Mystic Financial, Inc. Announces Cash Dividend.

Business Editors

MEDFORD, Mass.--(BUSINESS WIRE)--Jan. 14, 2004

Mystic Financial, Inc. (Nasdaq: MYST) (the "Company"), the holding company for Medford Co-operative Bank (the "Bank"), declared a quarterly cash dividend on its common stock of ten cents ($0.10) per share for stockholders of record at the close of business on January 30, 2004. The dividend is payable on February 13, 2004.

Mystic Financial, Inc. is the holding company for Medford Co-operative Bank, a Massachusetts chartered stock co-operative bank established in 1886. The Bank has seven banking offices in Medford, Arlington, Lexington, Bedford and Malden, Massachusetts. The Company had $438.0 million in assets as of September 30, 2003. Press releases and SEC Filings can be viewed on the internet at our website www.medfordcoopbank.com.

Statements contained in this news release which are not historical facts, contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company or the Bank does not undertake to update any forward- looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company or the Bank.