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                         Exhibit 99.1 - PRESS RELEASE




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                      BOSTONFED BANCORP, INC. ANNOUNCES
                   OTS APPROVAL OF STOCK REPURCHASE PROGRAM

      Boston, Massachusetts, June 12, 1996/PR Newswire/ -- BostonFed Bancorp,
Inc. (AMEX - BFD) (the "Company") announced today that it has received approval
from the Office of Thrift Supervision ("OTS") to implement a program to
repurchase up to 5% of its outstanding common stock, or 329,481 shares. The
Company intends to commence the stock repurchase program as soon as practicable
after the public release of the Company's earnings for the quarter ended June
30, 1996. Pursuant to the stock repurchase program and the OTS' approval, shares
will be purchased by the Company from time to time, depending upon market
conditions, in open market transactions, until such time as 5% of the Company's
currently outstanding shares have been repurchased, provided that the repurchase
program is completed by no later than October 24, 1996. The stock repurchase
program will be the first stock repurchase program undertaken by the Company.

      David F. Holland, President and Chief Executive Officer of the Company
commented, "We believe that the repurchase of the Company's shares will further
enhance shareholder value as such repurchases are anticipated to have a positive
effect on the earnings per share and book value of the remaining shares
outstanding."

      The Company is a savings and loan holding company for the Boston Federal
Savings Bank and is headquartered in Burlington, Massachusetts. As of March 31,
1996, Boston Federal Savings Bank had assets of $678 million and operated eight
offices in and around the Boston area.

CONTACT:    Amy L. Timmerman, Investor Relations, 617-221-6396 or John A. Simas,
Senior Vice President and Chief Financial Officer, 617-221-6307 or FAX:
617-221-7594, BostonFed Bancorp, Inc.



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