DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. Reports May Sales ABILENE, Kan., June 3 /PRNewswire-FirstCall/ -- Duckwall-ALCO Stores, Inc. (NASDAQ:DUCK), a leading regional retailer operating 263 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 May 30, 2004 (fiscal month of May) increased approximately 0.9% to $36.8 million, compared with $36.4 million in the prior-year month. Same-store sales increased approximately 0.5% for the month. ALCO stores, which generate approximately 92% of the Company's total revenues, recorded a 0.2% same-store sales increase, while the Duckwall division recorded an increase of 4.0%. Merchandise categories that were particularly strong during May included movies and music, pet supplies, jewelry and accessories, girls wear, electronics and lawn and garden. For the seventeen weeks ended May 30, 2004, total sales increased approximately 2.9% to $139.6 million, versus $135.8 million in the corresponding period of the prior year, while same-store sales decreased approximately 0.1%. The Company opened 1 new ALCO store in Minnesota and closed 1 ALCO and 2 Duckwall stores during the month of May 2004. Approximately 7 new ALCO stores and 2 new Duckwall stores are expected to open during the current fiscal year. Duckwall-ALCO Stores, Inc. is a leading regional retailer that operates 263 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 discount chains 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-looking statements 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 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. 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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