EXHIBIT 99
**PUBLIC ANNOUNCEMENT**

December 18, 2002

Contact:  Gregory J. Matthews, Interim President/CEO                 (574) 271-8300

******Sobieski Bancorp Announces Appointment of CEO**

SOUTH BEND, Ind. - December 18, 2002--Sobieski Bancorp, Inc., parent company of Sobieski Bank, (Nasdaq-SCM:SOBI) announced today the appointment of Steven C. Watts as President and Chief Executive Officer of the Companyand the Bank, effective January 1, 2003.

Watts has been a banker for over 29 years, 20 of those in the Michiana market.  Most recently, he was the DistrictManager of Commercial Banking for Standard Federal Bank.  Prior to that, he served Republic Bank in Michigan astheir West Regional President, overseeing the growth of seven banks.  Watts also spent 17 years with NorwestCorporation, starting the Middle Market banking group in Iowa and was President of Banks in Omaha, Nebraska andSouth Bend.  

Watts has been active in many community organizations such as the United Way, the Community Foundation of St.Joseph County, Family & Children's Center, the Boy's & Girl's Club, the Center for the Homeless Advisory Board, theChamber of Commerce, as well as the South Bend Symphony and St. Joseph County Museum of Art.  He has alsoserved as a member of the Diversity Council for the University of Notre Dame's Mendoza College of Business.  Wattsis a native of Mishawaka, and graduated from Ball State University.  He is also a graduate of the University ofWisconsin's Graduate School of Banking.

"Throughout his banking career, Steve has shown proven banking and leadership abilities that we believe blend wellwith Sobieski's history and its vision for the future," said Robert Urbanski, chair of Sobieski's board of directors.  "Weare extremely pleased to add him as the head of our management team."      

Sobieski Bank, founded in 1893 primarily to serve the West Side Polish immigrant community, is one of SouthBend's oldest companies. Sobieski Bancorp, Inc. had $142.9 million in assets and stockholders' equity of $9.7million at September 30, 2002. The Company is headquartered at 2930 W. Cleveland Road, South Bend, and istraded on the NASDAQ Small Cap Market under the symbol "SOBI". 

When used in this press release and in the Company's filings with the Securities and Exchange Commission, inother press releases or other public shareholder communications, or in oral statements made with the approval of anauthorized executive officer, the words or phrases "believe," "will likely result," "expects," "are expected to," "willcontinue," "is anticipated," "estimate," "project," "plans," or similar expressions are intended to identify" forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautionednot to place undue reliance on any forward-looking statements, which speak only as of the date made. Thesestatements may relate to the Company's future financial performance, strategic plans or objectives or other financialitems. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differmaterially from those anticipated in the statements. 

Important factors that could cause actual results to differ materially from the results anticipated or projected include,but are not limited to, the following: (1) the credit risks of lending activities, including changes in the level anddirection of loan delinquencies and write-offs; (2) changes in management's estimate of the adequacy of theallowance for loan losses and requirements by the Bank's primary federal regulator, the Office of ThriftSupervision, that provisions be made for loan losses, including possible additional provisions for loan lossesnecessitated by the unauthorized and fraudulent loans made by a former employee of the Bank; (3) competitivepressures among depository institutions; (4) interest rate movements and their impact on customer behavior and theCompany's net interest margin; (5) the impact of repricing and competitors' pricing initiatives on loan and depositproducts; (6) the Company's ability to adapt successfully to technological changes to meet customers' needs anddevelopments in the marketplace; (7) the Company's ability to access cost-effective funding; (8) changes in financialmarkets and general economic conditions; (9) new legislation or regulatory changes; and (10) changes in accountingprinciples, policies or guidelines. 

The Company does not undertake any obligation to update any forward-looking statement to reflect circumstancesor events that occur after the date on which the forward-looking statement is made.