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

      The dividend represents the Company's 41st 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 nine 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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