For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE

                     FIRST KEYSTONE ANNOUNCES
                 FOURTH QUARTER AND 2006 EARNINGS

Berwick, Pennsylvania - January 31, 2007 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, reported net income of $1,662,000 for the
quarter ending December 31, 2006, as compared to $1,591,000 for
the fourth quarter of 2005, an increase of 4.5%. For the year
ending December 31, 2006, net income decreased to $6,190,000 as
compared to $6,847,000 for 2005.  Return on assets and return on
equity were 1.20% and 11.76%, respectively for the year ending
December 31, 2006.

Earnings per share were $.36 for the fourth quarter of 2006, and
$1.35 for the year ending December 31, 2006, which compares to
$.34 and $1.48 for the fourth quarter and year, respectively in
2005.  Cash dividends paid for 2006 were $.85 as compared to $.78
paid in 2005, an increase of 9.0%.  Per share data was adjusted
to reflect a 5% stock dividend paid December 5, 2006.

President J. Gerald Bazewicz reported, "While we are pleased with
our financial results in 2006, the continued presence of a flat
or inverted yield curve has constrained revenue growth and
presents a challenge.  The tightening of our net interest margin
in 2006 was partially offset by a decrease in our provision for
loan losses and continued excellent control over non-interest
expenses.  The reduction in our provision for loan losses was
primarily a result of a decline in charge offs and continued
satisfactory asset quality."

Total assets and deposits increased to $525,920,000 and
$384,020,000 as of December 31, 2006, an increase of 2.6% and
5.9% respectively over year end 2005.  Loans, net of unearned
income, increased 7.3% to $251,757,000 as of year end 2006.
Stockholders' equity remained very strong at $53,387,000 as of
December 31, 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.


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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; 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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