Susquehanna Bancshares, Inc. : Susquehanna Bancshares Inc. Announces Results of Elections for Merger Consideration in Tower Bancorp Inc. Acquisition

Susquehanna Bancshares, Inc. (Susquehanna) (Nasdaq: SUSQ) today announced the final results of elections made by Tower Bancorp, Inc. (Tower) shareholders regarding the form of merger consideration they will receive as a result of the February 17, 2012, acquisition of Tower by Susquehanna.

Under the merger agreement, Tower shareholders were entitled to elect to receive, for each share of Tower common stock, either 3.4696 shares of Susquehanna common stock or $28.00 in cash. The individual elections made by each shareholder were subject to proration so that $88 million of the aggregate consideration is paid in cash. The election deadline was 5 p.m. Eastern Time on February 15, 2012.

At the effective time of the acquisition, there were 12,112,210.362 shares of Tower stock outstanding. Based on the calculations of the exchange agent for the transaction, American Stock Transfer & Trust Company:

• 10,881,200.414 of the shares, or 90 percent, elected to receive Susquehanna stock
• 245,763.164 of the shares, or 2 percent, elected to receive cash
• 985,246.784 of the shares, or 8 percent, did not make an election

Those Tower shares for which a cash election was made, and those Tower shares for which no valid or timely election was made, will be converted into $28.00 in cash.

Because the aggregate amount of cash requested by Tower shareholders or allocated to Tower shareholders who did not make a timely election was less than $88 million, shareholders electing to receive Susquehanna stock will be prorated and will receive a combination of Susquehanna stock and cash for their Tower shares. The proration will result in a Tower shareholder receiving 3.4696 shares of Susquehanna stock for approximately 82.429769 percent and $28.00 in cash for approximately 17.570231 percent of the Tower shares for which such shareholder elected to receive Susquehanna stock. No fractional shares of Susquehanna stock will be issued; in lieu of fractional shares, Tower shareholders will receive cash.

Questions about individual allocation results should be directed to the shareholder services department at American Stock Transfer and Trust Company at 1-877-248-6417.

Susquehanna Bancshares Inc. is a financial services holding company with assets of $17.5 billion. Its largest subsidiary is Susquehanna Bank, which provides commercial banking services to consumers and businesses through 261 branch offices in Pennsylvania, New Jersey, Maryland and West Virginia. Through Susquehanna Wealth Management, the holding company also offers investment, fiduciary, brokerage, insurance, retirement planning, and private banking services, with approximately $7.4 billion in assets under management and administration. Susquehanna also operates an insurance brokerage and employee benefits company, a commercial finance company and a vehicle leasing company. For more information, please visit www.susquehanna.net.

Susquehanna Bancshares, Inc.
INVESTOR RELATIONS CONTACT:
Abram G. Koser, Vice President, Investor Relations
(717) 625-6305
ir@susquehanna.net
or
MEDIA RELATIONS CONTACT:
Stephen Trapnell, Director of Communication Strategies
(717) 625-6548
communications@susquehanna.net

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