EXHIBIT 99.1

FOR IMMEDIATE RELEASE                             BANK CONTACT: JEFFREY W. LEEDS
                                                                    978-725-7605

                                 LSB CORPORATION
                INTERIM DISTRIBUTION RECEIVED BY BANK SUBSIDIARY

NORTH ANDOVER, MA, -- (BUSINESS WIRE) - JUNE 15, 2004 - LSB Corporation, (the
"Corporation" or the "Company") (NASDAQ-LSBX), reports the receipt of $2.5
million on a U.S. Bankruptcy Judge's Order on the Trustee's Motion for
authorization to make an interim distribution in a case in which the Company's
wholly owned subsidiary, Lawrence Savings Bank (the "Bank"), is a secured
creditor. The $2.5 million distribution has been recorded as income by the Bank
on June 15, 2004. 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 expenses and taxes are insufficient. The
Company first reported the Bankruptcy Trustee's Motion seeking authorization
from the U.S. Bankruptcy Judge for an interim distribution to creditors in a
press release dated February 26, 2004.

The amount of the interim distribution has not previously been recognized in the
Company's Consolidated Financial Statements. The diluted earnings per share
impact of the interim distribution is approximately $0.35 per share based on
average dilutive shares outstanding for March 31, 2004.

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, 2003 and 2002, and in the Company's Form
10Q Quarterly Report for the period ended March 31, 2004 and 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 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.



                                       5