FOR IMMEDIATE RELEASE                                   May 14, 2003

Contact:      Amy L. Timmerman, AVP, Investor Relations - 781-221-6396
              John A. Simas, EVP and CFO - 781-221-6307
              FAX: 781 221-7594

BOSTONFED BANCORP, INC. ANNOUNCES THE MERGER OF BROADWAY NATIONAL BANK WITH
BOSTON FEDERAL SAVINGS BANK.

Burlington,  MA - BostonFed  Bancorp,  Inc.  (AMEX - BFD) (the  "Company"),  the
parent of Boston Federal Savings Bank, a federally-chartered  stock savings bank
("BFSB"),  and Broadway  National  Bank, a national  chartered  commercial  bank
("Broadway"),  announced today that each of BFSB and Broadway's respective Board
of Directors and the Company,  as sole stockholder of each of BFSB and Broadway,
approved the merger of Broadway with and into BFSB (the "Merger"). The two banks
have been  affiliated  with each  other for the past six years and the merger of
the banks is  expected  to result in  expanded  products  and  services  for the
customers of Broadway and greater convenience to customers of both institutions.
Subject to  customary  regulatory  approvals,  the Merger is  anticipated  to be
effective in the fall of 2003.

As of the effective date of the Merger,  the separate  corporate legal existence
of Broadway will be discontinued  and be  consolidated  into that of BFSB as the
surviving  bank of the Merger.  The two  full-service  offices of Broadway  will
continue in existence  under the name BFSB.  The Merger will enhance the ability
of the enlarged BFSB to serve  customers and attract  borrowers,  depositors and
employees.

Among other  benefits,  the  Company  anticipates  that the Merger will  benefit
customers and  communities by creating a more  convenient  and efficient  branch
network  available  to  customers of both banks;  increasing  certain  operating
efficiencies of the combined BFSB and Broadway; and permitting the combined bank
to continue strengthening commitments to meet community needs.

This report may contain certain forward-looking  statements,  which are based on
management's current expectations.  Generally, verbs in the future tense and the
words, "believe", "expect", "anticipate", "intends", "opinion", "potential", and
similar expressions identify  forward-looking  statements.  The Company's actual
results could differ  materially from those management  expectations,  including
unforeseen integration problems. Factors that could cause future results to vary
from current management  expectations  include, but are not limited to, delay in
or denial of regulatory approvals, general economic conditions,  legislative and
regulatory  changes,  monetary  and fiscal  policies of the federal  government,
changes in tax policies,  rates and regulations of federal,  state and local tax
authorities, changes in interest rates, deposit flows, the cost of funds, demand
for loan products,  demand for financial services,  competition,  changes in the
quality or composition of the Company's loan and investment portfolios,  changes
in  accounting   principles,   policies  or  guidelines,   and  other  economic,
competitive,  governmental and  technological  factors and the effects of war or
terrorist  activities  affecting the Company's  operations,  markets,  products,
services,  prices  and  litigation.  These  risks  and  uncertainties  should be
considered in evaluating  forward-looking  statements and undue reliance  should
not be placed on such statements. Further information concerning the Company and
its business,  including  additional  factors that could  materially  affect the
Company's  financial  results,  is included in the  Company's  filings  with the
Securities  and  Exchange  Commission.  The  Company  does  not  undertake,  and
specifically  disclaims any  obligation,  to publicly  release the result of any
revisions, which may be made to any forward-looking statements to reflect events
or circumstances  after the date of such statements or to reflect the occurrence
of anticipated or unanticipated events.