050
Interest-bearing deposits		1,053			1,044			1,041
Federal funds sold		—			4,900			—
Cash and cash equivalents		20,315			22,805			19,091
Securities available for sale, at fair value		225,990			242,050			225,612
Federal Home Loan Bank stock, at cost		19,009			17,339			15,774
Loans:
Residential mortgages		448,561			439,113			371,647
Commercial mortgages		81,697			80,349			71,929
Consumer loans		92,907			92,597			88,891
Commercial loans		13,426			15,954			15,599
Total loans		636,591			628,013			548,066
Unadvanced loan funds		(13,760	)		(14,201	)		(4,744	)
Net deferred loan costs		847			802			805
Allowance for loan losses		(3,643	)		(3,651	)		(3,486	)
Loans, net		620,035			610,963			540,641
Premises and equipment, net		10,206			10,363			9,913
Goodwill and other intangible assets, net		3,215			3,221			1,823
Other assets		13,796			11,554			12,604
Total assets	$	912,566		$	918,295		$	825,458
Liabilities and Stockholders’ Equity
Deposits:
Demand	$	32,476		$	33,251		$	27,619
NOW		59,238			60,333			61,907
Money market		68,887			78,108			63,047
Savings		90,122			86,535			86,492
Brokered deposits		69,619			95,084			42,543
Certificates of deposit		123,881			124,544			130,945
Total deposits		444,223			477,855			412,553
Short-term borrowings		170,176			140,554			41,001
Long-term debt		210,577			212,528			283,420
Mortgagors’ escrow accounts		2,422			2,078			2,052
Accrued expenses and other liabilities		5,382			3,869			5,046
Total liabilities		832,780			836,884			744,072
Commitments and contingencies
Stockholders’ Equity:
Preferred stock ($.01 par value; 2,000,000 shares authorized; no shares issued and outstanding)		—			—			—
Common stock ($.01 par value; 16,000,000 shares authorized; 5,998,860 shares issued; shares outstanding: 3,895,557 at March 31, 2005, 3,833,709 at December 31, 2004 and 3,673,393 at March 31, 2004)		60			60			60
Additional paid-in capital		65,028			64,247			61,011
Unearned compensation		(3,482	)		(3,657	)		(2,858	)
Retained earnings		46,018			47,123			48,970
Accumulated other comprehensive income		484			2,793			4,812
Treasury stock, at cost (2,103,303 shares at March 31, 2005, 2,165,151 shares at December 31, 2004 and 2,325,467 at March 31, 2004)		(28,322	)		(29,155	)		(30,609	)
Total stockholders’ equity		79,786			81,411			81,386
Total liabilities and stockholders’ equity	$	912,566		$	918,295		$	825,458

WORONOCO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(In Thousands Except Per Share Amounts)

(Unaudited)

	Three Months Ended March 31,
	2005		2004
Interest and dividend income:
Loans, including fees	$	8,109	$	6,993
Interest and dividends on securities:
Taxable interest		1,924		1,987
Tax exempt interest		353		247
Dividends		606		514
Federal funds sold		29		4
Other		6		1
Total interest and dividend income		11,027		9,746
Interest expense:
Deposits		1,972		1,532
Borrowings		3,665		3,052
Total interest expense		5,637		4,584
Net interest and dividend income		5,390		5,162
Provision for loan losses		14		150
Net interest and dividend income, after provision for loan losses		5,376		5,012
Non-interest income:
Fee income		1,036		1,040
Insurance commissions		545		423
Gain on sales of loans, net		—		80
Other income		43		70
Total non-interest income		1,624		1,613
Non-interest expenses:
Salaries and employee benefits		2,837		2,784
Occupancy and equipment		676		545
Marketing		34		80
Professional services		336		271
Data processing		289		270
Merger-related		766		—
Other general and administrative		671		634
Total non-interest expenses		5,609		4,584
Income before income taxes		1,391		2,041
Provision for income taxes		615		608
Net income	$	776	$	1,433
Earnings per share:
Basic	$	0.21	$	0.42
Diluted	$	0.21	$	0.40
Weighted average shares outstanding:
Basic		3,641,898		3,390,398
Diluted		3,733,659		3,611,181

See accompanying notes to unaudited consolidated financial statements

WORONOCO BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA AND RATIOS

				Three Months Ended March 31,
				2005			2004
Earnings per share:
Basic				$	0.21		$	0.42
Diluted				$	0.21		$	0.40
Performance ratios:
Net interest margin					2.53	%		2.79	%
Return on average assets					0.34	%		0.72	%
Return on average equity					3.78	%		7.17	%
Non-interest income as a percentage of average assets					0.70	%		0.81	%
Non-interest expenses as a percentage of average assets					2.43	%		2.29	%
Average balance sheet (in thousands):
Investment securities (includes FHLB stock)				$	253,566		$	245,259
Loans, net					621,776			510,351
Total assets					923,813			799,108
Interest-bearing deposits					429,425			390,380
Borrowings					377,355			297,649
Stockholders’ equity					82,091			79,929
	At March 31,			At December 31,			At March 31,
	2005			2004			2004
Capital and asset quality data:
Book value per share (1)	$	20.48		$	21.24		$	22.16
Total equity to total assets		8.74	%		8.87	%		9.86	%
Total non-performing assets and troubled debt restructurings as a percentage of total assets		0.04	%		0.06	%		0.05	%
Allowance for loan losses as a percentage of total loans (2)		0.58	%		0.59	%		0.64	%
Allowance for loan losses as a percentage of non-performing loans and troubled debt restructurings		953.66	%		783.48	%		810.70	%
Banking offices at end of period		10			10			9

(1) Calculation based on shares outstanding of 3,895,557 at March 31, 2005, 3,833,709 at December 31, 2004 and 3,673,393 at March 31, 2004.

(2) Total loans includes loans, less unadvanced loan funds, plus deferred loan costs, net.