IMMEDIATE

          Lawrence T. Jilk, Chairman, National Penn Bancshares--(610) 369-6236
          Moon S. Yang, Chairman, Panasia Bank--(201) 947-6666
          Algot F. Thorell, Jr., President and CEO, Panasia Bank--(215) 247-4802


              NATIONAL PENN BANCSHARES, INC., ACQUIRES PANASIA BANK


         BOYERTOWN,  PA -- July  11,  2000 --  National  Penn  Bancshares,  Inc.
("National Penn")  (Nasdaq/NMS:NPBC),  a $2.3 billion financial  institution and
parent  company of National  Penn Bank,  and Panasia  Bank  announced  today the
completion  of National  Penn's  acquisition  of Panasia Bank.  Panasia,  a $110
million bank  headquartered  in Ft. Lee, New Jersey,  operates  three  community
offices in Ft. Lee, Palisades Park and Closter,  New Jersey and a loan office in
Flushing,  Queens,  New York. Panasia was the first  Korean-American  Bank to be
formed in New Jersey and serves a large,  dynamic Asian- American  population in
the metropolitan New York City area. The announcement was made today by Lawrence
T. Jilk, Jr.,  chairman and chief executive  officer of National Penn,  Algot F.
Thorell,  Jr., an executive  vice  president of National Penn Bank,  chairman of
National  Penn  Bank's  National  Asian  Bank  division  and the  newly  elected
president  and chief  executive  officer  of  Panasia,  Jin Hyoung  Seo,  former
chairman of Panasia,  and Moon S. Yang,  former  president  and chief  executive
officer of Panasia and Panasia's newly elected chairman.
         "We  are  excited  about  this  promising  alliance,"  said  Mr.  Jilk.
"Panasia's deep-seated commitment to the Asian-American small business community
is a natural  fit with  National  Penn's  philosophy  of  customer  service  and
support.  With Panasia, we are continuing to expand into the vibrant marketplace
of specializing in providing banking services to the Asian-American market. This
acquisition marks National Penn's entrance into the diverse multi-ethnic greater
New York City market."

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Panasia Acquisition--add 1

         Panasia  shareholders  will  receive  $29 per share  for each  share of
Panasia stock. All Panasia shareholders will receive a letter from National Penn
explaining what steps must be taken, including all necessary  documentation,  to
receive the purchase price.
         Panasia  Bank will retain its name and will  continue to operate  under
its own charter as a second bank  subsidiary of National Penn.  Later this year,
National Penn Bank,  National Penn's other subsidiary bank, intends to merge the
assets of its Philadelphia-area  National Asian Bank Division into Panasia Bank.
After the merger,  Panasia will be a $150 million bank with five offices and one
loan  center  in  three  states,  making  it  one  of  the  largest  East  Coast
headquartered banks specializing in service to the Asian-American population.
         Mr. Jilk also stated that "we are indeed  fortunate  that Mr. Yang will
continue to serve Panasia as its chairman."
         Mr. Yang, in expressing his satisfaction with the acquisition, said "we
believe that this  combination  with National Penn allows Panasia to continue to
serve our traditional  markets in the Asian  communities of the metropolitan New
York City area while expanding south into the Philadelphia  market.  We also now
have the necessary  resources to continue broadening the market area Panasia can
serve."
         Mr. Thorell stated that "this  affiliation  will continue the excellent
service that Panasia has historically provided to its customers. In addition, as
part of the National Penn family,  Panasia will be able to provide its customers
with a wide assortment of new products,  services and delivery channels that are
currently  available to National  Asian Bank  customers,  including SBA lending,
cash management, trust, investment management, stock brokerage and insurance."
         National  Penn intends to offer shares of Panasia Bank to the public in
the future. Mr. Jilk said "it is National Penn's goal to offer this ownership to
the public, especially the Asian- American community, so that this community can
have the  opportunity  to own  part of  their  own  financial  institution.  Our
long-term  goal is to be a 25% owner of Panasia,  with the other 75% being owned
principally by Asian-American investors."

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Panasia Acquisition--add 2

         National Penn Bancshares,  Inc., is the parent company of National Penn
Bank and its divisions Chestnut Hill National Bank,  Elverson National Bank, 1st
Main Line Bank and National Asian Bank, which currently  operate 57 full-service
banking  offices  in  Berks,  Bucks,  Chester,  Delaware,   Lancaster,   Lehigh,
Montgomery,  Northampton and Philadelphia  Counties in  Pennsylvania.  Trust and
investment  management  services are provided  through  Investors Trust Company,
brokerage  services are provided  through Penn  Securities,  Inc., and insurance
services  are  provided  through  Link  Financial   Services,   Inc.  Additional
information  about the  National  Penn family is  available  on National  Penn's
website at http//www.natpennbank.com.




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