NORWOOD FINANCIAL CORP.
                      ANNOUNCES 5% STOCK REPURCHASE PROGRAM

FOR IMMEDIATE RELEASE

Honesdale, Pennsylvania, June 15, 2005 -

William  W.  Davis,  Jr.,  President  and Chief  Executive  Officer  of  Norwood
Financial Corp. (the "Company")  (Nasdaq:  NWFL),  announced today its intent to
purchase up to 5% of its  outstanding  shares of common stock (or  approximately
134,000 shares) in open market  transactions.  Such stock purchases will be made
from time to time in the open market  based upon stock  availability,  price and
the Company's financial performance.  It is anticipated that such purchases will
be made during the next twelve  months,  although no assurance may be given when
such  purchases  will  be  made or the  total  number  of  shares  that  will be
purchased.

Norwood  Financial  Corp.  through its subsidiary,  Wayne Bank,  operates eleven
offices in Wayne, Pike and Monroe Counties,  Pennsylvania. As of March 31, 2005,
Norwood Financial Corp had total assets of $413.2 million,  loans outstanding of
$266.0  million,  deposits of $316.9 million and total  stockholders'  equity of
$45.6 million.

This press release contains forward-looking statements, which are not historical
facts and pertain to future operating results. These forward-looking  statements
are within the meaning of the Private Securities  Litigation Reform Act of 1995.
These  forward-looking  statements  include,  but are not limited to  statements
about our plans, objectives,  expectations,  and intentions and other statements
contained in the press release that are not historical facts.

When used in this press release, the words "expects", "anticipates",  "intends",
"plans",  "believes",  "seeks",  "estimates",  or words of similar  meaning,  or
future or conditional  verbs, such as "will",  "would",  "should",  "could",  or
"may" are  generally  intended to  identify  forward-looking  statements.  These
forward-looking  statements  are  inherently  subject to  significant  business,
economic,  and competitive  uncertainties and  contingencies,  many of which are
beyond our control. In addition, these forward-looking statements are subject to
assumptions  with respect to future  business  strategies and decisions that are
subject  to  change.  Actual  results  may differ  materially  from the  results
discussed in these forward-looking statements. We do not undertake to update any
forward-looking statement that may be made by the Company from time to time.

Contact:  Lewis J. Critelli
          Executive Vice President &
          Chief Financial Officer
          NORWOOD FINANCIAL CORP
          570-253-1455
          www.waynebank.com