For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE


                   FIRST KEYSTONE CORPORATION DECLARES
                      FIRST QUARTER DIVIDEND


Berwick, Pennsylvania   March 1, 2004 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, declared a $.26 per share quarterly cash
dividend to shareholders of record as of March 16, 2004, payable
March 31, 2004.

This is an 8.3% increase in the first quarter dividend over the
$.24 per share paid in March 2003.

The First National Bank of Berwick now operates 11 full service
offices in Columbia (5), Luzerne (4), and Montour (2) 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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