Community Bank System, Inc. Declares Dividend.

SYRACUSE, NY -- Community Bank System, Inc. (NYSE: CBU) announced that its' Board of Directors declared a quarterly cash dividend of $0.22 per share on its' common stock. The dividend will be payable on January 9, 2009 to shareholders of record as of December 15, 2008. Based on the November 19, 2008 closing price of $20.48, the annualized dividend yield on the Company's common stock was 4.3%.

Community Bank System is based in DeWitt, NY, 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, Inc., 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, Inc., a wealth management and advisory firm with offices in Buffalo, NY and North Palm Beach, FL. For more information, visit : www.communitybankna.com or www.firstlibertybank.com.