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TUESDAY, DECEMBER 7, 1999, 4:39 PM EASTERN TIME

COMPANY PRESS RELEASE

SOURCE:  BOSTONFED BANCORP, INC.


BOSTONFED  BANCORP,   INC.  ANNOUNCED  THE  COMPLETION  OF  THE  ACQUISITION  OF
DIVERSIFIED  VENTURES,  INC.,  D/B/A  FORWARD  FINANCIAL  COMPANY,  AND ELLSMERE
INSURANCE AGENCY, INC.


BURLINGTON, Mass., Dec. 7/PRNewswire/ --BostonFed Bancorp, Inc. (AMEX-BFD- news;
the "Company") the parent of Boston Federal Savings Bank, a  federally-chartered
stock savings bank, and Broadway National Bank, a national chartered  commercial
bank  announced  today it  completed  as of the close of business on December 6,
1999, the acquisition of Diversified  Ventures,  Inc.,  d/b/a Forward  Financial
Company,   ("Forward   Financial")  and  Ellsmere  Insurance  Agency,  Inc.,  of
Northborough,  Massachusetts,  pursuant to the Purchase and Sale Agreement dated
August 4, 1999. Forward Financial will become an operating  subsidiary of Boston
Federal  Savings Bank and Ellsmere  will operate as an operating  subsidiary  of
Broadway National Bank.


SOURCE:  BOSTONFED BANCORP, INC.