Elan Financial Services Acquires Harleysville Credit Card Portfolio

Harleysville National Corporation is pleased to announce that its wholly owned subsidiary, Harleysville National Bank, has established an agent issuing relationship with Elan Financial Services, a national credit card issuer. Under the agreement, Elan has purchased the bank’s existing credit card portfolio, and subsequently will issue credit cards for the bank under the Harleysville name.

As of March 31, 2006, the bank held approximately $14.5 million in credit card receivables. Harleysville National Corporation expects to report a gain for the second quarter of 2006 from the sale, net of federal income taxes, of approximately $900,000 or $.03 per diluted share. The Bank will continue to earn certain fees from ongoing portfolio activity.

President and CEO, Gregg J. Wagner, commented on the transaction. “We continue to look for opportunities to bring our customers the best in products and services. Elan is a leader in the credit card payment and services industry and will provide our customers a differentiated and robust suite of credit card products along with top flight customer service.”