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                                                                   NEWS RELEASE


FOR IMMEDIATE RELEASE

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

                    CENTRAL BANCORP, INC. DECLARES QUARTERLY
                           COMMON STOCK CASH DIVIDEND

      SOMERVILLE, MASSACHUSETTS, July 16, 2009 -- Central Bancorp, Inc. (NASDAQ
Global Market: CEBK) (the "Company"), today announced that the Company's Board
of Directors has declared a quarterly common stock dividend of five ($0.05)
cents per share, payable on or about August 21, 2009 to stockholders of record
on August 7, 2009.

      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 standalone 24-hour automated teller machine in
Somerville.