PRESS RELEASE

BOSTONFED BANCORP, INC. ANNOUNCES THE APPOINTMENT OF RICHARD J. CATURANO AS
DIRECTOR OF THE COMPANY AND SUBSIDIARY BANK
Wednesday, March 3, 2004

Burlington,  Mass., - BostonFed  Bancorp,  Inc. (AMEX - BFD) (the "Company") the
parent of Boston Federal Savings Bank (the "Bank"), a federally-chartered  stock
savings bank, announced today that at the Board Meetings of the Company and Bank
held on February 26, 2004,  the Boards were expanded to nine (9) members and Mr.
Richard J.  Caturano  was elected to serve on both  Boards,  effective  March 1,
2004. David F. Holland, Chairman and CEO said, "We are extremely pleased to have
such an  outstanding  individual  joining our Boards.  He will bring a wealth of
knowledge and business  skills,  particularly  his  financial  expertise for the
Audit and Compliance Committee, to help guide the Company and the Bank."

Mr.  Richard  J.  Caturano,  51 years old,  is a  Certified  Public  Accountant,
President and co-founder of Vitale, Caturano & Company, P.C. ("VCC"). He holds a
Master of Science  degree in Taxation as well as a Bachelor of Science degree in
Accounting from Bentley  College.  VCC has 200 employees and is currently ranked
#52 of the Top 100 CPA  firms  in the  country.  Mr.  Caturano  is the  managing
partner of VCC and is a member of the firm's executive committee.  In October of
2003, ACCOUNTING TODAY named Mr. Caturano as one of the top 100 most influential
people in  accounting.  He is a member of the  American  Institute  of Certified
Public  Accountants,  chairman of its Executive Committee for Partnering for CPA
Practice Success and President Elect of the  Massachusetts  Society of Certified
Public Accountants.  Additionally, Mr. Caturano is on the Board of Directors for
the National Foundation for Teaching Entrepreneurship, New England, and Managing
Director of the VCC Foundation.


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