DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. Reports February Sales ABILENE, Kan., March 4 /PRNewswire-FirstCall/ -- Duckwall-ALCO Stores, Inc. , a leading regional retailer operating 264 full-line discount and hometown variety stores in 21 states in the central portion of the United States, today announced that sales for the four weeks ended February 29, 2004 (fiscal month of February) increased approximately 4.3% to $30.9 million, compared with $29.7 million in the prior-year month. Same-store sales decreased approximately 0.4% for the month. ALCO stores, which generate approximately 93% of the Company's total revenues, recorded a 0.9% same-store sales decrease, while the Duckwall division recorded an increase of 5.3%. Merchandise categories that were particularly strong during February included consumables, health and beauty aids, domestics, intimate apparel, jewelry, infants/toddlers, toys, pet supplies, automotive, appliances, electronics, outdoor living and men's apparel. Sales for the month were unfavorably impacted by extreme winter conditions in some of the Company's markets, a shift in payday due to leap year and softness in higher ticket furniture items and price compression in the industry compared to last year. The Company did not open or close any ALCO or Duckwall stores during the month of February 2004. Approximately 7 new ALCO stores are expected to open during the current fiscal year. Duckwall-ALCO Stores, Inc. is a leading regional retailer that operates 264 full-line discount and hometown variety stores in 21 states in the central portion of the United States under the names "ALCO" and "Duckwall", respectively. The Company's strategy is to target smaller markets not served by other regional or national full-line retail discountchains and provide the most convenient access to retail shopping within each market. Duckwall-ALCO Stores, Inc. is headquartered in Abilene, Kansas, and its common stock is listed on the Nasdaq National Market under the symbol "DUCK". Forward-lookingstatements This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 ("the Act"). Any forward-looking statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments and Company performance. Factors, which could significantly change results, include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's quarterly 10-Q filings and other public documents, copies of which are available from the Company on request. For further information, please contact Dick Mansfield, Vice President, Finance, Treasurer and Chief FinancialOfficer of Duckwall-ALCO Stores, Inc., +1-785-263-3350, ext. 286, ; or RJ Falkner & Company, Inc., Investor Relations Counsel, +1-800-377-9893, , for Duckwall-ALCO Stores, Inc. DATASOURCE: Duckwall-ALCO Stores, Inc. CONTACT: Dick Mansfield, Vice President, Finance, Treasurer and Chief Financial Officer of Duckwall-ALCO Stores, Inc., +1-785-263-3350, ext. 286, ; or RJ Falkner & Company, Inc., Investor Relations Counsel, +1-800-377-9893, , for Duckwall-ALCO Stores, Inc. Web site: http://www.duckwall.com/

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