Exhibit 99.1


     FOR IMMEDIATE RELEASE
     Date:    May 13, 2005
     Contact: Patricia E. Hoch, Corporate Secretary
              (717)920-5811        Fax: (717)920-1683

                         COMMUNITY BANKS, INC. DECLARES
                     INCREASED SECOND QUARTER CASH DIVIDEND

     Harrisburg,  PA - Community Banks, Inc. (Listed on Nasdaq:  CMTY) The Board
     of Directors of Community Banks,  Inc.  (Community),  the parent company of
     CommunityBanks,  has declared a quarterly  cash  dividend of $.19 per share
     payable  July 1, 2005 to  shareholders  of record  on June 16,  2005.  This
     represents  an 11.8%  increase  over the  dividend of $.17  declared in the
     first quarter of 2005.

     Community recently announced earnings for the first quarter ended March 31,
     2005.  Earnings  per share rose to $.44,  an  increase  of over 7% over the
     prior year's first quarter, while net income reached $5.5 million.

     In late 2004,  Community and PennRock  Financial  Services Corp.  announced
     their  intention to merge in a  transaction  that is expected to create the
     eighth-largest   financial   institution   headquartered  in  Pennsylvania.
     PennRock  is the parent  company of Blue Ball  National  Bank,  a Lancaster
     County, Pennsylvania-based bank with a strong presence in Berks and Chester
     Counties.  The  transaction  has received  approval  from  various  banking
     regulators  and is in the  process  of  meeting  the  various  requirements
     necessary for  shareholder  approval by both  organizations.  Pending these
     final approvals, consummation is expected to occur at or near the middle of
     2005.

     Community  currently has over $2 billion in assets and 50 banking  offices,
     and is  headquartered  in Harrisburg,  Pennsylvania,  which will remain the
     corporate offices.  PennRock, with its 19 banking offices and approximately
     $1.2 billion in assets, operates 12 offices in Lancaster County; 5 in Berks
     County  near  Reading,  Pennsylvania;  and 2  additional  offices in nearby
     Chester County.

     This press release contains "forward looking" information as defined by the
     Private  Securities  Litigation  Reform  Act of  1995,  which  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.