For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE

                     FIRST KEYSTONE ANNOUNCES
                 BRANCH OFFICE PURCHASE APPROVAL


Berwick, Pennsylvania - December 26, 2003 - The First National
Bank of Berwick, subsidiary of First Keystone Corporation (OTC
BB: FKYS), has received regulatory approval to purchase the fixed
assets and assume certain liabilities of the Danville,
Pennsylvania office of First Federal Bank, Hazleton, PA.

The branch will open as a First National Bank of Berwick office
effective January 2, 2004 and is located at 1519 Bloom Rd.,
Danville, PA.

The First National Bank of Berwick, founded in 1864, presently
operates 10 full service offices in Columbia (5), Luzerne (4),
and Montour (1) Counties providing banking and trust services.

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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