EXHIBIT 99.1

                              FOR IMMEDIATE RELEASE

        VSB Bancorp, Inc. Announces Acceleration of Stock Option Vesting


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

Staten Island, New York, December 23, 2005 - VSB Bancorp, Inc. (the "Company")
announced today that its stock option committee and the full Board of Directors
approved the accelerated vesting of all currently outstanding unvested stock
options ("Options") to purchase shares of common stock of the Company. By
accelerating the vesting of these Options, the Company estimates that
approximately $169,000 of future compensation expense, net of taxes, will be
eliminated.

Options to purchase 53,499 shares of the Company's common stock, which would
otherwise have vested from time to time over the next four years, became
immediately exercisable as a result of this action. The number of shares and
exercise prices of the Options subject to the acceleration are unchanged. The
remaining terms for each of the Options granted remain the same. The
acceleration is effective as of December 13, 2005. The acceleration will not
have the effect of changing the status of any option for federal income tax
purposes from an incentive stock option to a non-qualified stock option.

The accelerated Options included 8,000 Options held by executive officers,
28,000 Options held by non-employee directors and 17,499 Options held by other
employees. The Company's closing stock price was $20.25 per share on the date of
accelerated vesting and the weighted average exercise price of the accelerated
options is $21.18.

The decision to accelerate the vesting of these options, which the Company
believes is in the best interest of its stockholders, was made primarily to
reduce non-cash compensation expense that would have been recorded in its income
statement in future periods upon the adoption of Financial Accounting Standards
Board Statement No. 123R (Share-Based Payment) in January 2006.

Since the Company currently accounts for its stock options in accordance with
Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees ("APB No. 25"), it will report compensation expense related to the
affected options for disclosure purposes only in its fourth quarter 2005
financial statements.

About VSB Bancorp, Inc.

The Company is a holding company that owns all of the capital stock of Victory
State Bank, a New York chartered commercial bank that conducts business from its
main office and four branches located in Staten Island, New York. Two additional
branches in Staten Island are expected to be opened in 2006.


This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995 as amended, and is including this statement for purposes of these
safe harbor provisions. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies and expectations of the
Company, are generally identifiable by use of the words "believe," "expect,"
"intend," "anticipate," "estimate," "project," or similar expressions.

The Company's ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a material adverse
affect on the operations and future prospects of the Company and its
wholly-owned subsidiaries include, but are not limited to, changes in: interest
rates; general economic conditions; legislative/regulatory provisions; monetary
and fiscal policies of the U.S. Government, including policies of the U.S.
Treasury and the Federal Reserve Board; the quality of composition of the loan
or investment portfolios; demand for loan products; deposit flows; competition;
demand for financial services in the Company's market area; and accounting
principles, policies, and guidelines. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue reliance should
not be placed on such statements. Further information concerning the Company and
its business, including additional factors that could materially affect the
Company's financial results, is included in the Company's filings with the
Securities and Exchange Commission.