PWOD Penns Woods Bancorp Inc

Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company's Board of Directors declared a third quarter 2006 cash dividend of $0.44 per share. The dividend represents an increase of 13% over the third quarter 2005 dividend and a $0.01 increase over the second quarter 2006 dividend. The dividend is payable September 26, 2006 to shareholders of record September 12, 2006. The year to date 2006 dividends declared of $1.29 represent a $0.14 increase as compared to the same period of 2005. "We continue to pay a dividend yielding in excess of four percent as part of our commitment to increasing shareholder value. The dividend yield coupled with the stock repurchase program will assist the Board of Directors and management in maintaining our strategic course of increasing shareholder value," commented Mr. Walko. Previous press releases and additional information can be obtained from the company's website at www.jssb.com.