PRESS RELEASE
                                  -------------


September 28, 2001                      Samuel J. Malizia, Chairman of the Board
                                        Board, Nittany Financial Corp.
                                        (814) 466-6625

Nittany Financial Corp.                 David Richards, President and CEO
State College, Pennsylvania             Nittany Financial Corp.
                                        (814) 234-7320


                   NITTANY FINANCIAL CORP. ANNOUNCES PLANS TO
                      CLOSE STOCK OFFERING OCTOBER 24, 2001

         September 28, 2001,  STATE COLLEGE,  PENNSYLVANIA -- NITTANY  FINANCIAL
CORP.,  the holding company of Nittany Bank,  State College,  Pennsylvania,  has
announced  a  strong  response  to  its  previously  announced  offering  of the
Corporation's common stock and its intention to close the offering to the public
on  October  24,  2001.  The  Corporation  announced  in June  2001  that it was
conducting through December 31, 2001, unless earlier  terminated,  an additional
offering  of 210,000  shares of the  common  stock of the  Corporation,  with an
option to sell an  additional  40,000  shares,  if  necessary.  As stated in the
Corporation's  Prospectus,  dated June 1, 2001,  Nittany Financial Corp. offered
the shares first to its existing stockholders and customers of Nittany Bank. The
remaining  stock is now being offered to the public,  with  preference  given to
persons  residing in the State College,  Pennsylvania  area. The  Corporation is
offering up to 250,000 shares at a price of $9.50 per share. The proceeds of the
offering  are  expected to be invested  by the  Corporation  into the capital of
Nittany Bank, in order to increase the Bank's working and regulatory capital.

         Chairman  of the  Board,  Samuel J.  Malizia  announced  "approximately
200,000  shares of the stock has  already  been  purchased  and the  Corporation
intends to close the stock  offering on October 24,  2001.  We are very  pleased
with the  results of the stock  offering to date.  Although we will  continue to
offer the stock primarily to customers,  stockholders and local  residents,  the
stock offering is now open to the public,  and the  Corporation  expects that it
will sell up to the maximum amount of the stock offering."

         The President of the Corporation, David Richards, stated, the growth of
Nittany Bank during its first three years of operation has greatly  exceeded our
original  business  plans.  The proceeds from the stock  offering will allow the
Bank to  continue  to grow  and  expand  services  to the  State  College  area,
including  the opening of the Nittany Bank  Financial  Center branch on Route 26
near the  Nittany  Mall  around the end of  November.  As the only  FDIC-insured
financial  institution  headquartered and operated solely in State College,  the
majority of our  stockholders  reside in the State College area.  The additional
shares  sold to date in the stock  offering  have been  purchased  primarily  by
existing stockholders, customers and residents of the State College area.

         The common stock of Nittany Financial  Corporation is traded on the OTC
Electronic  Bulletin  Board  under  the  symbol  NTNY.  Nittany  Bank  commenced
operations  on October 26, 1998 as a newly  chartered  bank,  and operates  from
three offices in State College at 116 College Avenue, 1276 North Atherton Street
and 129 Rolling  Ridge Drive (Hills  Plaza).  The Bank will be  celebrating  its
three-year  anniversary  in  October  2001,  with over 8,000  accounts  and $100
million of assets.  Nittany  Financial  Corp. is the parent  holding  company of
Nittany  Bank and  Nittany  Asset  Management,  Inc.,  a  company  which  offers
securities investment services to the community.