NEWS RELEASE



Contact:  Paul S. Feeley                               For Release: Immediately
          Senior Vice President, Treasurer &
          Chief Financial Officer
          (617) 628-4000



                         CENTRAL BANCORP, INC. DECLARES
                       ITS REGULAR QUARTERLY CASH DIVIDEND

         SOMERVILLE, MASSACHUSETTS, January 18, 2007 - Central Bancorp, Inc.
(NASDAQ Global MarketSM:CEBK) announced today that its Board of Directors
declared its regular quarterly cash dividend of eighteen ($0.18) cents per
share, payable on February 16, 2007, to stockholders of record as of February 2,
2007.

         The dividend represents the Company's 42nd consecutive distribution
since implementing its cash dividend policy in October 1996.

         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 nine full-service banking offices, a limited service high school
branch in suburban Boston and a stand alone 24-hour automated teller machine in
Somerville.