KEYSTONE NAZARETH BANK & TRUST COMPANY
TO OPEN TWO NEW BRANCHES

Lehigh Valley, PA (November 17, 2003) – Keystone Nazareth Bank & Trust Company is celebrating the Grand Openings of two new offices. On Wednesday, November 19, Keystone Savings Bank, a division of Keystone Nazareth Bank & Trust, will open a full-service branch inside the new GIANT® Food Store at 3926 Linden Street, Bethlehem. On Thursday, November 20, Nazareth Bank, a division of Keystone Nazareth Bank & Trust, will open a full-service office at the Nestor’s complex at 2545 MacArthur Road, Whitehall.

“We’re pleased to be able to bring our world-class community banking to more of our neighbors in Bethlehem and Whitehall Townships,” said Scott V. Fainor, President and Chief Executive Officer of Keystone Nazareth Bank & Trust. “These offices also highlight a very active year of expansion for both Keystone Savings Bank and Nazareth Bank,” Fainor added. Keystone opened two new offices this year and Nazareth opened four, in addition to the relocation of a second Whitehall office, located inside the GIANT Food Store at 2641 MacArthur Road.

The new Keystone branch delivers full-service one-stop shopping and banking convenience, seven days a week. The branch will be open from 10:00 am to 7:00 pm Monday through Friday, and 10:00 am to 4:00 pm Saturday through Sunday. The new 2,600-sq.-ft. Nazareth branch in Whitehall will feature full-service, three drive-up windows and two 24-hour ATMs. It will be open from 9:00 am to 5:00 pm Monday-Wednesday, 9:00 am to 6:00 pm Thursday-Friday and 9:00 am to 12:00pm on Saturday.

About Keystone Nazareth Bank & Trust Company:
Keystone Nazareth Bank & Trust Company is a wholly owned subsidiary of KNBT Bancorp, Inc. (NASDAQ: KNBT), a $2 billion financial institution holding company headquartered in Bethlehem, Pennsylvania, resulting from the merger on October 31, 2003 of KNBT Bancorp and First Colonial Group, Inc. Keystone Nazareth Bank & Trust operates 41 branches throughout the greater Lehigh Valley region.

Website: www.KNBT.com

Contact:
Mark A. Reimer
AVP-Public Relations
Keystone Nazareth Bank & Trust
610-807-5855
mark.reimer@knbt.com

Safe Harbor" Statement Under Private Securities Litigation Reform Act of 1995
The information contained in the press release may contain forward looking statements (as defined in the Securities Exchange Act of 1934 and the regulations thereunder) which are not historical facts or as to KNBT Bancorp’s, Keystone Nazareth Bank & Trust’s or their respective management’s intentions, plans, beliefs, expectations or opinions. Such forward looking statements are subject to risks and uncertainties, and may be affected by various factors which may cause actual results to differ materially from those in the forward looking statements. These and other risks, uncertainties and other factors are discussed in KNBT Bancorp, Inc.’s prospectus dated August 12, 2003 and its Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these documents may be obtained from KNBT Bancorp upon request and without charge (except for the exhibits thereto) or can be accessed at the website maintained by the SEC at http://www.sec.gov.