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Community Bank System Elects Not to Apply for Government Capital

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  Published in Business and Finance on Tuesday, November 18th 2008 at 15:00 GMT by Market Wire
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SYRACUSE, N.Y.--([ BUSINESS WIRE ])--Community Bank System, Inc. (NYSE: CBU) announced today that it has chosen not to apply for funds through the U.S. Treasury Department's Capital Purchase Program (CPP), which is part of the federal government's Troubled Asset Relief Program (TARP).

Community Bank System President and Chief Executive Officer, Mark E. Tryniski commented, "Our Company continues to be strong. We've produced high-quality earnings and have solid asset quality, both of which support internal capital generation. In addition, in October, we successfully raised $50 million in new capital through an oversubscribed common equity offering in support of our recently completed acquisition of 18 branch banking centers in northern New York State from Citizens Financial Group. It is our belief that we will continue to have sufficient capital availability from earnings and from the capital markets, as needed, to respond to the opportunities of our marketplaces."

Community Bank System, Inc. is based in DeWitt, N.Y., with $5.3 billion in assets and 160 customer facilities across Upstate New York, where it operates as Community Bank, N.A., and Northeastern Pennsylvania, where it is known as First Liberty Bank & Trust. Its other subsidiaries include: BPAS, an employee benefits administration and consulting firm with offices in Upstate New York, Pennsylvania, and Houston; the CBNA Insurance Agency, with offices in three northern New York communities; 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 ].

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU's operations to differ materially from CBU's expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. CBU does not assume any duty to update forward-looking statements.