- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE

ATTENTION: FINANCIAL AND BUSINESS EDITORS
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Contact: Kecia E. Funaro-Burton
                  Marketing Officer
                  NBT Bank, N. A.
                  607-337-6250

                                                              Pursuant  to  Rule
                                                              425    under   the
                                                              Securities  Act of
                                                              1933  and   deemed
                                                              filed  pursuant to
                                                              Rule 14a-12  under
                                                              the     Securities
                                                              Exchange   Act  of
                                                              1934.

                      NBT BANK OPENS NEW LOCATION IN ALBANY

     ALBANY, NY (July 11, 2000) - NBT Bank recently opened a commercial  banking
office in Albany at 441 New Karner Road.  The primary focus of this new location
is to serve the  commercial  banking needs of area  businesses.  A full range of
retail banking products and trust and investment services are also available.
     NBT Bank Vice  President  and Regional  Lending  Manager Ed Tomeck  stated,
"Bank  consolidations in the Capital Region have created a need for a commercial
lending institution with a strong community banking philosophy. NBT Bank has its
roots in  community  banking.  Our  commitment  to  quality  service  and  local
decision-making provides area businesses with an attractive new banking option."
     Vice  President  and Corporate  Banking  Officer Peter Marquis heads up NBT
Bank's  commercial  banking  operation  in  Albany.  Marquis  brings 20 years of
banking  experience to his position including six years with TrustCo Bank. He is
currently a director of the Saratoga  Care  Foundation  and serves as a director
and assistant treasurer of the Northeast Parent and Child Society.
     Daryl R. Forsythe, NBT Bank's chief executive officer,  commented,  "We are
excited to become a part of the banking scene in the Capital  Region.  Our entry
into this market represents a logical  expansion of our existing  franchise that
spans from Pennsylvania to the Canadian border." NBT Bank conducts business from
37 locations in ten Upstate New York counties  including three offices in nearby
Fulton County.
     NBT Bank and its parent  company,  NBT Bancorp Inc., are  headquartered  in
Norwich, New York. NBT Bancorp recently entered into a merger agreement with BSB


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Bancorp,  Inc. of Binghamton slated to close in the fourth quarter of this year.
This merger,  currently pending regulatory and stockholder approval, will create
a financial  services  holding company with pro forma assets of $4.8 billion and
three direct operating  subsidiaries,  including community banks in New York and
Pennsylvania and a financial  services company.

 O BSB Bank & Trust and NBT Bank, the companies' principal banking subsidiaries,
   will be combined to create the New York bank.

 O NBT Bancorp  recently  acquired  LA Bank and Pioneer  American Bank. Both
   headquartered in Northeastern Pennsylvania, these banks will be combined to
   form the new company's Pennsylvania bank.

 O NBT  Bancorp  created a  financial  services  company  in  September  1999 to
   expand  its menu of  financial  services  beyond traditional bank product
   offerings.

     Forsythe will serve as the chairman,  president and chief executive officer
of the combined  company.  He stated,  "This merger is a great strategic fit for
our companies.  We offer similar products and services, and the markets we serve
are contiguous.  By far, the most important  common ground we have is our shared
community banking  philosophy.  Bringing our successful  companies together will
create a solid  foundation  that will allow us to expand the  financial  service
options we offer and continue to deliver  high  quality  service to existing and
new customers."
     NBT Bancorp had assets totaling $1.4 billion at March 31, 2000.
Forward-Looking Information
     This news release contains statements  regarding the projected  performance
of NBT Bancorp,  Pioneer  American  Bank,  LA Bank and BSB Bancorp on a combined
basis.  These  statements  constitute  forward-looking  information  within  the
meaning of the Private Securities  Litigation Reform Act of 1995. Actual results
may differ materially from the projections  discussed in this release since such
projections  involve  significant  risks and  uncertainties.  Factors that might
cause such differences  include,  but are not limited to: competitive  pressures
among financial  institutions  increasing  significantly;  economic  conditions,
either  nationally  or locally in areas in which NBT Bancorp,  Pioneer  American
Bank, LA Bank and BSB Bancorp  conduct their  operations,  being less  favorable
than  expected;  the  cost and  effort  required  to  integrate  aspects  of the
operations of the companies  being more difficult  than expected;  expected cost
savings from the merger not being fully realized or realized within the expected
time frame; legislation or regulatory changes which adversely affect the ability
of the  combined  company  to conduct  its  current  or future  operations.  NBT


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disclaims any obligation to update any such factors or to publicly  announce the
result of any revisions to any of the forward-looking statements included herein
to reflect future events or developments.
     This press release may be deemed to be solicitation  material in respect of
the proposed merger of BSB Bancorp,  Inc.  ("BSB") with NBT Bancorp Inc. ("NBT")
pursuant to an Agreement  and Plan of Merger,  dated as of April 19,  2000,  and
amended as of May 17, 2000, by and between NBT and BSB (the "Agreement"). Filing
of this press release is being made in connection  with  Regulation of Takeovers
and Security Holder Communications  (Release No. 33-7760,  34-42055) promulgated
by the Securities and Exchange Commission ("SEC").
     NBT and its directors and executive  officers may be deemed to be
participants  in the  solicitation  of proxies  in  respect of the  transactions
contemplated by the Agreement.  These directors and executive  officers  include
the following: Daryl R. Forsythe, Michael J. Chewens, Martin A. Dietrich, Joe C.
Minor,  John  D.  Roberts,   Everett  A.  Gilmour,  J.  Peter  Chaplin,  Richard
Chojnowski,  Gene E. Goldenziel,  Peter B. Gregory,  William C. Gumble, Bruce D.
Howe,  Andrew S.  Kowalczyk,  Jr., Dan B. Marshman,  John G.  Martines,  John C.
Mitchell,  Joseph G. Nasser,  William L. Owens and Paul O. Stillman.  As of June
30, 2000,  these  directors and  executive  officers  beneficially  owned in the
aggregate 1,538,770 shares, or approximately  8.31%, of NBT's outstanding common
stock.  Additional information about the directors and executive officers of NBT
is included in NBT's proxy statement for its 2000 Annual Meeting of shareholders
dated April 3, 2000.
     In  connection  with the  proposed  merger,  NBT will  file  with the SEC a
registration  statement on SEC Form S-4. The registration statement will contain
a joint proxy  statement/prospectus,  which will describe the proposed merger of
NBT and BSB and the proposed terms and conditions of the merger. Stockholders of
NBT  are  encouraged  to  read  the  registration   statement  and  joint  proxy
statement/prospectus  because these documents will contain important information
about the merger.  After the  registration  statement  is filed with the SEC, it
will be  available  for free,  both on the SEC's  web site  (www.sec.gov)  or by
contacting  NBT Bancorp Inc., 52 South Broad  Street,  Norwich,  New York 13815,
Attention: John D. Roberts, telephone 607-337-6541.

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