American Bancorp of New Jersey, Inc. Announces OTS Denial of Application for Stock Repurchases

American Bancorp of New Jersey, Inc. (NASDAQ: ABNJ)
("American") announced today that the Office of Thrift Supervision
("OTS") has disapproved the Company's recent application to repurchase
up to 5% of its common stock through an open market stock repurchase
program.
   Separately, American previously announced that it intends to
commence the repurchase of up to 208,293 shares to fund stock awards
previously made under the American Bank of New Jersey 2005 Restricted
Stock Plan, which was voted on by stockholders at the 2005 annual
meeting. Purchases to fund the restricted stock plan will be made from
time to time in the open market, based on stock availability, price
and American's financial performance. The OTS' recent action does not
affect repurchases to fund the stock benefit plan.
   American Bancorp of New Jersey, Inc. is the holding company for
American Bank of New Jersey, a federally chartered stock savings bank
which conducts business from its main office in Bloomfield, New Jersey
and one branch office in Cedar Grove, New Jersey.

   The foregoing material contains forward-looking statements
concerning our financial condition, results of operations and
business. We caution that such statements are subject to a number of
uncertainties and actual results could differ materially, and,
therefore, readers should not place undue reliance on any
forward-looking statements. We do not undertake, and specifically
disclaim, any obligation to publicly release the results of any
revisions that may be made to any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.