William P. Morrissey                                                 Immediately
Senior Vice President
(617) 628-4000



                         CENTRAL BANCORP, INC. ANNOUNCES
                  COMPLETION OF FOURTH STOCK REPURCHASE PROGRAM

     SOMERVILLE,  MASSACHUSETTS,  March 26, 2002--Central  Bancorp, Inc. (NASDAQ
National  Market:  CEBK) today announced that it had completed its fourth common
stock buyback  program.  The Board of Directors had authorized the repurchase of
up to 5% of the Company's  outstanding  stock pursuant to the buyback program in
December 2000. A total of 84,458 shares were purchased  under the fourth buyback
program at an  average  cost of $23.78  per  share.  The total  number of shares
purchased  since the first  repurchase  program  was  adopted  in April 1999 are
365,294 at an average cost of $19.56 per share, representing 18.54% of the total
common stock issued and  outstanding  prior to the adoption of the first buyback
program.

     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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