WFG Capital Advisors Announces that Harleysville National Corporation Completes Its Acquisition of the Cornerstone Companies, a $1.5 Billion Investment Advisor, Life Insurance and Business Consulting Firm

Business Wire, Jan 25, 2006

HARRISBURG, Pa. -- Harleysville National Bank, a wholly owned subsidiary of Harleysville National Corporation (Nasdaq:HNBC) has completed the acquisition of the Cornerstone Companies (Cornerstone), registered investment advisors for high net worth, privately held business owners, wealthy families and institutional clients. Located in Lehigh Valley, Pennsylvania, the firm specializes in providing sophisticated open architecture asset management platforms, business succession and estate planning services, life insurance sales and compensation and benefits consulting. With assets under management of approximately $1.5 billion, Cornerstone serves clients within the Harleysville footprint, throughout Pennsylvania and other mid-Atlantic states.

Under the terms of the agreement, Cornerstone will now become a part of Millennium Wealth Management and Private Banking, a division of Harleysville National Bank. The firm's more than 30 professionals will continue to operate under the direction of its three principals, Jack Yaissle, Malcolm Cowen and Tom Scalici. As a result of the acquisition, assets under management for Millennium Wealth Management and Private Banking increased from $850 million to $2.350 billion.

WFG Capital Advisors LP of Harrisburg, Pennsylvania served as exclusive financial advisor to Cornerstone Companies.

Gregg J. Wagner, President and Chief Executive Officer, stated, "We are pleased to officially welcome Cornerstone to the Harleysville team. As with many successful acquisitions, the most important element is the people. We're excited to have Cornerstone's professionals working with us. Together we will broaden our wealth management products and services, grow our business client base and position our Millennium Wealth Management and Private Banking division as a leader in our market."

Jack Yaissle, Chairman of Cornerstone, stated, "We view our relationship with Harleysville as a joining of partners who complement each other. We will look to work closely with the entire team to maximize the value we bring to our combined customers."

Under the agreement, Harleysville National Bank acquired Cornerstone for an amount not exceeding $22.0 million. The purchase includes $15.0 million in cash paid at closing. The transaction is structured to provide for the payment of additional amounts based on meeting certain minimum operating results during a five-year period with a maximum payout of $7.0 million in cash. The company expects the transaction to be immediately accretive to Harleysville National Corporation's earnings per share.

Harleysville National Corporation, with assets in excess of $3 billion, is the holding company for Harleysville National Bank (HNB). Investment Management and Trust Services are provided through Millennium Wealth Management and Private Banking, a division of HNB. Harleysville National Corporation stock is traded under the symbol "HNBC" and is commonly quoted under Nasdaq National Market Issues. For more information, visit the Harleysville National Corporation website at www.hncbank.com.

About WFG Capital Advisors LP

WFG Capital Advisors, a PA-based investment banking firm specializing in the insurance industry, served as the exclusive financial advisor to Cornerstone Companies.