DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. Reports September Sales Stock Repurchase Program Continues ABILENE, Kan., Oct. 7 /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 its sales for the five weeks ended October 3, 2004 (fiscal month of September) increased approximately 2.3% to $38.1 million, compared with $37.2 million in the prior-year month. Same-store sales increased approximately 1.1% during fiscal September 2004 when compared with the prior-year period. ALCO stores, which generate approximately 92% of the Company's total revenues, recorded a 0.9% same-store sales increase, while the Duckwall division recorded an increase of 3.4% in same-store sales. Management believes that September sales comparisons with the prior-year period were negatively impacted by higher gasoline prices, which affected consumer discretionary spending in many of the Company's markets. Sales comparisons during the most recent fiscal month benefited from the timing of the Labor Day holiday (fiscal August in 2003 and fiscal September, 2004). Merchandise categories that were particularly strong during September included: consumables, stationery, men's footwear, pet supplies, sporting goods, movies and electronics. For the thirty-five weeks ended October 3, 2004, total sales increased approximately 1.9% to $278.6 million, versus $273.4 million in the corresponding period of the previous fiscal year, while same-store sales decreased approximately 0.1%. During the month of September, 2004, the Company did not open any ALCO or Duckwall stores and closed 2 ALCO stores. Store openings during the first thirty-five weeks of the current fiscal year included 3 new ALCO stores, 2 ALCO Market Place stores (conversions), and 2 new Duckwall stores. Approximately 3 new ALCO stores are scheduled to open during the balance of the fiscal year. Additionally, the Company expects to convert one additional ALCO location to its new "ALCO Market Place" format before the end of the fiscal year. The Company also reported that it has recently completed the repurchase of an additional 5,000 shares of its outstanding common stock, at an average price of $16.00 per share, under 2 previously authorized share repurchase programs. Under those programs, the Company is authorized to repurchase up to 1,411,000 shares, and has now repurchased a total of 1,084,600 shares, which represent in excess of 20% of the outstanding common stock of the Company at the time the repurchase program began. Founded in 1901, 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," "ALCO Market Place," 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. CONTACT: Dick Mansfield Vice President, Finance, Treasurer and Chief Financial Officer 785-263-3350 x286 e-mail: internet home page: http://www.duckwall.com/ or RJ Falkner & Company, Inc., Investor Relations Counsel, at (800) 377-9893 or via e-mail at 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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