HOUSTON, Jan. 5 /PRNewswire/ -- Coastal Bancorp, Inc. (Nasdaq: CBSA)
("Coastal") announced today that it has completed the repurchase of
499,600 shares of its common stock under the September 1, 1998 announced stock
repurchase plan.  The average repurchase price of $15.57 approximates book
value at November 30, 1998.  In addition, on December 21, 1998 the Board of
Directors authorized an additional repurchase plan for up to 500,000 shares of
the outstanding shares of common stock through an open-market repurchase
program and privately negotiated repurchases, if any.  Repurchases will be
made from time to time when deemed appropriate by the Chief Executive Officer
and Chief Financial Officer of Coastal.  The timing and volume of the
repurchase transactions will depend on market conditions.
    "In light of the recent stock price movement, we see this additional
repurchase program as the best use of our cash at the present time and an
opportunity to strengthen our investment in Coastal's future," said Manuel J.
Mehos, Chairman and Chief Executive Officer.
    Coastal Bancorp, Inc., through its wholly-owned subsidiary, Coastal Banc
Holding Company, Inc., owns 100 percent of the voting stock of Coastal Banc
ssb, a Texas-chartered, state savings bank headquartered in Houston.  Coastal
Banc ssb operates 49 branch offices in metropolitan Houston, Austin, Corpus
Christi, the Rio Grande Valley and small cities in the south east quadrant of
Texas.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  The statements contained in this release which are not historical
facts contain forward looking information with respect to plans, projections
or future performance of the Company, the occurrence of which involve certain
risks and uncertainties detailed in the Company's filings with the Securities
and Exchange Commission.

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