FOR IMMEDIATE RELEASE

Date:       June 1, 2005

Contact:    Eddie L. Dunklebarger              Melvin Pankuch
            Chairman, President & CEO          Executive Vice President & CEO
            Community Banks, Inc.              PennRock Financial Services Corp.
            (717) 920-5811                     (717) 354-3504
            (717) 920-1683 (fax)               (717) 354-2436 (fax)


           COMMUNITY BANKS, INC. AND PENNROCK FINANCIAL SERVICES CORP.
             HOLD SHAREHOLDERS' MEETINGS AND APPROVE PENNROCK MERGER

Harrisburg, PA - Community Banks, Inc. (Listed on NASDAQ: CMTY)
Lancaster, PA - PennRock Financial Services Corp. (Listed on NASDAQ: PRFS)

At separate meetings held yesterday,  the shareholders of Community Banks, Inc.,
the parent holding company of  CommunityBanks,  and the shareholders of PennRock
Financial Services Corp., the parent holding company of Blue Ball National Bank,
approved the merger of PennRock with and into Community.

Community  shareholders  also  approved an increase in the number of  authorized
shares of  Community's  common  stock  from  20,000,000  to  50,000,000  and the
re-election of Eddie L.  Dunklebarger as director of Community for an additional
four year term.

Eddie L. Dunklebarger,  Chairman,  President and CEO of Community,  presented an
overview of  Community's  2004 and first  quarter 2005  results,  as well as the
Company's  strategic  direction.  He reviewed an analysis of the PennRock merger
and its  anticipated  benefits  to the growth  and  profitability  of  Community
following the merger. Mr.  Dunklebarger  stated "We believe PennRock is the most
attractive  partner for Community  Banks,  Inc. This  affiliation will provide a
meaningful  entry into  growth  markets  with  favorable  demographics  and will
strengthen  the market  position  of our  franchise."  He noted that the deal is
expected to close July 1, 2005 and that Community's second quarter results would
include merger  related  expenses.  He also stated that due to current  economic
conditions,  management  is  reviewing  alternative  balance  sheet  restructure
opportunities,  the impact of which  would be  reflected  in the second  quarter
results. According to Mr. Dunklebarger,  "Our focus is to hit the ground running
in the second half of 2005 with the most efficient balance sheet possible."

Following  the  PennRock  shareholder  meeting,  Mr.  Pankuch,   Executive  Vice
President  and  CEO  of  Pennrock  Financial  Services  Corp.  commented  on the
complementary nature of both organizations'  community banking model. "Both Blue
Ball National Bank and CommunityBanks  have prospered because they truly deliver
on the promise of local decision making by bankers with consummate knowledge and
expertise  in the  markets  they serve.  We believe  that the  partnership  with
CommunityBanks will result in a stronger, more profitable company than either of
us could have achieved separately. "

After consummation,  the franchise will operate 69 branch offices, more than 120
ATMs,  and have combined  assets of $3.4 billion,  becoming the 8th largest bank
based in  Pennsylvania.  "Integration  of Blue Ball with minimal  disruption  to
either  bank's  momentum  will be the  focus  of the  organization  in 2005  and
beyond," Mr.  Dunklebarger  commented.  "We appreciate  the confidence  that the
shareholders of both organizations have shown in the combined  management of our
organization,  and look  forward  to many  benefits  from this  value  enhancing
transaction."

Community Banks, Inc., headquartered in Harrisburg, PA, is the parent company of
CommunityBanks.  After  completion of the merger,  slated for July 1, 2005, Blue
Ball will become a division  of  CommunityBanks,  sharing  many  resources,  but
retaining its own brand identity and distinct product and service offerings.  In
addition to community  banking  services,  the combined  organization will offer
complete asset management and trust services,  retail  investment,  personal and
commercial  insurance  lines,  and title  insurance  and real estate  settlement
services.

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.