NEWS RELEASE


Contact:  Paul S. Feeley                                For Release: Immediately
          Senior Vice President, Treasurer &
             Chief Financial Officer
          (617) 628-4000


                         CENTRAL BANCORP, INC. DECLARES
                       ITS REGULAR QUARTERLY CASH DIVIDEND

         SOMERVILLE, MASSACHUSETTS, January 19, 2006 - Central Bancorp, Inc.
(NASDAQ:CEBK) announced today that its Board of Directors declared its regular
quarterly cash dividend of eighteen ($0.18) cents per share, payable on February
17, 2006, to stockholders of record as of February 3, 2006.

         The dividend represents the Company's 38th consecutive distribution
since implementing its cash dividend policy in October 1996.

         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, a limited service high school
branch in suburban Boston and a stand alone 24-hour automated teller machine in
Somerville.





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