PRESS RELEASE

June 27, 2003                           Samuel J. Malizia, Chairman of the 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. CLOSES
                        ADDITIONAL COMMON STOCK OFFERING


         June 27, 2003, STATE COLLEGE,  PENNSYLVANIA -- NITTANY  FINANCIAL CORP.
(OTC  Bulletin  Board:  "NTNY"),  the  holding  company of Nittany  Bank,  State
College,  Pennsylvania,  announced  that it  completed  on  June  27,  2003  its
additional  common  stock  offering  previously  announced on April 25, 2003 and
commenced on May 19, 2003. The  Corporation  sold 157,515 shares of common stock
at a price of $15.50 per share,  for a total of  approximately  $2,441,500.  The
stock offering was oversubscribed,  and  improperly-completed  orders and orders
received  after 2PM on June 2, 2003 were  refunded.  The offering was  increased
slightly to satisfy orders without  allocating  shares.  Stock  certificates are
being mailed on or about June 30, 2003 to stockholders.

         Chairman  of the Board of the  Corporation,  Sam  Malizia,  stated "the
growth of Nittany  Bank  during its first 4 1/2 years of  operation  has greatly
exceeded business plans. As State College's  hometown bank,  Nittany Bank is the
only  FDIC-insured  financial  institution  headquartered and operated solely in
State College,  and most of our  stockholders  reside in the State College area.
The shares sold in the Offering were all purchased by existing  stockholders and
customers."

         The President of the Corporation,  David Richards, stated "the proceeds
of the offering will  significantly  increase the Bank's  working and regulatory
capital to keep pace with our continued strong balance sheet growth in loans and
deposits  from the  State  College  area.  As a result of the  additional  stock
offering,  stockholders'  equity is expected to be  approximately $13.6 million.
We believe  that the stock  offering,  which is  accretive  to the book value of
existing stockholders, will enhance stockholder value."

         Nittany  Financial  Corp.  is the parent  company for Nittany  Bank,  a
federally  chartered  financial  institution  headquartered  and operated in the
State College market with $200 million in assets.  Nittany Bank began operations
in October, 1998 and currently operates four offices with 45 employees.  Nittany
Bank offers a full range of financial  services  through its four offices,  five
ATM's,  telephone banking  (814-231-1800) and transactional  internet banking at
its www.NittanyBank.com site.

         The parent company,  Nittany  Financial Corp., also owns two investment
subsidiaries.  Nittany Asset Management Inc. offers retail  investment  products
through  the  bank's  four  offices.  Vantage  Investment  Advisors  LLC.,  is a
Registered  Investment  Advisory firm providing fee based investment  management
services.  Vantage currently manages  approximately  $151 million in investments
for small business retirement plans as well as individual  portfolio  management
for consumers.

         The foregoing material contains  forward-looking  statements concerning
the financial  condition,  results of operations and business of the Company. We
caution that such statements are subject to a number of uncertainties and actual
results could differ materially and,  therefore,  readers should not place undue
reliance on any forward-looking  statements. The Company does not undertake, and
specifically  disclaims,  any obligation to publicly  release the results of any
revisions  that may be made to any  forward-looking  statements  to reflect  the
occurrence of anticipated or  unanticipated  events or  circumstances  after the
date of such statements.