EX-99.1

FOR IMMEDIATE RELEASE
Date:      July 1, 2005
Contact:  Donald F. Holt, EVP/CFO
(717) 920-5801, Fax (717) 920-1683

                  COMMUNITY BANKS AND PENNROCK FINALIZE MERGER


Harrisburg,  PA - The Board of  Directors of Community  Banks,  Inc.  (Listed on
NASDAQ:  CMTY) today  announced  the  consummation  of its merger with  PennRock
Financial  Services Corp (NASDAQ:  PRFS),  parent  company of Blue Ball National
Bank.  This  combination  has  resulted in the blending of two  franchises  that
currently  boast  nearly  $3.5  billion  in  combined  assets and over 70 branch
offices  in 11  counties  throughout  the  geographic  center  of  Pennsylvania;
extending  from the Pocono  region in the north to just across the  Pennsylvania
and Maryland  border.  Pursuant to the merger,  Community has now become the 8th
largest bank holding company  headquartered in the Commonwealth of Pennsylvania,
a substantial jump from its current 12th place ranking.

"Due to the  untiring  efforts of our  employees,  and the loyalty of our valued
customers  from both  PennRock  and  Community,  our new  franchise  is now in a
position to assume an even more  prominent  role in the  delivery  of  financial
services to the most vibrant areas of Pennsylvania and northern Maryland",  said
Eddie L.  Dunklebarger,  President  and CEO of  Community  Banks,  Inc.  "We are
extremely  optimistic  about  the  future  of  our  newly-constructed  financial
services  franchise,  which has been  built on the  foundation  of local  people
making local decisions in the communities that we serve."

Both  Community  and PennRock have been among the  fastest-growing  banks in the
Central  Pennsylvania  market.  Growth  has  been  influenced  by the  favorable
demographics  within their attractive  primary  markets,  the positive effect of
organic  office  expansion,  and by the  acquisition  of a number of  integrated
financial service businesses.  Furthermore,  both franchises have benefited from
the diminishing presence of larger banks that are no longer headquartered within
the region.

Prior to the  consummation,  Community has recorded  certain  non-recurring  and
merger-related expenses that will be reflected in second quarter results in 2005
that are expected to be released on or near July 18.  Operating  results for the
newly-combined  Community and PennRock  will commence on July 1, 2005.  The 2005
third  quarter  results  will  represent  the first  full  quarter  of  combined
operating   results  on  a   post-consummation   basis.   In   addition  to  the
aforementioned expenses, Community also completed a balance sheet restructuring,
involving the repayment of certain  debt, to coincide with the  consummation  in
order to maximize  operating  profits on a prospective  basis. As a consequence,
Community expects to record  substantially less net income in the second quarter
of 2005 than for the same period in 2004.



"Throughout the integration process, our twofold goal was to work together for a
seamless transition for our customers,  employees and communities and, secondly,
to make certain that we are positioned to `hit the ground running' in the second
half of 2005 and at the beginning of 2006," said Mr. Dunklebarger.  "While there
will be some additional  coordination and  consolidation  that will need to take
place prior to the end of this calendar year, we believe we are on track to meet
our expectations in regards to the efficiencies realized from the merger."

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.