[Central Bancorp, Inc. Letterhead ]

Contact:  William P. Morrissey                          For Release: Immediately
          Senior Vice President
          (617) 628-4000



                 CENTRAL BANCORP TO REMAIN INDEPENDENT

     SOMERVILLE,  MASSACHUSETTS,  November  7,  2002  -  Central  Bancorp,  Inc.
(NASDAQ:  CEBK)  announced today that its Board of Directors had determined that
it was in the best  interests  of the  Company  and its  stockholders  to remain
independent. At its first meeting since the 2002 Annual Meeting of Stockholders,
the Board of Directors reviewed the Company's strategic and competitive position
with  financial  advisors  and  determined  that it was not the time to sell the
Company.

     "After   reviewing  the  current  market  and  the  potential   returns  to
stockholders under the Company's current business plan, the board concluded that
this is not the time to sell,"  stated John D.  Doherty,  Chairman,  President &
Chief  Executive  Officer of the Company.  "The Board of Directors  has directed
management  to pursue our current  business plan under which we will continue to
build our franchise as an independent community bank."

     Central  Bancorp  also  announced  that John D. Doherty had been elected as
Chairman of the  Company's  Board,  in addition to his  positions as President &
Chief Executive Officer. Paul Bulman, Marat Santini and John Gilgun were elected
as directors of Central Bank, the Company's principal subsidiary

     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.


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|    This report may contain certain forward-looking statements, which         |
|    are  based  on  management's   current   expectations   regarding         |
|    economic,  legislative and regulatory  issues that may impact the         |
|    Company's  earnings in future  periods.  Factors that could cause         |
|    future  results  to  vary  materially  from  current   management         |
|    expectations  include,  but are not limited to, general  economic         |
|    conditions, changes in interest rates, deposit flows, real estate         |
|    values  and  competition;   changes  in  accounting   principles,         |
|    policies or guidelines; changes in legislation or regulation; and         |
|    other  economic,   competitive,   governmental,   regulatory  and         |
|    technological   factors   affecting  the  Company's   operations,         |
|    pricing, products and services.                                           |
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