<Page>1

FOR IMMEDIATE RELEASE

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


                    CENTRAL BANCORP, INC. DECLARES QUARTERLY
                           COMMON STOCK CASH DIVIDEND;
                       DIVIDEND REDUCED TO $0.05 PER SHARE

      SOMERVILLE, MASSACHUSETTS, April 16 2009 -- Central Bancorp, Inc. (NASDAQ
Global Market: CEBK) (the "Company"), the parent company of Central Co-operative
Bank (the "Bank"), today announced that the Company's Board of Directors has
declared a quarterly common stock dividend of $0.05 per share payable on or
about May 15, 2009 to stockholders of record on May 1, 2009. The $0.05 dividend
represents a $0.13 decrease from the Company's previous quarterly cash dividend.

      "We are pleased to continue to be able to pay a dividend to our common
stockholders as we have done for the past 50 quarterly periods," said John D.
Doherty, Chairman and Chief Executive Officer of the Company and the Bank.
"However, while the Company and the Bank remain well-capitalized under all
applicable regulatory requirements, the Company's Board of Directors has
determined that reducing the Company's dividend at this point in time is prudent
to preserve capital in light of the recent economic developments in the
financial services industry and the economy in general."

      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 standalone 24-hour automated teller machine in
Somerville.

      This press release may contain certain forward-looking statements, which
are based on management's current expectations regarding economic, legislative
and regulatory issues that may impact the Company's earnings in future periods.
Factors that could cause future results to vary materially from current
management expectations include, but are not limited to, the potential impact of
the Company's participation in the TARP Capital Purchase Program, general
economic conditions, changes in interest rates, deposit flows, real estate
values and competition, changes in accounting principles, policies or
guidelines, changes in legislation or regulation, and other economic,
competitive, governmental, regulatory and technological factors affecting the
Company's operations, pricing, products and services.