PRESS RELEASE

March 24, 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 SUCCESSFUL
                     COMPLETION OF INCREASED STOCK OFFERING

     March 24, 2005,  STATE COLLEGE,  PENNSYLVANIA  -- NITTANY  FINANCIAL  CORP.
(OTC:  NTNY), the holding company of Nittany Bank, State College,  Pennsylvania,
announced that it has completed the sale of 180,000 shares of additional  common
stock at a price of $26.00 per share or $4.68  million.  The Stock  Offering  is
expected to close on or about March 28, 2005.

     The Company  previously  announced on January 3, 2005, that it was offering
up to 115,000  shares of additional  Common Stock only to existing  stockholders
through  January  31,  2005.  Due  to a  large  oversubscription  from  existing
stockholders  through January 31, 2005, the Company  increased the amount of the
stock  offering to the public to 180,000,  with  preference to customers and the
community, at the same price of $26.00 per share. Essentially all of the 180,000
shares of stock were purchased by stockholders and customers of the Company.

     President David Z. Richards stated,  "Due to the  overwhelming  demand from
our existing  stockholders and customers,  we increased the offering by over 56%
of the  original  maximum  amount.  We take  pride  in the  high  percentage  of
ownership in Nittany by our local customers."  Chairman of the Board,  Samuel J.
Malizia added, "As the only FDIC-insured financial institution headquartered and
operated  solely in Centre  County,  we  believe  that we  provide  personalized
service,  superior  products  and  competitive  rates  and  fees  to  the  local
community.  The new capital  will  increase our  stockholders'  equity to assets
ratio to approximately 8.75% and enable the Company to aggressively continue its
growth from two  offices  and $15 million of assets in 1998 to five  offices and
over $300 million in assets."

     Nittany Bank  commenced  operations  in October  1998.  The Bank  currently
operates  from five offices and five ATMs located in the Downtown  North,  South
and  East  sides of  State  College  and in  Bellefonte,  Pennsylvania.  Nittany
Financial  Corp.  owns all of the  outstanding  stock of Nittany  Bank,  Vantage
Investment  Advisors,  LLC and Nittany  Asset  Management,  Inc. At December 31,
2004, the Company had total assets,  deposits, loans and stockholders' equity of
$299.2 million, $258.3 million, $237.7 million and $17.7 million, respectively.

     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.