Exhibit No. 99.1
[LOGO]
News Release

COMMUNITY BANK SYSTEM, INC.
5790 Widewaters Parkway, DeWitt, N.Y. 13214      For further information, please

contact:                                                      Scott A. Kingsley,
                                                  EVP & Chief Financial Officer,
                                                     Community Bank System, Inc.
                                                          Office: (315) 445-3121
                                                             Fax: (315) 445-7347

                                                                              or

                                                                  Jerry W. Zehr,
                                                               President and CEO
                                                                 ONB Corporation
                                                          Office: (315) 462-2511
                                                             Fax: (315) 462-2058

             COMMUNITY BANK SYSTEM TO ACQUIRE ONTARIO NATIONAL BANK

        $95 MILLION-ASSET BANK TO STRENGTHEN CBU'S FINGER LAKES FOOTPRINT

      Syracuse,  N.Y. - August 3, 2006 - Community Bank System, Inc. (NYSE: CBU)
has entered into an agreement to acquire ONB Corporation,  the parent of Ontario
National  Bank,   headquartered  in  Clifton  Springs,   N.Y.,  in  an  all-cash
transaction  valued at $210 per share,  or  approximately  $15.7  million in the
aggregate. This acquisition, which is subject to regulatory approval and vote of
ONB Corporation shareholders,  is expected to close during the fourth quarter of
2006 and be immediately accretive to earnings.

      As of June 30, 2006, Ontario National Bank held $95 million in assets, $83
million  in  deposits  and $60  million in loans.  It  currently  operates  four
branches,  including three in the Ontario County villages of Clifton Springs (2)
and Phelps,  and one in the Wayne County  village of Palmyra,  in addition to 11
ATMs located  throughout the two-county  region. All branches will be re-branded
as  Community  Bank,  N.A  facilities,  the  operating  name  of  CBU's  banking
subsidiary within New York State.

      "This is an excellent opportunity for us to strengthen our position within
the Northern  Finger Lakes region," said Mark Tryniski,  Community Bank System's
President and Chief Executive Officer.  "While we already have a strong presence
within both of these counties,  this transaction  allows us to nearly double our
market share within a region that has been  particularly  productive for us over
the past  couple of years from a  loan-generation  perspective.  We not only see
this  as an  attractive  region  economically  and  demographically,  but we are
equally  pleased to be gaining a group of customers who have not  previously had
access to the breadth of banking and financial services products we offer."




      Jerry Zehr, Ontario National Bank's President and Chief Executive Officer,
remarked,  "Our entire Board of Directors is particularly  pleased to have found
such an ideal  merger  partner as Community  Bank System for our  company.  This
organization  has a  tremendous  track  record  of  growth  and  success,  and a
wonderful set of  community-based  values. We are very happy to be able to place
this  organization in such capable hands. The Board expects Community Bank, N.A.
will be a great fit and provide  sustainable  benefits  for our  customers,  our
employees and the communities we serve."

      Janney  Montgomery Scott LLC served as financial advisor to Community Bank
System,  Inc.;  Sandler O'Neill + Partners,  L.P. served as exclusive  financial
advisor and provided a fairness  opinion to ONB  Corporation in connection  with
the transaction. Legal counsel for ONB Corporation is Harter Secrest & Emery LLP
and for Community Bank System, Inc. is Bond, Schoeneck & King, PLLC.

      Community  Bank System,  Inc.  (NYSE:  CBU) is a  registered  bank holding
company based in DeWitt,  N.Y. CBU's  wholly-owned  banking  subsidiary has $4.1
billion in assets and approximately  130 customer  facilities across Upstate New
York, where it operates as Community Bank, N.A., and Northeastern  Pennsylvania,
where it operates as First Liberty Bank & Trust. For further  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.



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