Wednesday, August 18, 2004

Company Press Release

Source:  Penseco Financial Services Corporation

Announcement

SCRANTON,  Pa., August 18 - Penseco Financial Services Corporation (OTC Bulletin
Board: PFNS), the Scranton, Pennsylvania based financial holding company of Penn
Security Bank & Trust Company, announced today that the Company has been advised
by Attorney  Otto P.  Robinson,  Jr.,  President  and CEO that  partially due to
health reasons he intends to retire in the future as President and CEO, and that
the Board of Directors  should begin the process of finding his  successor.  Mr.
Robinson  will  continue to serve as President and CEO during the search for his
successor  and will  continue  on the  Board  after his  successor  is in place.
Attorney Robinson also plans to continue his law practice.

Penn  Security Bank & Trust Company is  headquartered  in Downtown  Scranton and
operates  nine branches and  twenty-one  ATM's in  Lackawanna,  Wayne and Monroe
counties.