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

February 3, 2005                        Samuel J. Malizia, Chairman of the Board
                                        Nittany Financial Corp.
                                        (814) 272-3502

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

               NITTANY FINANCIAL CORP. ANNOUNCES OVERSUBSCRIPTION
                   OF STOCK OFFERING TO EXISTING STOCKHOLDERS
                             AND OFFERING TO PUBLIC

     February 3, 2005,  STATE COLLEGE,  PENNSYLVANIA -- NITTANY  FINANCIAL CORP.
(OTC:  NTNY), the holding company of Nittany Bank, State College,  Pennsylvania,
announced that as of January 31, 2005, it had received orders for  approximately
144,000  shares of common  stock from its existing  shareholders,  at a price of
$26.00 per share. The Company  previously  announced on January 3, 2005, that it
was offering up to 115,000 shares of additional  Common Stock to stockholders of
record as of November 26, 2004 through January 31, 2005.

     Due to the demand from existing stockholders,  customers and the community,
the Company will increase the amount of the stock offering and continue to offer
up to a total of 180,000 shares to the public,  with preference to customers and
the  community at the same price of $26.00 per share.  The Company  reserves the
right to  accept  or  refuse  any  orders  in part or in whole and may close the
offering at any time.

     Nittany Bank  commenced  operations  in October 1998 with two offices.  The
Bank currently  operates from four offices and five ATMs located  downtown State
College and on the North,  South and East sides of State College. A fifth office
is expected to open in  approximately  late February 2005 in the nearby historic
town of Bellefonte. Nittany Financial Corp. owns all of the outstanding stock of
Nittany Bank,  Vantage  Investment  Advisors,  LLC and Nittany Asset Management,
Inc. At September 30, 2004, the Company had total assets,  deposits,  loans (net
of allowance for loan losses) and  stockholders'  equity of $295  million,  $247
million,  $226  million  and $16.8  million,  respectively.  A copy of the stock
offering prospectus may be obtained by contacting LWilliams@NittanyBank.com.

     THE  ABOVE  INFORMATION  DOES NOT  CONSTITUTE  AN  OFFER  TO  SELL,  OR THE
SOLICITATION OF AN OFFER TO BUY, ANY  SECURITIES.  THE OFFER WILL BE MADE SOLELY
BY THE PROSPECTUS AND IS NOT BEING MADE TO PERSONS IN ANY  JURISDICTION IN WHICH
THE OFFER OR SOLICITATION WOULD BE UNLAWFUL.

     The foregoing material contains  forward-looking  statements concerning the
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.