99 Cents Only Stores Announces Effective January 1, 2003 It Will Implement Slotting Allowances on All New Items.

Business Editors

COMMERCE, Calif.--(BUSINESS WIRE)--Dec. 17, 2002

99 Cents Only Stores(R) (NYSE:NDN) announces effective January 1, 2003 it will begin paying a slotting allowance to all of its vendors for every new item purchased. The slotting allowance will be issued in the form of a 99 Cents Only Stores gift certificate.

Rachel Heath, 99 Cents Only Stores Vice President of Purchasing said, "Because of increasing costs and the competitive nature of our industry, and after years of resisting implementing any slotting allowances, we have decided to introduce the 99 Cents Only Stores' version of a slotting allowance. In doing so we will pay our vendors with a 99 Cents Only Stores gift certificate for any new product purchased for sale at 99 Cents Only Stores(R). This allowance will be paid to our suppliers using a 99 Cents Only Stores gift certificate good for any item in the entire store!"

99 Cents Only Stores(R) is the nation's oldest existing one-price retailer. 99 Cents Only Stores(R) emphasizes name-brand consumables at an excellent value, in its 149 clean, attractively merchandised stores located in California, Nevada and Arizona. Two new stores are opening in California this Thursday, December 19, in Stockton and Yucaipa. The company's New York Stock Exchange symbol is NDN.

Note to Editors: 99 Cents Only Stores(R) news releases are available at www.99only.com.