For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE


                         FIRST KEYSTONE ANNOUNCES
                      THIRD QUARTER EARNINGS

Berwick, Pennsylvania - October 29, 2004 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, reported net income of $1,790,000 for the
quarter ending September 30, 2004, as compared to $1,834,000 for
the third quarter of 2003.  For the nine months ending September
30, 2004, net income was $5,434,000 as compared to $5,469,000 for
the first nine months of 2003.

Earnings per share were $1.24 for the nine months ending
September 30, 2004, the same as reported in the first nine months
of 2003.  Annualized return on assets and return on equity were
1.47% and 13.80%, respectively, for the first nine months ending
September 30, 2004.

President J. Gerald Bazewicz reported, "The financial results
were accomplished despite an increase of $600,000 in the
provision for loan losses for the period ending September 30,
2004, as compared to September 30, 2003.  The increase in the
provision for loan losses was to maintain an allowance for loan
losses at a level which management considers its best estimate of
known and probable inherent losses since a large commercial
credit was recently put on non-accrual status."

Total assets increased to $497,599,000 as of September 30, 2004,
an increase of 4.0% over 2003.  In addition, total deposits
increased $10,805,000 to $363,276,000 as of September 30, 2004.
Cash dividends paid for the first three quarters of 2004 were
$.53 as compared to $.48 for the first three quarters of 2003, an
increase of 10.4%.

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


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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.

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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