VSB Bancorp, Inc.
                         Announces a 4 for 3 Stock Split


Contact Name:
Ralph M. Branca
Executive Vice President
(718) 979-1100


Staten Island, New York January 28, 2004. VSB Bancorp, Inc. (OTCBB: VSBN)
announced today a 4 for 3 stock split in the form of a 33 1/3 stock dividend, to
be paid on March 8, 2004 to shareholders of record at the close of business on
February 17, 2004. Shareholders will receive one additional share of VSB
Bancorp, Inc. stock for every three shares held, and cash in lieu of fractional
shares based on the average of the high and low trading price on the record
date, as adjusted for the split.

Merton Corn, President and CEO of VSB Bancorp, Inc., stated "This is our first
stock split since we reorganized into a holding company format in May 2003. We
continue to demonstrate our commitment to enhancing shareholder value by issuing
this 4 for 3 stock split." Mr. Joseph J. LiBassi, VSB Bancorp, Inc.'s Chairman,
stated "Our share price has increased 73% since May 30, 2003. Going back to our
original offering price, VSB Bancorp, Inc. stock price has increased by 300% in
less than seven years."

VSB Bancorp, Inc. is the one-bank holding company for Victory State Bank.
Victory State Bank, a Staten Island based commercial bank, commenced operations
on November 17, 1997. The Bancorp's initial capitalization of $7.0 million was
primarily raised in the Staten Island community. The Bancorp's total equity has
increased to $10.6 million since its inception. The Bank operates four full
service locations in Staten Island, the main office in the Oakwood Heights
Shopping Center, the second on Forest Avenue, the third on Hyatt Street and the
fourth branch on Hylan Boulevard.