Central Bancorp, Inc., Announces Intention to Implement Third Stock Repurchase Program.

Business/Technology Editors

SOMERVILLE, Mass.--(BUSINESS WIRE)--May 22, 2000

Central Bancorp, Inc. (NASDAQ National Market:CEBK) announced today that it intends to implement its third stock repurchase program, under which it would acquire up to 88,903 shares of its common stock, representing approximately 5% of the shares outstanding at the time of the implementation of the third repurchase program.

The Company expects to implement the third program following the completion of its second stock repurchase program adopted in October 1999, pursuant to which the Company announced it would repurchase up to 93,583 shares over a twelve-month period. Through May 18, 2000, the Company had repurchased 76,100 shares under the second repurchase program. Previously, the Company repurchased 98,350 shares of Common Stock under its first stock repurchase program, which was completed in October 1999. The Company has repurchased a total of 174,450 shares of its Common Stock through May 18, 2000.

Completion of both the second and third stock repurchase programs is dependent upon market conditions and there is no guarantee as to the exact number of shares to be repurchased by the Company. In addition, the timing of stock repurchases is subject to certain regulatory restrictions.

John D. Doherty, President of Central Bancorp, Inc., stated that the Board of Directors has authorized the third stock repurchase program because the Board considers the Company's common stock an attractive investment. In addition, it is expected that a reduction in the amount of the Company's outstanding stock will have the effect of increasing its per-share earnings and book value.

Central Bancorp, Inc., is the holding company for Central Bank, whose legal name is Central Co-operative Bank, a Massachusetts-chartered co-operative bank operating eight full-service banking offices in suburban Boston.