For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE

                FIRST KEYSTONE ANNOUNCES INCREASE
                    IN THIRD QUARTER EARNINGS

Berwick, Pennsylvania - OCTOBER 28, 2005 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, reported net income of $1,804,000 for the
quarter ending September 30, 2005, as compared to $1,790,000 for
the third quarter of 2004, and $1,697,000 for the second quarter
of 2005.  For the nine months ending September 30, 2005, net
income was $5,256,000 as compared to $5,434,000 for the first
nine months of 2004, a decrease of 3.3%.

Earnings per share amounted to $1.20 for the nine months ending
September 30, 2005, a decrease of 3.2% from the $1.24 reported in
the first nine months of 2004.  Annualized return on assets and
return on equity were 1.39% and 12.95%, respectively, for the
first nine months ending September 30, 2005.  Earnings were
adversely affected because of a continued tightening of the net
interest margin and a decline in non-interest income, which were
largely offset by a reduction in the provision for loan losses.

Total assets increased to $526,722,000 as of September 30, 2005,
an increase of 5.9% from September 30, 2004.  In addition, cash
dividends paid for the first three quarters of 2005 were $.60 per
share as compared to $.53 per share for the first three quarters
of 2004, an increase of 13.2%.

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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