For Further Information Contact:

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



                           Exhibit 99.1


                          PRESS RELEASE


              FIRST KEYSTONE CORPORATION ANNOUNCES
                      THIRD QUARTER DIVIDEND


Berwick, Pennsylvania - August 31, 2007 - First Keystone
Corporation (OTC BB: FKYS), parent company of First Keystone
National Bank, declared a $.22 per share quarterly cash dividend
to shareholders of record as of September 11, 2007, payable
September 30, 2007.  This represents a 4.8% increase in the third
quarter dividend over the $.21 per share paid in September 2006.

Total cash dividends for the first three quarters of 2007 amounts
to $.66 per share as compared to $.63 for the first three
quarters of 2006, an increase of 4.8%.

First Keystone National Bank 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:  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 First Keystone National Bank or its
parent company, First Keystone Corporation, please contact J.
Gerald Bazewicz at 570-752-3671, extension 172.





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