**EXHIBIT
      99.1**








**JOINT
      PRESS RELEASE**








**FOR
                IMMEDIATE RELEASE**CONTACT:
            D.M.
                Takes,
            Brent
                Peters,Interim
                President and CEO
            Chairman,
                President and CEOPHONE:
            215-513-2304
            610-965-5959





**Harleysville
      National Corporation Acquires East Penn Financial Corporation, Parent Company
      of**


**East
      Penn Bank, a $451 Million Community Bank**





Harleysville,
      PA – May 15, 2007- Harleysville National Corporation (HNC) (NASDAQ: HNBC) and
      East Penn Financial Corporation (NASDAQ: EPEN) jointly announced today that
      they
      have reached a definitive agreement for East Penn Financial Corporation to
      merge
      with and into HNC and East Penn Financial’s wholly owned subsidiary, East Penn
      Bank, a $451 million bank offering deposit and lending services throughout
      the
      Lehigh Valley, PA, to merge with and into Harleysville National Bank and Trust
      Company, HNC’s banking subsidiary (HNB).  Headquartered and founded in
      Emmaus, PA in 1990, East Penn has nine banking offices located in Lehigh,
      Northampton and Berks Counties.


Deb
      M. Takes, President and CEO of HNC,
      stated, “We are very excited about the opportunity to further extend our
      franchise into the Lehigh Valley with East Penn as our partner. With every
      successful affiliation, the most important element is the people.  I’m
      pleased to welcome East Penn’s dedicated banking professionals to the
      Harleysville family and am confident they will continue to provide our valued
      northern region customers with quality products and superior
      service.”


Brent
      Peters, Chairman of the Board, President and Chief Executive Officer of East
      Penn Financial, said, “Our opportunity to affiliate ourselves with Harleysville
      National Corporation is a perfect fit for our company.  We are very
      excited about finding a partner with the same service and community philosophy
      and look forward to bringing added value to our customers and shareholders
      via
      our combined offerings.”


The
      total value of the transaction if
      it closed currently under the agreement is estimated at $92.7 million or
      approximately $14.50 per share of East Penn Financial stock, although actual
      value will depend on several factors, including the price of Harleysville
      National Corporation stock, but will not be less than $13.52 per share ($86.3
      million) or greater than $15.48 per share ($99.1 million).  Under
      terms of the Merger Agreement, each shareholder of East Penn Financial
      Corporation may elect to receive either cash only or HNC shares only for each
      share of East Penn Financial Corporation stock, but may receive a combination
      of
      both in the aggregate for all East Penn Financial Corporation shares the
      shareholder owns.  The amount of final per share consideration is
      based on a formula that is determined by the average per share value of
      HNC




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stock
      during the twenty day period ending eleven days prior to closing.  The
      consideration is subject to election and allocation procedures designed to
      provide that the cash portion is $50,284,000 but in any event not greater than
      60% of the dollar value of the merger consideration.  The parties have
      been agreed that the allocation of HNC common stock and cash will be such that
      the East Penn Financial shareholders will not recognize gain or loss for Federal
      income tax purposes on those East Penn Financial shares that are exchanged
      for
      HNC common stock in the merger.  It is currently anticipated that the
      acquisition, which is subject to state and federal regulatory approval, approval
      by the shareholders of East Penn Financial and other customary conditions to
      closing, will most likely be completed in the fall of 2007. The transaction
      is
      expected to be accretive to HNC’s earnings per share in the first full calendar
      year following the consummation.


As
      part of the agreement, East Penn
      Bank will continue to operate under the “East Penn Bank” name and logo, and will
      become a division of HNB.  Nine of HNB’s existing branches will also
      be transferred to the East Penn division including those in Lehigh, Carbon,
      Monroe, and Northampton Counties.


Mr.
      Peters will continue with HNC as an
      executive officer and President of the East Penn Bank division. He will also
      join the HNC and HNB Boards of Directors.  A new East Penn Division
      advisory board will be formed with current directors of East Penn
      Financial.


Harleysville
      National Corporation was
      advised by Janney Montgomery Scott LLC and Stradley Ronon Stevens & Young,
      LLP. East Penn Financial’s financial advisor was Sandler O’Neill and Partners,
      L.P. and its legal counsel was Bybel Rutledge LLP.


Harleysville
      National Corporation, with assets of $3.3 billion, is the holding company for
      Harleysville National Bank (HNB).  Investment Management and Trust
      Services are provided through Millennium Wealth Management, a division of HNB,
      with assets under management of $3.0 billion.  Harleysville National
      Corporation stock is traded under the symbol “HNBC” and is commonly quoted under
      NASDAQ Global Market Issues.  For more information, visit the
      Harleysville National Corporation website at
www.hncbank.com.


East
      Penn
      Financial Corporation is a locally owned and managed bank holding company
      headquartered in Emmaus, Pennsylvania. Its principal banking subsidiary is
      East
      Penn Bank, a community bank that has been serving the Lehigh Valley for over
      15
      years through its nine branch locations. Additional information about East
      Penn
      Financial Corporation is available on its website at
www.eastpennbank.com.




#
      #
      #




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The
        following disclosure is made in accordance with Rule 165 of the Securities
        and
        Exchange Commission:





Harleysville
        National Corporation and East Penn Financial Corporation will be filing
        documents concerning the merger with the Securities and Exchange Commission,
        including a registration statement on Form S-4 containing a prospectus/proxy
        statement, which will be distributed to shareholders of East Penn Financial
        Corporation Investors are urged to read the registration statement and the
        proxy
        statement/prospectus regarding the proposed transaction when it becomes
        available and any other relevant documents filed with the SEC, as well as
        any
        amendments or supplements to those documents, because they will contain
        important information. Investors will be able to obtain a free copy of the
        proxy
        statement/prospectus, as well as other filings containing information about
        Harleysville National Corporation and East Penn Financial Corporation, free
        of
        charge on the SEC's Internet site (www.sec.gov), by contacting Harleysville
        National Corporation, 483 Main Street, Harleysville, PA 19438, Telephone
        No.
        (215) 256-8851 or by contacting East Penn Financial Corporation at 22 South
        2nd
        Street, P.O. Box 869, Emmaus, PA 18049, Telephone No. (610) 965-5959. Directors
        and executive officers of East Penn Financial Corporation may be deemed to
        be
        participants in the solicitation of proxies from the shareholders of East
        Penn
        Financial Corporation in connection with the merger. Information about the
        directors and executive officers of East Penn Financial Corporation and their
        ownership of East Penn Financial Corporation common stock is set forth in
        East
        Penn Financial Corporation's proxy statement for its 2007 annual meeting
        of
        shareholders and can be obtained from East Penn Financial Corporation.
        Additional information regarding the interests of those participants may
        be
        obtained by reading the prospectus/proxy statement regarding the proposed
        merger
        transaction when it becomes available. INVESTORS SHOULD READ THE
        PROSPECTUS/PROXY STATEMENT AND OTHER DOCUMENTS TO BE FILED WITH THE SEC
        CAREFULLY BEFORE MAKING A DECISION CONCERNING THE MERGER.







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 the Corporation's filings with the
      Securities and Exchange Commission.







8