Exhibit 99.1


FOR IMMEDIATE RELEASE
Date:             February 10, 2004
Contact:          Patricia E. Hoch, Corporate Secretary
                  (717) 920-5811, Fax: (717) 920-1683


                         COMMUNITY BANKS, INC. DECLARES
               FIRST QUARTER CASH DIVIDEND AND A 5% STOCK DIVIDEND

Harrisburg,  PA - Community Banks,  Inc.  (Listed on Nasdaq:  CMTY) The Board of
Directors of Community  Banks,  Inc., the parent company of Community Banks, has
declared a quarterly  cash dividend of $ .17 per share payable April 1, 2004, to
shareholders of record on March 17, 2004.

The Board also approved a 5% stock dividend which will be paid April 30, 2004 to
shareholders of record on April 16, 2004.

Community recently announced increased earnings for the full year ended December
31, 2003.  Earnings per share  (adjusted for the 20% stock dividend paid January
30, 2004)  reached  $1.71 and net income  increased to $20.4  million for all of
2003,  resulting in  increases of over 10% in per share  earnings and 11% in net
income as compared to results for 2002.

Currently,  Community Banks,  Inc.'s banking subsidiary has 46 community banking
offices and nearly 100 ATMs throughout central and northeastern Pennsylvania and
northern  Maryland.  In addition to banking and  insurance  services,  Community
offers complete trust, investment and settlement services.

This press release  contains  "forward  looking"  information  as defined by the
Private  Securities  Litigation Reform Act of 1995, that is based on Community's
current  expectations,  estimates,  and  projections  about  future  events  and
financial  trends  affecting  the  financial  condition of its  business.  These
statements are not historical facts or guarantees of future performance, events,
or results.  Such  statements  involve  potential risks and  uncertainties  and,
accordingly,  actual  performance  results  may  differ  materially.   Community
undertakes  no  obligation  to  publicly   update  or  revise  forward   looking
information,  whether as a result of new, updated information,  future events or
otherwise.