Exhibit 99.1




Peoples State Bank Announces New Financial Services Office and Headquarters

Wausau, Wisconsin - Peoples State Bank (Peoples), subsidiary of PSB Holdings,
Inc., announced today a new regional financial services office and
administrative headquarters will be constructed on property adjacent to the
existing Wausau main office location.  Construction of the 32,000 square foot
office and drive-through canopy is anticipated to begin in August with
completion by the end of the second quarter 2004.  The existing Wausau main
office which has been used since Peoples opened in 1962 and as most recently
expanded during 1992 will be razed.  Building project costs including necessary
furniture, fixtures, and equipment are estimated to be $4.4 million.   Annual
depreciation expense after this investment in fixed assets and equipment is
estimated to increase $165,000 ($100,000 after income tax benefits).

Peoples is a community bank founded in 1962 holding over $370 million in total
assets.  The bank has a network of 7 offices throughout Central and Northern
Wisconsin providing financial services to thousands of individuals and business
owners.  PSB Holdings, Inc. is publicly owned and traded under stock symbol
PSBQ.OB.

Certain matters discussed in this news release, including those relating to
expansion projects and anticipated future expense are forward-looking
statements and are made pursuant to the safe harbor provisions of the
Securities Reform Act of 1995.  Such statements involve risks and uncertainties
which may cause results to differ materially from those set forth in this
release.  Among other things, these risks and uncertainties include the
strength of the economy, the effects of government policies, including, in
particular, interest rate policies, and other risk and assumptions described
under "Cautionary Statement Regarding Forward Looking Information" in Item 1 of
the Company's Form 10-K for the year ended  December 31, 2002.  The Company
assumes no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.