Gouverneur Bancorp Announces 2008 Third Quarter and Nine Months Results

GOUVERNEUR, N.Y., Aug. 5 /PRNewswire-FirstCall/ -- Gouverneur Bancorp, Inc.
(Amex: GOV) (the "Company") and its subsidiary, Gouverneur Savings and Loan
Association (the "Bank"), today announced the results for the third quarter
and nine months ended June 30, 2008.

For the three months ended June 30, 2008, the Company reported net income of
$227,000, or $0.10 per diluted share, representing a decrease of $41,000, or
15.30% from last year's net income of $268,000, or $0.12 per diluted share.
The annualized return on average assets and average equity for the three
months ended June 30, 2008 was 0.69% and 4.39% respectively, compared to 0.81%
and 5.29% for the three months ended June 30, 2007.

For the nine months ended June 30, 2008, the Company reported net income of
$703,000, or $0.31 per diluted share, representing an increase of $36,000, or
5.40% over last year's net income of $667,000, or $0.29 per diluted share. The
annualized return on average assets and average equity for the nine months
ended June 30, 2008 was 0.71% and 4.55% respectively, compared to 0.68% and
4.42% for the same period last year.

Since September 30, 2007, total assets grew $2.0 million, or 1.51%, from
$132.6 million to $134.6 million at June 30, 2008, while net loans increased
$777,000, or 0.73%, from $106.1 million to $106.9 million over the same
period.

Deposits increased $6.6 million, or 8.66%, from $76.2 million at September 30,
2007 to $82.8 million at June 30, 2008. Brokered CDs decreased $0.7 million
over the same period. Advances from the Federal Home Loan Bank of New York
decreased from $33.2 million at September 30, 2007 to $28.0 million at June
30, 2008.

Shareholders' equity was $20.8 million at June 30, 2008, an increase of 1.96%
over the September 30, 2007 balance of $20.4 million. The book value of
Gouverneur Bancorp, Inc. was $9.06 per common share based on 2,299,384 shares
outstanding at June 30, 2008. The company paid a semi-annual cash dividend of
$0.16 per share to public shareholders on March 31, 2008. Cambray Mutual
Holding Company, Gouverneur Bancorp Inc.'s parent mutual holding company and
holder of 57.0% of the Company's issued and outstanding stock, waived its
right to receive that dividend.

Mr. Richard F. Bennett, the Company's President and Chief Executive Officer,
said, "We have announced that we are moving to reduce our number of
shareholders below 300 through a stock split transaction ('the transaction')
to allow us to deregister our common stock and suspend our reporting
obligations under federal security laws. We expect to complete this
transaction at a special meeting to be scheduled in late September. We expect
to realize significant savings in operating costs once the transaction is
completed, helping our bank to improve profitability over the coming years."

Commenting on the year's results, Mr. Bennett said, "The market price of our
stock has hit new lows over the past few months, reaching values now below our
book value. The current condition of the housing market and recent discussions
about bank failures has hit bank stocks very hard. We continue to grow slowly
and profitably as demand for loans has decreased in our markets. However, we
are not seeing the drop in housing prices experienced in many areas of the
country. We expect that the economy will continue to struggle as the effects
of oil price increases continue to impact us all.

The cost of deposits and borrowed funds continues to edge downward as
maturities price lower. We are pleased that our net interest income increased
$9,000 during the first nine months of the 2008 fiscal year as compared to the
first nine months of the 2007 fiscal year. It appears that the decreases in
our costs of funds are keeping pace with the decreases in earnings on interest
earning assets, mostly loans."

The Company, which is headquartered in Gouverneur, New York, is the holding
company for Gouverneur Savings and Loan Association. Founded in 1892, the Bank
is a federally chartered savings and loan association offering a variety of
banking products and services to individuals and businesses in its primary
market area in southern St. Lawrence and northern Lewis and Jefferson Counties
in New York State.

Statements in this news release contain forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995. These
statements are based on the beliefs of management as well as assumptions made
using information currently available to management. Since these statements
reflect the views of management concerning future events, these statements
involve risks, uncertainties and assumptions. These risks and uncertainties
include among others, the impact of changes in market interest rates and
general economic conditions, changes in government regulations, changes in
accounting principles and the quality or composition of the loan and
investment portfolios. Therefore, actual future results may differ
significantly from results discussed in the forward-looking statements due to
a number of factors, which include, but are not limited to, factors discussed
in the documents filed by the Company with the Securities and Exchange
Commission from time to time.

SOURCE Gouverneur Bancorp, Inc.

Robert J. Twyman, Vice President and Chief Financial Officer of Gouverneur
Bancorp, Inc., +1-315-287-2600