GERMAN AMERICAN BANCORP

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp

Kenneth L Sendelweck, Secretary/Treasurer of German American Bancorp

(812) 482-1314

Page 1 of 2

JASPER, INDIANA APRIL 27, 2005 GERMAN AMERICAN BANCORP REPORTS 24% INCREASE IN EARNINGS AND DECLARES QUARTERLY CASH DIVIDEND

German American Bancorp (NASDAQ: GABC) announced today that its first quarter earnings increased by 24% over last year’s first quarter results, achieving the highest level of quarterly net income since the first quarter of 2003 and continuing the previously reported trend of strong performance improvement.

The Company’s net income for the quarter was $2,411,000, or $0.22 per share, comparing very favorably to and increasing by $459,000 over the $1,952,000, or $0.18 per share reported in the first quarter of 2004.

The comparison of the two periods was positively impacted by improvements in both the Company’s net interest income and non-interest income. Net interest income increased by $521,000, or 7%, in the current year’s first quarter over that recorded in the same period last year.

Non-interest income increased by $593,000 during 2005 compared to 2004, or approximately 20%. Within the Company’s sources of non-interest related revenue, insurance revenues increased by 10%, trust and investment product fees increased by 24%, and net gains on the sales of loans improved by nearly 30%. The comparison of non-interest income was also positively impacted by recording in the first quarter of 2005 a $267,000 recovery of previous mortgage servicing rights impairment; while during the first quarter of 2004, the Company recorded a $117,000 mortgage servicing rights impairment charge.

Commenting on the Company's strong first quarter results, Mark A. Schroeder, German American President & CEO, stated, “We are extremely pleased that the operating fundamentals on which we have remained steadfastly focused during recent quarters have culminated into the level of financial performance that we are reporting for the first quarter of 2005. As we have stated in a number of our previous announcements, German American has, throughout the recent years’ historically low levels of interest rates, maintained a long-term perspective and we’ve positioned the Company to be poised to take advantage of the opportunities that we believed would occur in a stronger and more normal economic environment. It is extremely gratifying to see our shareholders now reap the rewards of these efforts in terms of an increase in net income and earnings per share growth.”

GERMAN AMERICAN BANCORP

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp

Kenneth L Sendelweck, Secretary/Treasurer of German American Bancorp

(812) 482-1314

Page 2 of 2

The Company also announced that its Board had declared a regular quarterly cash dividend of $0.14 per share which will be payable on May 20, 2005 to shareholders of record as of May 10, 2005.

German American Bancorp is a financial services holding company based in Jasper, Indiana. The Company’s Common Stock is traded on NASDAQ’s National Market System under the symbol GABC. The Company operates five affiliated community banks with 26 retail banking offices in the eight contiguous Southwestern Indiana counties of Daviess, Dubois, Gibson, Knox, Martin, Perry, Pike, and Spencer. The Company also operates German American Financial Advisors & Trust Company, a trust, brokerage and financial planning subsidiary operating from the banking offices of the bank subsidiaries and German American Insurance, Inc., a full-line property and casualty insurance subsidiary with five independent insurance offices throughout its market area. The Company’s lines of business include retail and commercial banking, mortgage banking, comprehensive wealth management, full service brokerage and trust administration, title insurance, and a full range of personal and corporate insurance products.

Forward-Looking Statements

The Company’s statements in this press release regarding its financial performance may be deemed to include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Changes in the Company’s net interest income and net interest margin may vary materially from those that are presently expected, if interest rates should decline or not increase. Other factors that could cause net interest income, net interest margin and earnings to vary from those that are expected, or those that have historically been achieved in recent periods, include the effects of changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management strategies or of business initiatives and business strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; changes in general economic conditions, either nationally or regionally, resulting in, among other things, credit quality deterioration; capital management activities; actions of the Federal Reserve Board; changes in accounting principles and interpretations; and legislative and regulatory actions and reforms. These forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to update any such forward-looking statement to reflect events or circumstances that occur after the date hereof.

GERMAN AMERICAN BANCORP
(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets
	March 31,
	2005			2004
ASSETS
Cash and Due from Banks	$	18,951		$	23,939
Short-term Investments		5,533			11,075
Investment Securities		200,375			208,831
Loans Held-for-Sale		3,517			651
Loans, Net of Unearned Income		619,497			608,497
Allowance for Loan Losses		(8,968	)		(8,436	)
Net Loans		610,529			600,061
Stock in FHLB and Other        Restricted Stock		13,686			13,106
Premises and Equipment		19,708			21,502
Other Assets		40,173			38,924
TOTAL ASSETS	$	912,472		$	918,089
LIABILITIES
Non-interest-bearing Demand Deposits	$	122,873		$	114,692
Interest-bearing Demand, Savings, and
Money Market Accounts		294,282			271,982
Time Deposits		304,286			337,572
Total Deposits		721,441			724,246
Borrowings		96,630			98,425
Other Liabilities		11,287			11,242
TOTAL LIABILITIES		829,358			833,913
SHAREHOLDERS' EQUITY
Common Stock and Surplus		77,347			78,694
Retained Earnings		6,664			4,846
Accumulated Other        Comprehensive Income/(Loss)		(897	)		636
TOTAL SHAREHOLDERS' EQUITY		83,114			84,176
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	912,472		$	918,089
BOOK VALUE PER SHARE	$	7.64		$	7.69
END OF PERIOD SHARES OUTSTANDING		10,880,948			10,940,803

Consolidated Statements of Income
	Three Months Ended March 31,
	2005		2004
INTEREST INCOME
Interest and Fees on Loans	$	9,914	$	9,705
Interest on Short-term Investments		87		28
Interest and Dividends on Investment Securities		2,003		2,043
TOTAL INTEREST INCOME		12,004		11,776
INTEREST EXPENSE
Interest on Deposits		2,889		3,133
Interest on Borrowings		1,116		1,165
TOTAL INTEREST EXPENSE		4,005		4,298
Net Interest Income		7,999		7,478
Provision for Loan Losses		482		402
Net Interest Income after Provision
for Loan Losses		7,517		7,076
NON-INTEREST INCOME
Other Operating Income		3,405		2,861
Net Gain on Sales of Loans and Related Assets		236		182
Net Gain on Securities		---		5
TOTAL NON-INTEREST INCOME		3,641		3,048
NON-INTEREST EXPENSE
Salaries and Benefits		4,596		4,615
Other Operating Expenses		3,342		3,235
TOTAL NON-INTEREST EXPENSE		7,938		7,850
Income before Income Taxes		3,220		2,274
Income Tax Expense		809		322
NET INCOME	$	2,411	$	1,952
EARNINGS PER SHARE & DILUTED   EARNINGS PER SHARE	$	0.22	$	0.18
WEIGHTED AVERAGE SHARES   OUTSTANDING:
Basic		10,894,953		10,936,799
Diluted		10,911,363		10,976,988