EXHIBIT 99
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PRESS RELEASE

               Gladys N. Partamian                                  Immediately
               Vice President
               (617) 628-4000

                        CENTRAL BANCORP, INC., ANNOUNCES

                         FOURTH STOCK REPURCHASE PROGRAM

     SOMERVILLE,  MASSACHUSETTS,  December  18, 2000 --- Central  Bancorp,  Inc.
(NASDAQ National  Market:  CEBK) announced today that its Board of Directors has
authorized the Company's  fourth stock repurchase  program,  under which it will
acquire  up to 84,458  shares of its common  stock.  This  represents  5% of the
1,689,164 shares of common stock currently issued and outstanding.

     Since the  adoption of the first  buyback  program in April  1999,  Central
Bancorp  has  repurchased  a total of 280,836  shares of its common  stock at an
average cost of $18.29 per share,  representing 14.3% of the common stock issued
and outstanding before the repurchase program was initiated.

     Completion of the fourth stock repurchase  program is dependent upon market
conditions,  and  there is no  guarantee  as to the exact  number of shares  the
Company will  repurchase.  In addition,  the timing of stock  repurchases may be
subject to certain regulatory restrictions.

     John D. Doherty,  President & Chief Executive  Officer of Central  Bancorp,
Inc., noted that the Board of Directors and management  continue to believe that
repurchasing the Company's common stock is an attractive  investment,  primarily
because the stock is trading below its book value, which was $21.76 at September
30,  2000.  Mr.  Doherty  also  indicated  that the  reduction  in the amount of
outstanding stock is anticipated to benefit the Company's  stockholders over the
long term by increasing per-share earnings and book value.

     Central Bancorp, Inc., is the holding company for Central Bank, whose legal
name is Central Co-operative Bank, a  Massachusetts-chartered  co-operative bank
operating eight full-service banking offices in suburban Boston.


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