For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE

              FIRST KEYSTONE CORPORATION DECLARES INCREASED
                     FOURTH QUARTER DIVIDEND

Berwick, Pennsylvania - November 29, 2004 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, declared a $.20 per share quarterly cash
dividend to shareholders of record as of December 14, 2004,
payable December 31, 2004.

This is a 17.6% increase in the fourth quarter dividend over the
$.17 per share paid in December 2003.  With the fourth quarter
dividend payment, year to date cash dividends total $.73 per
share in 2004 as compared to $.65 paid in 2003, an increase of
12.3%.

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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