For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE


              FIRST KEYSTONE CORPORATION ANNOUNCES
                     SECOND QUARTER DIVIDEND

Berwick, Pennsylvania - May 31, 2006 - First Keystone Corporation
(OTC BB: FKYS), parent company of The First National Bank of
Berwick, declared a $.22 per share quarterly cash dividend to
shareholders of record as of June 13, 2006, payable June 30,
2006.  This represents a 10.0% increase in the second quarter
dividend over the $.20 per share paid in June 2005.

Total cash dividends for the first two quarters of 2006 amounts
to $.44 per share as compared to $.40 for the first two quarters
of 2005, an increase of 10.0%.

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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