50-OFF STORES, INC. ANNOUNCES LAWSUIT AGAINST DEFAULTING STOCK PURCHASERS.

SAN ANTONIO--(BUSINESS WIRE)--March 31, 1995--San Antonio based off-price retailer 50-OFF Stores, Inc. reported the recent filing of a lawsuit (50-OFF Stores, Inc. vs. Banque Paribas (Suisse) S.A., Betafid, S.A., Yanni Koutsoubos, Andalucian Villas (Forty Eight) Limited, Arnass Limited, Brocimast Enterprises Ltd., Dennis Morris, Howard White, and Morris & Associates, Cause No. SA-95-CA-0159) in United States District Court in San Antonio against defaulting foreign purchasers in an international offering by the company under Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended. A Regulation S offering of up to 2,000,000 shares of Common Stock was commenced by the company in October 1994 with the assistance of Jefferies International, Ltd. as its selling agent. Two foreign institutional investors did purchase an aggregate of 310,000 shares in such offering in November 1994. The company filed the lawsuit against Banque Paribas (Suisse) S.A., Betafid S.A., three offshore purchaser entities believed to be controlled by them and certain affiliated individuals in connection with the breach by certain of the defendants of their contractual obligation to purchase an aggregate of 1,500,000 shares of the company's Common Stock at $3.65 per share pursuant to November 1994 signed purchase agreements. The lawsuit also includes securities fraud, fraud and conversion claims. The conversion claim relates to actions of the defendants in misappropriating and removing the shares from an escrow account with the purchasers' Toronto attorney, Morris & Associates, even though the defendants have never paid for such shares. The shares had been issued into such escrow account for the purposes of authentication by Chase Manhattan Bank, N.A. on behalf of the purchasers and eventual release to the purchasers upon receipt by Morris & Associates of the proceeds for the shares on behalf of the company. The defendants to date have not responded to the company's demands for either the return of such shares or the agreed upon proceeds. The lawsuit has only recently been filed and discovery has not commenced. The company intends to vigorously prosecute such matter and to pursue all available avenues to obtain all appropriate remedies, including either the agreed upon proceeds for the shares, or the shares themselves, as well as the company's actual and punitive damages.

CONTACT: 50-OFF Stores, Inc.

Charles M. Siegel, 210/805-9300.