FOR IMMEDIATE RELEASE

  For Additional Information Contact:
  David B. Barbour, President and Chief Executive Officer
  Lisah M. Frazier, Senior Vice President, Treasurer and Chief Financial Officer
  (606) 325-4789
  Fax (606) 324-1307
  www.bank-anywhere.com

  CLASSIC BANCSHARES, INC. REPORTS A 27% INCREASE IN ANNUAL EARNINGS PER SHARE
                 AND SUBSTANTIAL GROWTH FOR THE 2000 FISCAL YEAR

         Ashland, Kentucky, -- May 30, 2000 -- Classic Bancshares,  Inc. (NASDAQ
- CLAS)  reported  adjusted  cash net income  (which  excludes  amortization  of
goodwill) of $346,000 for the fourth  quarter  ended March 31, 2000  compared to
adjusted cash net income of $276,000 for the same period in 1999.  Adjusted cash
earnings per share were $.30 for the three months ended March 31, 2000  compared
to $.23 for the same  period in 1999.  Adjusted  cash net  income for the twelve
months  ended March 31, 2000 was $1.3  million  compared to $1.0 million for the
same period in 1999.  Adjusted cash earnings per share were $1.13 for the twelve
months ended March 31, 2000 compared to $.82 for the same period in 1999.

         Net income for the fourth quarter ended March 31, 2000 was $279,000, or
$.24 per diluted share  compared to $246,000,  or $.20 per diluted share for the
same period in 1999.  Net income for the twelve  months ended March 31, 2000 was
$1.1  million,  or $.92 per  diluted  share  compared to  $885,000,  or $.72 per
diluted share for the same period in 1999.

         Classic  Bancshares' assets increased $32.3 million from $142.7 million
at  March  31,  1999 to  $175.0  million  at March  31,  2000  primarily  due to
significant  internal  growth.  The  remainder  of the  increase  was due to the
acquisition  of  Citizens  Bank,  Grayson on May 14,  1999.  At the close of the
transaction,  Citizens Bank,  Grayson was merged with and into Classic Bank with
Classic Bank as the surviving  institution.  The  transaction was valued at $4.5
million and was accounted for under the purchase  method of  accounting.  On the
date of closing,  Citizens had total assets of  approximately  $13.4 million and
total deposits of $12.0 million. In connection with the acquisition, the Company
recorded $3.1 million in goodwill.

         Loans  increased  $30.3 million from $97.5 million at March 31, 1999 to
$127.8 million at March 31, 2000 with $21.3 million of the increase attributable
to internal  growth  primarily in the areas of commercial  mortgage,  commercial
business,  and consumer loans and $9.0 million attributable to loans acquired in
the Citizens  Bank  transaction.  Deposits  increased  $17.2 million from $117.7
million at March 31, 1999 to $134.9 million at March 31, 2000 with $12.0 million
of the  increase  attributable  to the  acquisition  of Citizens  Bank while the
remaining  increase was  attributable to aggressive  marketing and sales efforts
and the opening of two additional banking offices during fiscal 1999.

         Asset quality remained strong as total non-performing assets was .6% of
total assets at March 31, 2000  compared to .7% at March 31,  1999.  The Company
recorded a provision  for loan losses of $223,000 for the twelve  month  period,
recorded an allowance of $506,000 from the  acquisition  of Citizens and had net
charge-offs  of $270,000 for the twelve  month period  resulting in an allowance
for loan losses of $1.3  million at March 31, 2000.  The  allowance at March 31,
2000 was equal to 169% of total  non-performing  loans,  123% of  non-performing
assets and 1.0% of total loans receivable.

         President and Chief  Executive  Officer,  David B. Barbour stated that,
"We are extremely excited that our community and relationship banking strategies
yielded  double  digit  annual  increases in total  revenues,  loans,  deposits,
earnings and  earnings  per share.  Our  increases  in  non-interest  income and
continued  improvement of our net interest margin  positions the Company for the
future   notwithstanding   significant   fluctuations   in  the  interest   rate
environment."



<PAGE>



         Net interest income  increased  $275,000 to $1.6 million for the fourth
quarter  ended March 31, 2000  compared to $1.3  million for the fourth  quarter
ended March 31,  1999.  The net interest  margin was 4.2% for the quarter  ended
March 31, 2000 and March 31, 1999. Net interest income increased $1.2 million to
$6.0 million for the twelve months ended March 31, 2000 compared to $4.8 million
for the same period in 1999. The net interest  margin  increased to 4.3% for the
twelve months ended March 31, 2000 compared to 4.1% for the same period in 1999.
The increase for the three and twelve month period was due to an increase in the
volume of interest-earning assets and interest-bearing  liabilities coupled with
an increase in higher  yielding,  non-mortgage  loans,  such as  commercial  and
consumer  loans,  and a reduction  in the cost of funds  through  the  continued
increase  in lower  cost  non-certificate,  transaction  accounts  as a  funding
source.

         Non-interest  income was $223,000 for the quarter  ended March 31, 2000
compared to $182,000 for the quarter ended March 31, 1999.  Non-interest  income
was $895,000 for the twelve months ended March 31, 2000 compared to $675,000 for
the twelve months ended March 31, 1999.  Non-interest income increased primarily
due to an increase in fees and service charges on deposit accounts. The increase
in fees and  service  charges on  deposits  is the result of  increased  product
offerings, an increased deposit base and aggressive pricing strategies.

         Non-interest  expense  for the  quarter  ended  March 31, 2000 was $1.4
million  compared  to $1.1  million  for  the  quarter  ended  March  31,  1999.
Non-interest expense was $5.4 million for the twelve months ended March 31, 2000
compared  to $4.3  million for the same  period in 1999.  Non-interest  expenses
increased  for the period due  primarily to the  increased  costs  related to an
additional banking office as a result of the acquisition of Citizens Bank and an
increase  in  goodwill  amortization  from the  acquisition  of  Citizens  Bank.
Non-interest expenses also increased due to an increase in employee salaries and
benefits  due to an increase in the net number of  employees  and an increase in
other general and  administrative  expenses in order to facilitate the growth of
the Company.

         Stockholders'  equity was $19.0  million at March 31, 2000  compared to
$20.3 million at March 31, 1999.

         Classic Bancshares,  Inc. is headquartered in Ashland, Kentucky and has
two subsidiaries,  Classic Bank and First National Bank of Paintsville.  Classic
Bank operates at 344  Seventeenth  Street,  Ashland,  Kentucky with three branch
offices  located in Boyd,  Greenup and Carter  counties.  First National Bank of
Paintsville operates at 240 Main Street,  Paintsville,  Kentucky with one branch
office located in Johnson County.

         When used in this press release,  the words or phrases "should result,"
"will likely  result",  "are expected to", "will  continue",  "is  anticipated",
"estimate",   "project"  or  similar   expressions   are  intended  to  identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995. Such statements are subject to certain risks and
uncertainties,  including changes in economic  condition in the Company's market
area,  changes in  policies by  regulatory  agencies,  fluctuations  in interest
rates, demand for loans in the Company's market area and competition, that could
cause actual results to differ  materially  from  historical  earnings and those
presently anticipated or projected. The Company wishes to caution readers not to
place undue reliance on such forward-looking statements,  which speak only as of
the date made.  The Company  wishes to advise  readers  that the factors  listed
could affect the Company's  financial  performance and could cause the Company's
actual  results for future  periods to differ  materially  from any  opinions or
statements expressed with respect to future periods in any current statements.

         The  Company   does  not   undertake-and   specifically   declines  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.


<PAGE>




                             SELECTED FINANCIAL DATA


     The  following  table  sets  forth  selected   financial  data  of  Classic
Bancshares,  Inc.  as of March 31, 2000 and March 31, 1999 and for the three and
twelve months ended March 31, 2000 and 1999.
<TABLE>

                                                                March 31        March 31
                                                                  2000            1999
                                                                  ----            ----
Selected Financial Condition Data:                                    (In Thousands)
----------------------------------
<S>                                                            <C>             <C>
Total Assets                                                   $175,254         $142,739
Cash and other interest bearing deposits
   with other financial institutions                              5,254            4,486
Loans receivable, net                                           127,808           97,527
Investment Securities:
         Available for Sale                                      25,135           26,526
Mortgage-backed securities:
         Available for Sale                                       3,230            4,479
Goodwill                                                          5,809            2,779
Deposits                                                        134,897          117,732
Federal funds purchased and securities sold under
         Agreement to repurchase                                  2,688            2,187
FHLB advances                                                    17,075              388
Stockholders' Equity, subject to certain restrictions            18,999           20,289
</TABLE>



<TABLE>



                                                            Three Months Ended    Twelve Months Ended
                                                                 March 31,             March 31,
                                                                 --------              --------
                                                            2000          1999    2000           1999
                                                            ----          ----    ----           ----
Selected Operations Data:
------------------------                                                     (In Thousands)
 <S>                                                        <C>            <C>    <C>            <C>
Total interest income                                       $3,154        $2,489  $11,941        $9,822
Total interest expense                                       1,604         1,214    5,892         4,979
                                                       -----------     --------- ---------    ----------
  Net interest income                                        1,550         1,275    6,049         4,843
Provision for loan losses                                       63            35      223           100
                                                       ------------    --------- ----------   ----------
  Net interest income after provision                        1,487         1,240    5,826         4,743
       for losses on loans                             ------------    --------- ----------   ----------
Fees and service charges                                       184           119      703           487
(Loss) gain on sale of securities                              ---           ---       (3)            4
Other non-interest income                                       39            63      195           184
                                                       ------------    --------- ---------    ----------
         Total non-interest income                             223           182      895           675
         Total non-interest expense                          1,360         1,140    5,359         4,295
                                                       ------------    --------- ---------    ----------
Income before income taxes                                     350           282    1,362         1,123
Income tax expense (benefit)                                    71            36      292           238
                                                       ------------    --------- ---------    ----------
         Net Income                                           $279          $246   $1,070          $885
                                                       ============    ========= =========    ==========
Amortization of goodwill                                        67            30      238           123
                                                       ------------    --------- ---------    ----------
Adjusted cash net income                                      $346          $276   $1,308        $1,008
                                                       ============    ========= =========    ==========
Basic earnings per share                                     $0.25         $0.21    $0.95         $0.75
Adjusted cash basic earnings per share*                      $0.31         $0.24    $1.16         $0.85
Fully diluted earnings per share                             $0.24         $0.20    $0.92         $0.72
Adjusted cash fully diluted earnings per share*              $0.30         $0.23    $1.13         $0.82

*    Adjusted to exclude amortization of goodwill
</TABLE>

<PAGE>
<TABLE>
                                                           At or for the            At or for the
                                                         Three Months Ended      Twelve Months Ended
                                                             March 31,                March 31,
                                                             --------                 --------
                                                         2000          1999       2000          1999
                                                         ----          ----       ----          ----
<S>                                                      <C>           <C>        <C>           <C>
Other Data:
-----------
Return on average assets (ratio of annualized
     net income to total average assets)                 .6%           .7%        .6%            .6%
Return on average equity (ratio of annualized
     net income to total average equity)                5.9           4.8        5.5            4.3
Net interest margin **(FTE)                             4.2           4.2        4.3            4.1
Non-performing assets to total assets                   0.6           0.7        0.6            0.7
Allowance for loan losses to non-performing loans     168.9         212.1      168.9          212.1
Allowance for loan losses to loans receivable, net      1.0           0.9        1.0            0.9
Equity to total assets at end of period                10.8          14.2       10.8           14.2
Adjusted non-interest expenses/Total revenues ***      68.8          71.1       69.4           71.2
Book value per share                                  $15.94        $16.08     $15.94         $16.08
Tangible book value per share                         $11.07        $13.87     $11.07         $13.87
Total shares outstanding                           1,191,956     1,258,406  1,191,956      1,258,406
Number of full service offices                             6             5          6              5
Number of ATM locations                                   14            12         14             12
</TABLE>

____________________
**   Net interest income (FTE) annualized divided by average earning assets
***  Adjusted non-interest expense excludes amortization of goodwill
     Total revenues = Net interest income (FTE)+ non-interest income.