BCSB BANKCORP, INC.


                       PRESS RELEASE
    FOR RELEASE THURSDAY, AUGUST 26, 1999 AT 4:00 P.M.

               For More Information Contact
                       David Meadows
               Baltimore County Savings Bank
                      (410) 256-5000

                    BCSB BANKCORP, INC.
                        ANNOUNCES
                STOCK REPURCHASE PROGRAM

     Baltimore, Maryland...

     BCSB Bankcorp, Inc. announced that it is commencing a stock
repurchase program to acquire up to 320,124 shares of the
Corporation's common stock, which represents approximately 5% of
the Company's outstanding shares of common stock, in part to
fund stock plans approved by the stockholders at a Special
Meeting held on July 15, 1999.  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.

     Gary C. Loraditch, President of the Corporation, stated
that the Board of Directors has authorized the repurchase
program, which is expected to be completed within twelve months.
Mr. Loraditch explained that the Board of Directors considers
the Corporation's common stock to be an attractive investment.
It is expected that a reduction in the amount of the
Corporation's outstanding stock would have the effect of
increasing the Corporation's per share book value, earnings and
return on equity.

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

     This press release contains statements that are
forward-looking, as that term is defined by the Private
Securities Litigation Act of 1995 or the Securities and Exchange
Commission in its rules, regulations, and releases.  The Company
intends that such forward-looking statements be the subject to
the safe harbors created thereby.  All forward-looking
statements are based on values and the impact of interest rates
on financing.  Accordingly, actual results may differ from those
expressed in the forward-looking statements, and the making of
such statements should not be regarded as a representation by
the Company or any other person that results expressed therein
will be achieved.