Exhibit 99.1
                                                     Press Release dated 8-24-06


                     First Litchfield Financial Corporation
                 13 North Street, Litchfield, Connecticut 06759


NEWS RELEASE
For Immediate Release


          First Litchfield Financial Corporation Declares Cash Dividend

Litchfield, Connecticut--August 24, 2006--First Litchfield Financial Corporation
(OTCBB:FLFL)  (the "Company") the holding company for The First National Bank of
Litchfield (the "Bank") declared a quarterly cash dividend of $0.15 per share of
common stock  outstanding  on September 7, 2006 (the Cash Dividend  Record Date)
payable on October 24, 2006.  Transfers of common stock on or after September 5,
2006, shall be ex-dividend.

                              Safe Harbor Statement

Except  for  the  historical  information  in this  news  release,  the  matters
described  herein  are  forward-looking  statements  within  the  meaning of the
Private  Securities  Litigation  Reform Act of 1995.  The  Company  notes that a
variety  of factors  could  cause the actual  results  or  experience  to differ
materially  from the  anticipated  results or other  expectations  described  or
implied  by such  forward-looking  statements  relating  to such  matters as (a)
assumptions  concerning future economic and business conditions and their effect
on the  economy in general  and on the markets in which the Company and the Bank
do business,  and (b) expectations  for increased  revenues and earnings for the
Company and Bank through growth resulting from acquisitions,  attractions of new
deposit and loan  customers and the  introduction  of new products and services.
Such forward-looking  statements are based on assumptions rather than historical
or current facts and, therefore,  are inherently  uncertain and subject to risk.
Such  risks and  uncertainties  that may  affect  the  operations,  performance,
development  and  results of the  Company's  and  Bank's  business  include  the
following: (a) the risk of adverse changes in business conditions in the banking
industry  generally and in the specific markets in which the Bank operates;  (b)
changes in the legislative and regulatory environment that negatively impact the
Company and Bank through increased operating expenses; (c) increased competition
from  other  financial  and  nonfinancial   institutions;   (d)  the  impact  of
technological  advances;  and (e) other risks  detailed from time to time in the
Company's filings with the Securities and Exchange Commission. Such developments
could have an adverse  impact on the Company and the Bank's  financial  position
and results of operation.

                   About The First National Bank of Litchfield

One of the oldest nationally  chartered banks in the country, The First National
Bank of Litchfield  (www.fnbl.com)  has served the  communities of  Northwestern
Connecticut since 1814. Its full-service  banking offices are located in Canton,
Goshen,  Litchfield,   Marble  Dale,  New  Milford,  Roxbury,   Torrington,  and
Washington Depot. The Bank provides  consumer,  commercial and retail investment
and

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insurance  products and services.  In addition,  FNBL  maintains a  full-service
Trust and Wealth Management  division that offers asset management,  custody and
estate settlement services to individuals, non-profits and commercial customers.
Additionally,  the Bank offers  non-deposit  retail investment  products such as
mutual  funds,  annuities and insurance  through its  relationship  with Infinex
Investments, Inc.

Contact: Carroll A. Pereira, CFO
         (860) 567-2674


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