FOR IMMEDIATE RELEASE                                            October 8, 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  RECEIPT OF OTS APPROVAL TO PURCHASE ENCORE
BANK'S SEVEN BRANCH OFFICES

Burlington,  MA - BostonFed  Bancorp,  Inc.  (AMEX - BFD) (the  "Company"),  the
parent of Boston Federal Savings Bank,  ("BFSB"),  a  federally-chartered  stock
savings bank, and Broadway National Bank, a national chartered  commercial bank,
announced today that BFSB received regulatory approval from the Office of Thrift
Supervision ("OTS") to purchase from Encore Bank seven branch offices located in
Belmont,   Lexington,   Needham,   Newton,   Sudbury,   Wellesley   and  Woburn,
Massachusetts. The Company expects to close the transaction on October 24, 2003,
or shortly thereafter.

This press release may contain  statements that are not historical facts and are
considered  forward-  looking  statements  within  the  meaning  of the  federal
securities  laws.  These  statements  are based on  management's  beliefs and on
assumptions made by, and information  currently  available to,  management.  You
should not rely on  forward-looking  statements  because  the  Company's  actual
results may differ  materially  from those  indicated  by these  forward-looking
statements as a result of a number of important factors.  These factors include,
but are not limited to, changes in  legislation,  prevailing  interest rates and
changes  in  economic   conditions.   The  Company   cautions  you  that,  while
forward-looking statements reflect its good faith beliefs when the Company makes
them,  they are not guarantees of future  performance and are impacted by actual
events when they occur after the Company makes such statements.