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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, July 19, 2007 - 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
August 17, 2007, to stockholders of record as of August 3, 2007.

      The dividend represents the Company's 44th 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.