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 EARNINGS Berwick, Pennsylvania - July 29, 2004 - First Keystone Corporation (OTC BB: FKYS), parent company of The First National Bank of Berwick, reported net income of $1,788,000 for the quarter ending June 30, 2004, as compared to $1,857,000 for the second quarter of 2003. For the six months ending June 30, 2004, net income was $3,644,000 as compared to $3,635,000 for the first six months of 2003, an increase of $9,000. Earnings per share increased to $.83 for the six months ending June 30, 2004, an increase of 1.2% over the $.82 reported in the first six months of 2003. Annualized return on assets and return on equity were 1.49% and 13.80%, respectively, for the first six months ending June 30, 2004. Total assets increased to $488,923,000 as of June 30, 2004, an increase of 5.3% over 2003. In addition, total deposits increased $9,412,000 to $361,550,000 as of June 30, 2004. Cash dividends paid for the first half of 2004 were $.35 as compared to $.32 for the six months ending June 30, 2003, an increase of 9.4%. The First National Bank of Berwick, an independently owned community bank since 1864, presently 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; F. J. Morrissey & Co., 800-842-8928; 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. -5- 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. -6-