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 AND 5% STOCK DIVIDEND


Berwick, Pennsylvania -- OCTOBER 31, 2006 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, reported net income of $1,503,000 for the
quarter ending September 30, 2006, as compared to $1,804,000 for
the third quarter of 2005, and $1,459,000 for the second quarter
of 2006.  For the nine months ending September 30, 2006, net
income was $4,528,000 as compared to $5,256,000 for the first
nine months of 2005.

Earnings per share amounted to $1.04 for the nine months ending
September 30, 2006, a decrease of 13.3% from the $1.20 reported
in the first nine months of 2005.  Cash dividends per share
amounted to $.66 for the nine months ending September 30, 2006,
an increase of 10.0% from the $.60 paid in the first nine months
of 2005.  Annualized return on assets and return on equity were
1.16% and 11.54%, respectively, for the first nine months ending
September 30, 2006.  The reduction in earnings was a result of
lower net interest income due to a flatten yield curve and
compression in the net interest margin.  The reduced net interest
income was partially offset by tighter expense control, a lower
loan loss provision, and higher non interest revenue.

The Board of Directors of First Keystone Corporation approved a
5% stock dividend payable on December 5, 2006 to shareholders of
record on November 14, 2006.

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:  RBC Dain Rauscher,
      800-223-4207; 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.


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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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