NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
Michael J. Chewens, CFO
607/337-6520

ATTENTION:  FINANCIAL/BUSINESS EDITORS

FOR IMMEDIATE RELEASE:     JANUARY 28, 2000

SPECIAL SHAREHOLDER MEETING SET FOR FEBRUARY 17, 2000

         NORWICH,  NY --- NBT Bancorp Inc. (NASDAQ  National Market:  NBTB), the
holding company for NBT Bank, N.A.,  announced today that the Board of Governors
of the  Federal  Reserve  System  and the State of  Pennsylvania  Department  of
Banking have all given clearance to NBT to proceed with its proposed merger with
Lake Ariel Bancorp,  Inc. (NASDAQ National Market:  LABN), the parent company of
LA Bank, N.A.
         In addition, the Securities and Exchange Commission has issued an order
of effectiveness to the registration statement of NBT covering the shares of NBT
stock to be issued to shareholders of Lake Ariel in the merger.
         NBT has  mailed  proxy  materials  to its  shareholders  detailing  the
proposed  merger.  A special meeting of NBT shareholders is scheduled to be held
on February 17, 2000, at 2:00 p.m. at the Howard Johnson,  75 North Broad Street
in Norwich, New York.
         Lake  Ariel  has  also  mailed  proxy  materials  to  its  shareholders
detailing the proposed merger. The Lake Ariel special meeting is scheduled to be
held on February 17, 2000, at 10:00 a.m. at the Holiday Inn - Scranton East, 200
Tique Street in Dunmore, Pennsylvania.
         On  December  8,  1999,  NBT Bancorp  Inc.  announced  the signing of a
definitive  agreement of merger with Pioneer  American  Holding  Company  Corp.,
parent company of Pioneer  American Bank, N.A. The merger is subject to approval
of each company's shareholders and of banking regulators. Pioneer American Bank,
N.A. will  ultimately be merged  together with LA Bank, with the combined entity
becoming the largest community bank headquartered in northeastern Pennsylvania.
         NBT Bank,  N.A., the wholly owned  subsidiary of NBT Bancorp Inc., is a
full service  commercial bank with total assets of  approximately  $1.4 billion.
The Bank has 36 branches in nine counties in central New York.  NBT Bancorp Inc.
and NBT Bank are  headquartered  in  Norwich,  NY,  where the Bank was formed in
1856.
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