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, 2005 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, reported net income of $1,697,000 for the
quarter ending June 30, 2005, as compared to $1,788,000 for the
second quarter of 2004.  For the six months ending June 30, 2005,
net income was $3,452,000 as compared to $3,644,000 for the first
six months of 2004, a decrease of 5.3%.

Earnings per share amounted to $.79 for the six months ending
June 30, 2005, a decrease of 4.8% over the $.83 reported in the
first six months of 2004.  Annualized return on assets and return
on equity were 1.40% and 12.94%, respectively, for the first six
months ending June 30, 2005.  Earnings were adversely affected
because of a tightening of the net interest margin and a decline
in non-interest income.

Total assets increased to $505,254,000 as of June 30, 2005, an
increase of 3.3% over 2004.  In addition, cash dividends paid for
the first half of 2005 were $.40 per share as compared to $.35
per share for the six months ending June 30, 2004, an increase of
14.3%.

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.

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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