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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 FBHHvaSS/snE9nRxP1EZ+Q==

<SEC-DOCUMENT>0001181431-04-005159.txt : 20040129
<SEC-HEADER>0001181431-04-005159.hdr.sgml : 20040129
<ACCEPTANCE-DATETIME>20040129123532
ACCESSION NUMBER:		0001181431-04-005159
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040121
FILED AS OF DATE:		20040129

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SUSQUEHANNA BANCSHARES INC
		CENTRAL INDEX KEY:			0000700863
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				232201716
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		26 N CEDAR ST
		CITY:			LITITZ
		STATE:			PA
		ZIP:			17543
		BUSINESS PHONE:		7176264721

	MAIL ADDRESS:	
		STREET 2:		26 NORTH CEDAR ST
		CITY:			LITITZ
		STATE:			PA
		ZIP:			17543

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			FREEMAN OWEN O JR
		CENTRAL INDEX KEY:			0001183021

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10674
		FILM NUMBER:		04551382

	BUSINESS ADDRESS:	
		STREET 1:		C/O SUSQUEHANNA BANCSHARES, INC
		STREET 2:		26 N CEDAR ST
		CITY:			LITITZ
		STATE:			PA
		ZIP:			17543
		BUSINESS PHONE:		717 626 4721

	MAIL ADDRESS:	
		STREET 1:		0246 ROARING FORK DR
		CITY:			ASPEN
		STATE:			CO
		ZIP:			81611-2239
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd30556.xml
<DESCRIPTION>F4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-01-21</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000700863</issuerCik>
        <issuerName>SUSQUEHANNA BANCSHARES INC</issuerName>
        <issuerTradingSymbol>SUSQ</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001183021</rptOwnerCik>
            <rptOwnerName>FREEMAN OWEN O JR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>SUSQUEHANNA BANCSHARES INC</rptOwnerStreet1>
            <rptOwnerStreet2>26 N CEDAR ST</rptOwnerStreet2>
            <rptOwnerCity>LITITZ</rptOwnerCity>
            <rptOwnerState>PA</rptOwnerState>
            <rptOwnerZipCode>17543</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Susquehanna Bancshares Inc. common stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>25.14</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-01-21</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2250</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-01-21</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-01-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Susquehanna Bancshares Inc. common stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>2250</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Vests one-third at end of years 3, 4, and 5 (1/21/07, 1/21/08, 1/21/09)with the first installment vesting on that date.  Grant made under Susquehanna's Equity Compensation Plan.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Lisa M. Cavage, Attorney-in-Fact for Owen O. Freeman Jr.</signatureName>
        <signatureDate>2004-01-29</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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