Exhibit 99.1

FOR IMMEDIATE RELEASE

                                                    BANK CONTACT: PAUL A. MILLER
                                                                  (978) 725-7555





                                 LSB CORPORATION
                              DIVIDEND YIELD 3.30%

NORTH ANDOVER, Mass. -- (MARKET WIRE) -- July 29, 2005, LSB Corporation, (NASDAQ
- LSBX), today announced the Board of Directors of LSB Corporation declared a
dividend to shareholders on July 28, 2005. The Board voted to pay a cash
dividend of $0.14 per share on its outstanding shares of common stock payable on
August 25, 2005 to shareholders of record at the close of business on August 11,
2005. This represents a 3.30% dividend yield based on the stock price $16.95 at
the close of business on July 28, 2005.

LSB Corporation is the parent holding company of its wholly-owned subsidiary
Lawrence Savings Bank located in North Andover, Massachusetts, an Equal Housing
Lender and Member, FDIC/Depositors Insurance Fund.