For Immediate Release


Wednesday, August 1, 2001

Contact: John D. Kidd, President and CEO
                  (740) 286-3283

Oak Hill Financial To Acquire Employee Benefits Agency

Jackson, Ohio - Oak Hill Financial, Inc. (Nasdaq NMS: OAKF) announced today that
it has signed a definitive agreement to acquire privately held insurance agency
Innovative Financial Services, Inc (IFS).

Specializing in employee benefits, IFS, which operates under the name McNelly,
Patrick & Associates, serves the insurance needs of over 300 business,
non-profit, and government organizations representing 10,000 individuals and
families. The agency's product line includes health, disability, and long-term
care insurance, cafeteria and 401(k) plans, and consulting and benefits
reporting services for employers.

In a transaction valued at $2.7 million based on Oak Hill Financial's July 26,
2001 closing price, IFS shareholders will receive 172,414 shares of unregistered
Oak Hill Financial common stock, which represents an exchange ratio of 689.656
shares of OAKF stock for every one share of IFS stock. This exchange ratio was
set when both parties agreed to the financial terms of the transaction on June
28. The transaction will be accounted for as a pooling-of-interests and is
expected to close by August 31, 2001. IFS will continue to operate under the
McNelly, Patrick & Associates name, and its existing management will remain in
place.

"IFS is the premier employee benefits agency in our region and very highly
respected throughout the insurance industry," said Oak Hill Financial President
and CEO John D. Kidd. "These guys have done a tremendous job building their
agency. They've done it through hard work, a commitment to customer service, and
total dedication to their clients. That's the type of people we want to have on
our team."

Oak Hill Financial expects the transaction to be immediately accretive to
earnings per share. "At their current production levels, we expect that this
transaction will add about $.01 per share annually to our earnings," stated
Kidd, "Of course, further growth will increase that, which is what we intend to
do." Kidd added that IFS has grown revenues at a compound average annual growth
rate of 14.8% over the past five years.

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Based on the company's pro forma projections, IFS is expected to contribute $2.3
million in gross revenues and $369,000 in net earnings to Oak Hill Financial in
the first 12 months following the transaction.

Kidd explained that the IFS acquisition is part of Oak Hill Financial's
long-term strategy. "One of our goals is diversification of revenues within the
financial services industry," he said, "and we've targeted insurance services as
another growth area for the company to complement our banking and consumer
finance operations."

"We're looking to become a more complete provider of financial services, and
this is a great step in that direction," Kidd added. "This can be a springboard
for us into other areas of insurance. Not only will this positively impact
earnings now, but it also gives us the opportunity to significantly increase
shareholder value in the future."

Oak Hill Financial expects to take an estimated pre-tax charge in the quarter
ended September 30, 2001 of $180,000 for expenses related to the IFS
acquisition. Marsh, Berry & Company, Inc. served as advisor to Oak Hill
Financial in connection with the transaction.

Oak Hill Financial is a financial holding company. The company's current
subsidiaries -- Oak Hill Banks, Towne Bank, and Action Finance Company --
operate 24 full-service banking offices, two bank loan production offices, and
six consumer finance offices in 15 counties across southern Ohio As of June 30,
2001, Oak Hill Financial had $724.6 million in total assets.

Forward-Looking Statements Disclosure

This release contains certain forward-looking statements related to the future
performance and condition of Oak Hill Financial, Inc. These statements, which
are subject to numerous risks and uncertainties, are presented in good faith
based on the company's current condition and management's understanding,
expectations, and assumptions regarding its future prospects as of the date of
this release. Actual results could differ materially from those projected or
implied by the statements contained herein. The factors that could affect the
company's future results are set forth in the periodic reports and registration
statements filed by the company with the Securities and Exchange Commission.















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