East Penn Financial Corporation Recognized as Top Performing Community Bank

East Penn Financial Corporation (NasdaqSC:EPEN) has
been recognized as a top performing community bank in US Banker
magazine's Annual Performance Ranking. The rating, published each
July, ranks the top 200 publicly traded community banks with assets up
to $1 billion based on three-year average return on equity (ROE).
   East Penn Financial Corporation, ranked number 42, was
acknowledged for achieving a three-year average return on equity of
14.5%. The Company also enjoyed three-year median earnings per share
growth of 19.4%. Strong earnings in 2004 enabled East Penn to improve
its ranking from number 91 the previous year.
   "It is an honor to be acknowledged for our accomplishments as a
top performing community bank," Brent L. Peters, President and CEO
stated. "In only 14 years of operation, we are outperforming many
older, more established institutions. We are proud of our
profitability and are thankful for the support of our customers. This
recognition is also the product of the phenomenal effort of our
employees who provide superior products and services in a profitable
manner."
   East Penn Financial Corporation, with assets of $387.6 million, is
the bank holding company for its principal subsidiary, East Penn Bank,
a locally owned community bank that serves the Lehigh Valley with 7
branch locations. East Penn Financial Corporation's stock is traded on
the Nasdaq SmallCap Market under the symbol "EPEN". Additional
information about East Penn Financial Corporation is available at
www.eastpennbank.com.

   This press release may contain forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Actual results and trends could differ materially from those set forth
in such statements due to various factors. Such factors include the
possibility that increased demand or prices for the company's
financial services and products may not occur, changing economic and
competitive conditions, technological developments, and other risks
and uncertainties, including those detailed in East Penn Financial
Corporation's filings with the Securities and Exchange Commission.