EXHIBIT 99.1

FOR IMMEDIATE RELEASE               COMPANY CONTACT:  Paul A. Miller
                                                 (978)  725-7555

                                 LSB CORPORATION

                       BANKRUPTCY TRUSTEE PROPOSES INTERIM
                         DISTRIBUTION TO BANK SUBSIDIARY

NORTH ANDOVER, MA, -- (BUSINESS WIRE) - FEBRUARY 26, 2004 - LSB Corporation,
(the "Corporation" or the "Company") (NASDAQ-LSBX), reports that the Bankruptcy
Trustee in a case in which the Company's wholly owned subsidiary, Lawrence
Savings Bank (the "Bank"), is a secured creditor, filed a motion seeking
Bankruptcy Court approval to make an interim distribution to the creditors.
After payment to one other creditor and reserves for anticipated taxes and
administrative costs, the Trustee has proposed to make an interim distribution
to the Bank of approximately $2.6 million. The Bank has agreed to return any of
the interim distribution as would be necessary to pay additional taxes imposed
on the bankruptcy estate in the event reserves set aside for taxes are
insufficient.

The amount of the proposed distribution has not previously been recognized in
the Company's Consolidated Financial Statements. The diluted earnings per share
impact of the proposed interim distribution is approximately $0.37 per share
based on estimated average shares outstanding for the first quarter of 2004.
This impact will be recognized in the Company's reported financial results when
the proposed interim distribution is approved by the Bankruptcy Court.

Additional background information regarding the matter follows:

The pendency of this matter was noted in the Company's Consolidated Financial
Statements as of and for the period ended December 31, 2002 and the Company's
10Q Quarterly Report for the period ended September 30, 2003. The Bank was
awarded a $4.2 million judgment against the debtor in 1997. On February 13,
2002, the debtor filed a petition in bankruptcy under Chapter 7 of the
Bankruptcy Code. Post-judgment interest calculated from the date of judgment to
the date of the bankruptcy filing is approximately $1.9 million. Collection of
any remaining balance beyond the amount of the proposed interim distribution is
substantially uncertain and is not susceptible to meaningful estimation at this
time.

This press release may contain certain statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended. Such statements
are not historical facts and include expressions of management's expectations at
a specific point in time regarding future actions, relationships, structures,
decisions and conditions. Such expectations may or may not be realized,
depending on a number of variable factors, including but not limited to, the
exercise of judicial discretion, the identification of additional creditors,
errors in the Bankruptcy Trustee's estimation of taxes and or administrative
expenses, or the reversal or modification of completed sales of bankruptcy
assets. As a result of such risks and uncertainties, the Company's actual
results may differ materially from such forward-looking statements. The Company
does not undertake, and specifically disclaims any obligation to publicly
release revisions to any such forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances after the
date of such statement.



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