Community Bank System， Inc. Announces a 5% Dividend Increase

　　SYRACUSE, N.Y., Aug. 15 /PRNewswire-FirstCall/ -- Community Bank System, Inc. (NYSE: CBU - News) announced that its' Board of Directors declared a 5.0% increase in the Company's quarterly cash dividend on its common stock to $0.21 per share. The dividend will be payable on October 10, 2007 to shareholders of record as of September 14, 2007.

    Mark E. Tryniski, President & Chief Executive Officer, stated "We are pleased to provide shareholders with our thirteenth dividend increase in fourteen years, reflecting an annualized dividend yield of 4.6% based on the August 14, 2007 closing price of $18.38 per share."

    Community Bank System, Inc. (NYSE: CBU - News) is a registered bank holding company based in DeWitt, N.Y., with $4.6 billion in assets and 140 customer facilities. Its wholly-owned banking subsidiary operates as Community Bank, N.A. across Upstate New York, and as First Liberty Bank & Trust throughout Northeastern Pennsylvania. Its other subsidiaries include: BPAS, Inc., an employee benefits firm which includes BPA-Harbridge, a provider of daily valuation and actuarial services, and Hand Benefits & Trust, a provider of Section 125, custodian and collective investment fund administration services, from offices in Upstate New York, Pittsburgh, and Houston; Community Investment Services, Inc., a broker-dealer delivering financial products throughout the company's branch network; and Nottingham Advisors, a wealth management and advisory firm with offices in Buffalo, N.Y., and North Palm Beach, Fla. For more information, please visit our websites at: www.communitybankna.com or www.firstlibertybank.com.

    Source: Community Bank System, Inc.