**EXHIBIT      99.1**

**PRESS      RELEASE**

**FOR      IMMEDIATE RELEASE**

|                             |                                                                   |
|----------------------------------|------------------------------------------------------------------------|
| Contact:                         | Theresa                M. Wasko, Treasurer and Chief Financial Officer |
| Telephone                Number: | 610-965-5959                                                           |
| E-mail:                          | twasko@eastpennbank.com                                                |

**EAST      PENN FINANCIAL CORPORATION**

**ANNOUNCES      SECOND QUARTER EARNINGS**

**(July      23, 2007) – EMMAUS, PA - **
**(NASDAQ Capital Market: EPEN)**

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**www.eastpennbank.com**

| **East                Penn Financial Corporation**             |   |                        |      |   |
|----------------------------------------------------------------|--------|-----------------------------|-----------|--------|
| **Consolidated                Selected Financial Information** |   |                        |      |   |   |   |
|                                                           |   | **June                30,** |      |
| (in                thousands, except share data)               |   | **2007**                    |      |   | **2006** |   |
|                                                           |   | (Unaudited)                 |      |
| **Balance                Sheet Data:**                         |   |                        |      |   |   |   |
| Total                assets                                    |   | $                           | 443,551   |   |   | $ | 423,272 |   |
| Securities                available for sale                   |   |                        | 65,683    |   |   |   | 69,424 |   |
| Mortgages                held for sale                         |   |                        | 135       |   |   |   | 391 |   |
| Total                loans (net of unearned discount)          |   |                        | 337,109   |   |   |   | 312,093 |   |
| Allowance                for loan losses                       |   |                        | (3,343    | )      |   |   | (3,205 | ) |
| Premises                and equipment, net                     |   |                        | 9,415     |   |   |   | 10,094 |   |
|                                                           |   |                        |      |   |   |   |   |   |
| Non-interest                bearing deposits                   |   |                        | 48,983    |   |   |   | 49,662 |   |
| Interest                bearing deposits                       |   |                        | 328,845   |   |   |   | 305,304 |   |
| Total                deposits                                  |   |                        | 377,828   |   |   |   | 354,966 |   |
| Federal                funds purchased and securities          |   |                        |      |   |   |   |   |   |
|   sold                under agreements to repurchase |   |                        | 10,602    |   |   |   | 5,575 |   |
| Other                borrowings                                |   |                        | 19,000    |   |   |   | 30,000 |   |
| Junior                subordinated debentures                  |   |                        | 8,248     |   |   |   | 8,248 |   |
| Stockholders'                equity                            |   |                        | 25,543    |   |   |   | 22,854 |   |
| Common                shares outstanding                       |   |                        | 6,310,474 |   |   |   | 6,304,262 |   |
| Book                value per share                            |   | $                           | 4.05      |   |   | $ | 3.63 |   |

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|                                                     |   |                              |   |   |                              |   |   |     |   |   |     |   |
|----------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|----------|--------|--------|----------|--------|
|                                                     |   | **Three                Months**   |   |   | **Six                Months**     |   |
|                                                     |   | **Ended                June 30,** |   |   | **Ended                June 30,** |   |
| (in                thousands, except share data)         |   | **2007**                          |   |   | **2006**                          |   |   | **2007** |   |   | **2006** |   |
|                                                     |   | (Unaudited)                       |   |   | (Unaudited)                       |   |
| **Statement                of Income Data:**             |   |                              |   |   |                              |   |   |     |   |   |     |   |
| Total                interest income                     |   | $                                 | 6,437  |   |                              | $      | 5,742  |     |   | $      | 12,777   |   |   | $ | 11,284 |   |
| Total                interest expense                    |   |                              | 3,142  |   |                              |   | 2,410  |     |   |   | 6,243    |   |   |   | 4,656 |   |
| Net                interest income                       |   |                              | 3,295  |   |                              |   | 3,332  |     |   |   | 6,534    |   |   |   | 6,628 |   |
| Provision                for loan losses                 |   |                              | 90     |   |                              |   | 119    |     |   |   | 135      |   |   |   | 209 |   |
| Net                interest income after provision       |   |                              | 3,205  |   |                              |   | 3,213  |     |   |   | 6,399    |   |   |   | 6,419 |   |
| Other                income                              |   |                              | 662    |   |                              |   | 567    |     |   |   | 1,240    |   |   |   | 1,210 |   |
| Other                expenses                            |   |                              | 2,946  |   |                              |   | 2,719  |     |   |   | 5,622    |   |   |   | 5,520 |   |
|                                                     |   |                              |   |   |                              |   |   |     |   |   |     |   |   |   |   |   |
|    Net                income before taxes |   |                              | 921    |   |                              |   | 1,061  |     |   |   | 2,017    |   |   |   | 2,109 |   |
| Income                tax expense                        |   |                              | 129    |   |                              |   | 212    |     |   |   | 327      |   |   |   | 430 |   |
|                                                     |   |                              |   |   |                              |   |   |     |   |   |     |   |   |   |   |   |
|                   Net income                   |   | $                                 | 792    |   |                              | $      | 849    |     |   | $      | 1,690    |   |   | $ | 1,679 |   |
|                                                     |   |                              |   |   |                              |   |   |     |   |   |     |   |   |   |   |   |
| Basic                earnings per share (1)              |   | $                                 | 0.13   |   |                              | $      | 0.13   |     |   | $      | 0.27     |   |   | $ | 0.27 |   |
| Diluted                earnings per share (2)            |   | $                                 | 0.12   |   |                              | $      | 0.13   |     |   | $      | 0.27     |   |   | $ | 0.27 |   |
| Cash                dividends per common share           |   | $                                 | 0.00   |   |                              | $      | 0.00   |     |   | $      | 0.12     |   |   | $ | 0.11 |   |

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|                                                                                           |   | **Six                Months**     |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                           |   | **Ended                June 30,** |   |
|                                                                                           |   | **2007**                     |   | **2006**  |
|                                                                                           |   | (Unaudited)                  |   | (Unaudited)  |
| **Selected                Financial Ratios:**                                                  |   |                              |   |   |   |   |
| Annualized                return on average equity                                             |   |                              | 13.48  | % |   |   | 14.94 | % |
| Annualized                return on average assets                                             |   |                              | 0.77   | % |   |   | 0.84 | % |
| Net                interest margin (3)                                                         |   |                              | 3.42   | % |   |   | 3.76 | % |
| Efficiency                ratios:                                                              |   |                              |   |   |   |   |   |   |
|   Operating                expenses as a percentage of revenues                (3)   |   |                              | 2.57   | % |   |   | 2.76 | % |
|   Operating                expenses as a percentage of average                assets |   |                              | 65.72  | % |   |   | 66.82 | % |
| Tier                1 leverage capital                                                         |   |                              | 7.84   | % |   |   | 8.04 | % |
| Net                loans (4) as a percent of deposits                                          |   |                              | 89.22  | % |   |   | 87.92 | % |
| Average                equity to average assets                                                |   |                              | 5.73   | % |   |   | 5.62 | % |
|                                                                                           |   |                              |   |   |   |   |   |   |
| **Selected                Asset Quality Ratios:**                                              |   |                              |   |   |   |   |   |   |
| Allowance                for loan losses / Total loans (4)                                     |   |                              | 0.99   | % |   |   | 1.03 | % |
| Allowance                for loan losses /                                                     |   |                              |   |   |   |   |   |   |
|    Non-performing                assets (5)                                     |   |                              | 154.13 | % |   |   | 330.07 | % |
| Non-accrual                loans / Total loans (4)                                             |   |                              | 0.27   | % |   |   | 0.18 | % |
| Non-performing                assets (5) / Total assets                                        |   |                              | 0.49   | % |   |   | 0.23 | % |
| Net                charge-offs / Average loans (4)                                             |   |                              | 0.02   | % |   |   | 0.03 | % |

| (1)  Based                upon                the weighted average number of shares of common stock outstanding                for the                applicable periods.                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  Based                upon                the weighted average number of shares plus dilutive potential common                share                equivalents outstanding for the applicable                periods. |
| (3)  Calculated                on                a fully tax-equivalent basis.                                                                                                                                            |
| (4)  The                term                “loans” includes loans held in the portfolio, including non-accruing                loans, and excludes loans held for sale.                                      |
| (5)  Includes                non-accrual loans.                                                                                                                                                                           |