DNB Financial Corporation

For further information, please contact:

Bruce Moroney

CFO/ Executive Vice President

484-359-3153 FOR IMMEDIATE RELEASE

DNB Financial Corporation

Declares a $0.13 Cash Dividend

(August 25, 2005 -- Downingtown, PA) DNB Financial Corporation, parent of DNB First, National Association, today announced that its Board of Directors declared a cash dividend of $0.13 per share for the third quarter of 2005 to shareholders of record on September 10, 2005. The cash dividend will be paid on September 20, 2005.

DNB Financial Corporation is a bank holding company whose bank subsidiary, DNB First, National Association, is a $454 million community bank headquartered in Chester County, Pennsylvania. The bank is the oldest independent bank in the county, founded in 1860, with nine full service offices. In addition to a broad array of consumer banking products, DNB offers commercial and construction lending, commercial leasing, cash management, brokerage and insurance through DNB Financial Services, and trust services through DNB Advisors. Customers may also visit DNB at its internet website at http://www.dnbfirst.com.

Inquiries regarding the purchase of DNB Financial Corporation stock may be made through the market makers listed on our website at http://www.dnbfirst.com.

4 Brandywine Avenue • Downingtown, PA 19335-0904 • (610) 269-1040