Exhibit
      99.1


For
      Immediate Release





For
      additional information contact:


Michael
      W. Shelton, Chief Financial Officer


Phone:   336-369-0900





**FNB
      Southeast Completes Sale of**


**Southwest
      Virginia Offices**





GREENSBORO,
      N.C. – (BUSINESS WIRE) July 3, 2007 – FNB Southeast, a subsidiary of FNB
      Financial Services Corporation (NASDAQ: FNBF), announced today that it completed
      the previously announced transaction to sell its Norton and Pennington Gap,
      Virginia, banking offices, to New Peoples Bank on June 29, 2007




Under
      the
      terms of the agreement, FNB received a premium on the outstanding deposits
      on
      the effective date of the transaction, plus the net book value of qualifying
      loans, and certain other amounts for the real and personal property of the
      branches from New Peoples Bank. FNB anticipates a net gain on the transaction
      of
      approximately $5.0 million.




FNB
      Financial Services Corporation is a bank holding company with one subsidiary,
      FNB Southeast; a North Carolina chartered commercial bank. FNB Southeast
      currently operates 17 banking offices located in North Carolina and Virginia.
      FNB Southeast Mortgage Corporation and FNB Southeast Investment Services, Inc.
      are operating subsidiaries of FNB Southeast.




***Forward
      Looking Statements***





*This
      news release may contain forward looking statements with respect to the
      financial conditions and results of operations of FNB Financial Services
      Corporation (“FNB”).  These forward looking statements involve certain
      risks and uncertainties.  Factors that may cause actual results to
      differ materially from those contemplated by such forward looking statements
      include, among others, the following possibilities:  (1) projected
      results in connection with the implementation of our business plan are lower
      than expected; (2) competitive pressure among financial services companies
      increases significantly; (3) costs or difficulties related to the integration
      of
      acquisitions or expenses in general are greater than expected; (4) general
      economic conditions, in the markets in which FNB does business, are less
      favorable than expected; (5) risks inherent in making loans, including repayment
      risks and risks associated with collateral values, are greater than expected;
      (6) changes in the interest rate environment reduce interest margins and affect
      funding sources; (7) changes in market rates and prices may adversely affect
      the
      value of financial products; (8) legislation or regulatory requirements or
      changes thereto adversely affect the businesses in which FNB is engaged; (9)
      regulatory compliance cost increases are greater than expected; and (10)
      decisions to change the business mix of FNB.  For further information
      and other factors which could affect the accuracy of forward looking statements,
      please see FNB’s reports filed with the Securities and Exchange Commission
      (“SEC”) pursuant to the Securities Exchange Act of 1934 which are available at
      the SEC’s website (www.sec.gov) or at FNB’s website
      (www.fnbsoutheast.com).  Readers are cautioned not to place
      undue reliance on these forward looking statements, which reflect management’s
      judgments only as of the date hereof.  FNB undertakes no obligation to
      publicly revise those forward looking statements to reflect events and
      circumstances that arise after the date hereof.*







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