FOR IMMEDIATE RELEASE                         FOR FURTHER INFORMATION
July 16, 2008                                 Brendan J. McGill
                                              Senior Vice President & CFO
                                              215-256-8828

Harleysville Savings Financial  Corporation Announces an Increase in the Regular
Cash Dividend and Improved Third Quarter Earnings for Fiscal Year 2008

        Harleysville, PA., July 16, 2008 - Harleysville Savings Financial

      Corporation  (NASDAQ:HARL)  reported  today  that the  Company's  board of
directors  declared an increase in the regular  quarterly  cash dividend to $.18
per share from $.17 per share which represents a 5.9% increase. This is the 84th
consecutive   quarter  that  the  Company  has  paid  a  cash  dividend  to  its
stockholders.  The  cash  dividend  will  be  payable  on  August  20,  2008  to
stockholders of record on August 6, 2008.

      Net income for the third quarter was  $1,036,000 or $.29 per diluted share
compared to $814,000 or $.21 per diluted  share for the same  quarter last year.
During the current  quarter the bank recognized  impairment from  investments in
bank equity securities of $252,000.

      Net income for the nine months ended June 30, 2008  amounted to $2,871,000
or $.77 per diluted  share  compared to $2,475,000 or $.64 per diluted share for
the same nine-month period a year ago.

      Ron Geib,  President and Chief Executive  Officer of the Company,  stated,
"We are pleased with the current positive  earnings momentum of the Company that
has enabled us to create additional value for our stockholders by increasing the
cash dividend. With this increase, fiscal 2008 will be the 21st consecutive year
the Company has increased the cash dividend.

      Despite the  difficult  economic  times our country is  currently  facing,
Harleysville  Savings operates in a geographic area where real estate values and
employment  have  remained  relatively  stable.   These  conditions  along  with
remaining true to our fundamental  operating  principles of maintaining  prudent
underwriting standards and investing in high credit quality assets,  controlling
our operating expenses,  and practicing sound capital  management,  have allowed
the Company to be well  positioned to benefit from the favorable  yield curve in
the market.

      With the  current  increase  in the  cash  dividend  and the $2.6  million
repurchase of stock last quarter,  the Company's capital management reflects our
confidence in our true community banking business model."

      The Company's  assets totaled $824.7 million  compared to $778.1 million a
year ago.  Stockholders'  book value increased to $12.95 per share from $12.73 a
year ago.

      Harleysville  Savings  Financial  Corporation  is the holding  company for
Harleysville Savings Bank.  Established in 1915,  Harleysville Savings Bank is a
Pennsylvania  chartered and federally  insured  savings bank.  Headquartered  in
Harleysville,  PA.  Harleysville is located in central Montgomery County,  which
has the third largest  population  base and the second highest per capita income
in the state of Pennsylvania.

      This  presentation  may  contain  forward-looking  statements  (within the
meaning of the Private Securities Litigation Reform Act of 1995). Actual results
may  differ  materially  from the  results  discussed  in these  forward-looking
statements.  Factors  that might cause such a  difference  include,  but are not
limited to, general  economic  conditions,  changes in interest  rates,  deposit
flows,  loan demand,  real estate values and competition;  changes in accounting
principles,  policies, or guidelines;  changes in legislation or regulation; and
other economic; competitive, governmental, regulatory, and technological factors
affecting the Company's operations, pricing, products and services.

<PAGE>
<TABLE>
<CAPTION>
Harleysville Savings Financial Corporation
Selected Consolidated Financial Data as of June 30, 2008

(Dollars in thousands except per share data)    ----------------------------    ----------------------------
((1)Unaudited)                                       Three Months Ended:             Nine Months Ended:
                                                ----------------------------    ----------------------------
                                                  June 30,        June 30,        June 30,        June 30,
Selected Consolidated Earnings Data                2008(1)         2007(1)         2008(1)         2007(1)
---------------------------------------         ------------    ------------    ------------    ------------
<S>                                                   <C>             <C>             <C>             <C>
Total interest income                                 10,812          10,115          32,035          29,847
Total interest expense                                 7,056           7,249          22,206          21,234
                                                ------------    ------------    ------------    ------------

Net Interest Income                                    3,756           2,866           9,829           8,613
Provision for loan losses                                 35              --              40              --
                                                ------------    ------------    ------------    ------------
Net Interest Income after Provision for
Loan Losses                                            3,721           2,866           9,789           8,613
                                                ------------    ------------    ------------    ------------

Impairment of equity securities                          252              --             252              --
Gain on sales of investments                              --              --               4             160
Non-interest income                                      453             475           1,415           1,253
Total non-interest expenses                            2,554           2,316           7,365           6,890
                                                ------------    ------------    ------------    ------------

Income before Income Taxes                             1,368           1,025           3,591           3,136
Income tax expense                                       332             211             720             661
                                                ------------    ------------    ------------    ------------

Net Income                                      $      1,036    $        814    $      2,871    $      2,475
                                                ============    ============    ============    ============
<CAPTION>
<S>                                                   <C>             <C>             <C>             <C>
Per Common Share Data
---------------------------------------
Basic earnings                                  $       0.29    $       0.21    $       0.78    $       0.64
Diluted earnings                                $       0.29    $       0.21    $       0.77    $       0.64
Dividends                                       $       0.17    $       0.17    $       0.51    $       0.51
Book value                                      $      12.95    $      12.73    $      12.95    $      12.73
Shares outstanding                                 3,553,533       3,921,177       3,553,533       3,921,177
Average shares outstanding - basic                 3,555,039       3,859,397       3,669,262       3,859,267
Average shares outstanding - diluted               3,598,927       3,877,469       3,713,388       3,888,142
<CAPTION>
Harleysville Savings Financial Corporation
Selected Consolidated Financial Data as of June 30, 2008

(Dollars in thousands except per share data)    ----------------------------    ----------------------------
((1)Unaudited)                                       Three Months Ended:             Nine Months Ended:
                                                ----------------------------    ----------------------------
                                                  June 30,        June 30,        June 30,        June 30,
Other Selected Consolidated Data                   2008(1)         2007(1)         2008(1)         2007(1)
---------------------------------------         ------------    ------------    ------------    ------------
<S>                                                   <C>             <C>             <C>             <C>

Return on average assets                                0.51%           0.42%           0.48%           0.44%
Return on average equity                                9.09%           6.64%           8.25%           6.77%
Interest rate spread                                    1.84%           1.29%           1.49%           1.34%
Net yield on interest earning assets                    2.06%           1.53%           1.73%           1.58%
Operating expenses to average assets                    1.25%           1.21%           1.23%           1.21%
Efficiency ratio                                       60.68%          69.32%          65.88%          69.86%
Ratio of non-performing loans to total
  assets at end of period                               0.08%           0.06%           0.08%           0.06%
Loan loss reserve to total loans, net                   0.42%           0.47%           0.42%           0.47%
<CAPTION>
                                                   --------------------------------------------------------------
                                                    June 30,      Mar 31,      Dec 31,     Sept 30,      June 30,
Selected Consolidated Financial Data                 2008(1)      2008 (1)     2007 (1)      2007        2007(1)
---------------------------------------            ----------   ----------   ----------   ----------   ----------
<S>                                                <C>          <C>          <C>          <C>          <C>
Total assets                                       $  824,655   $  811,854   $  791,888   $  773,544   $  778,136
Consumer loans receivable - net                       425,139      415,019      410,220      403,738      397,018
Commercial loans                                       30,993       25,318       18,696       15,314       13,071
Loan loss reserve                                       1,960        1,925        1,924        1,933        1,943
Cash and investment securities                         99,338      105,769      125,729      118,920      120,204
Mortgage-backed securities                            224,917      223,579      195,735      193,660      202,379
FHLB stock                                             15,152       14,096       13,999       14,140       14,017
Deposits                                              440,921      450,516      440,500      424,035      433,074
Advances                                              329,154      309,285      298,711      298,609      288,017
Total stockholders' equity                             46,004       45,397       47,239       47,041       49,045
</TABLE>