Community Savings Bankshares, Inc. Receives Regulatory Approval to Repurchase 527,444 Shares of Common Stock.

NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--Aug. 30, 1999--

Community Savings Bankshares, Inc. ("Bankshares" or the "Company") (Nasdaq:CMSV) announced Monday that it has received regulatory approval from the Office of Thrift Supervision ("OTS") to repurchase up to 5% (527,444 shares) of its issued and outstanding shares of common stock. On July 12, 1999, the Company filed an application for a regulatory waiver with the OTS to repurchase shares of its common stock prior to the one-year anniversary of the Company's completion of its second step conversion (i.e., Dec. 15, 1999).

Repurchases are authorized to be made by the Company from time to time in open-market transactions as, in the opinion of management, market conditions warrant. The repurchased shares will be held as treasury stock and will be available for general corporate purposes.

James B. Pittard, Jr., President and Chief Executive Officer of the Company, stated: "The stock repurchase program reflects management's belief that the current price of the Company's common stock does not adequately reflect the Company's long-term business and earnings prospects. The use of our cash must continue to be balanced with other internal and external investment opportunities while maximizing the use of existing assets and resources to generate shareholder value. The Company is fortunate to have the financial flexibility that allows it to demonstrate its commitment to and confidence in its future prospects."

Bankshares, a Delaware corporation, is the parent holding company for Community Savings, F. A. (the "Association"), a federally chartered stock savings and loan association. Headquartered in North Palm Beach, Florida, the Association serves customers throughout Palm Beach, Martin, St. Lucie and Indian River counties from 20 full-service offices and a loan production office.