EXHIBIT 99.1

PRESS RELEASE

Contact:  James W. McCarty, Jr.
          Vice President and Chief Financial Officer
          540-955-2510
          jmccarty@bankofclarke.com

     EAGLE FINANCIAL SERVICES, INC. ANNOUNCES RECORD THIRD QUARTER EARNINGS
                             AND QUARTERLY DIVIDEND

     Berryville,  Virginia,  October 16, 2003 -- EAGLE FINANCIAL SERVICES,  INC.
(OTC BULLETIN BOARD:  EFSI), the holding company for Bank of Clarke County, Bank
of Clarke County Trust Department and Eagle Investment  Services,  announces its
fourth  quarter  dividend and third  quarter  financial  results.  The Company's
common stock is listed for trading on the Over-the-Counter  (OTC) Bulletin Board
under the ticker symbol EFSI.

     A  dividend  of  $0.20  per  share  will be paid on  November  14,  2003 to
shareholders  on record as of November 1, 2003.  This  represents an increase of
$0.03 or 18% over the  November  15,  2002  dividend  of $0.17 per  share.  This
results in a total dividend of $0.75 per share for 2003 as compared to $0.64 for
2002.

     The Company's  net income for the nine months ended  September 30, 2003 was
$3,002,708.  This  represents  a  $321,268  or 12%  increase  over net income of
$2,681,440  for the same period  during 2002.  Earnings per share were $2.02 and
$1.83 for the nine months ended September 30, 2003 and 2002, respectively, which
represents an increase of $0.19 or 10%.

     Total assets of the Company as of September  30, 2003 were $339.5  million,
which represents an increase of $46.9 or 16% from total assets of $292.6 million
as of December 31, 2002.