For Further Information Contact:

                             J. Gerald Bazewicz
                             President and
                             Chief Executive Officer
                             (570) 752-3671



                           Exhibit 99.1


                          PRESS RELEASE

         FIRST KEYSTONE ANNOUNCES SECOND QUARTER DIVIDEND

Berwick, Pennsylvania   May 30, 2003 - First Keystone Corporation
(OTC BB: FKYS), parent company of The First National Bank of
Berwick, declared a $.24 per share quarterly cash dividend to
shareholders of record as of June 10, 2003, payable June 30,
2003.  This is a 20% increase in the second quarter dividend over
the $.20 per share paid in June 2002 (adjusted to reflect a 5%
stock dividend paid August 2002).  With the second quarter
dividend payment, year-to-date cash dividends total $.48 per
share in 2003 as compared to $.40 in the first two quarters of
2002.

The dividend payment continues to reflect the strong earnings
history and excellent capital level of First Keystone
Corporation.

The First National Bank of Berwick now operates 10 full service
offices in Columbia (5), Luzerne (4), and Montour (1) Counties
providing banking and trust services.

Inquiries regarding the purchase of the company's stock may be
made through the following brokers:  Legg Mason Wood Walker,
Inc., 800-888-6673; Janney Montgomery Scott, Inc., 800-526-6397;
Ferris, Baker, Watts, Inc., 800-638-7411; Ryan, Beck and Company,
800-223-8969; and Boenning & Scattergood, Inc., 800-883-8383.

Note:  This press release may contain forward-looking statements
as defined in the Private Securities Litigation Reform Act of
1995.  Actual results and trends could differ materially from
those set forth in such statements due to various factors.  These
factors include operating, legal and regulatory risks; changing
economic and competitive conditions and other risks and
uncertainties.

For more information on The First National Bank of Berwick or its
parent company, First Keystone Corporation, please contact J.
Gerald Bazewicz at 570-752-3671, extension 172.


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