PRESS RELEASE

Nittany Financial Corp.                     Subject: Cash Dividend

                              Contact: Samuel J. Malizia, Chairman of the  Board
                                       David Z. Richards, Jr., President & CEO
                                       116 E. College Ave.
                                       State College, PA 16801
                                       (814) 238-5724

                                       Date:    November 21, 2005

                              FOR IMMEDIATE RELEASE

                 NITTANY FINANCIAL CORP. DECLARES CASH DIVIDEND

     State College, Pennsylvania--November 21, 2005--Samuel J. Malizia, Chairman
of the Board of Nittany  Financial  Corp.  (the  "Company") (OTC Bulletin Board:
NTNY),  announced  today that the Company's  Board of Directors has declared its
second  semi-annual cash dividend of $.25 per share to stockholders of record as
of December 1, 2005.  The Company  expects to pay the cash  dividend on or about
December 30, 2005.

     The Company is the parent  company for Nittany Bank, a federally  chartered
financial   institution   headquartered   and  operated  in  State  College  and
Bellefonte,  Pennsylvania.  Nittany  Bank began  operations  in October 1998 and
currently operates five offices with 61 full-time equivalent employees.  Nittany
Bank offers a full range of financial  services  through its five  offices,  six
ATMs, telephone banking (814-231-1800) and transactional internet banking at its
www.NittanyBank.com website.