[CENTRAL BANCORP, INC. LETTERHEAD]


                    N E W S  R E L E A S E


Contact:  Gladys N. Partamian       For Release:  IMMEDIATELY
          Vice President
          (617) 628-4000


                    CENTRAL BANCORP, INC.,
             ANNOUNCES STOCK REPURCHASE PROGRAM


     SOMMERVILLE, MASSACHUSETTS, April 8, 1999 - Central
Bancorp, Inc. (NASDAQ:  CEBK) announced today that it is
commencing a stock repurchase program to acquire up to 98,350
shares of the Corporation's common stock, which represents
approximately 5% of the outstanding common stock.  The program
will be dependent upon market conditions and there is no
guarantee as to the exact number of shares to be repurchased by
the Corporation.

     John D. Doherty, President of the Corporation, stated that
the Board of Directors has authorized the repurchase program,
which is expected to be completed within six (6) months.  Mr.
Doherty explained that the Board of Directors considers the
Corporation's common stock to be an attractive investment.  In
addition, it is expected that a reduction in the amount of the
Corporation's outstanding stock will have the effect of
increasing the Corporation's per share earnings.

     According to Mr. Doherty, the repurchases generally will
be effected through open market purchases, although he did not
rule out the possibility of unsolicited negotiated transactions
or other types of repurchases.

     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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