99 Cents Only Stores Reports Earnings per Share of 40 Cents for the Fourth Quarter Ended Dec. 31, 1998, and Earnings per Share of $1.09 for the Year.

CITY OF COMMERCE, Calif.--(BUSINESS WIRE)--March 9, 1999--

The Company Reports Net Income and Earnings per Share

for the Year Ended Dec. 31, 1998, Increased

40.9 Percent and 34.5 Percent, Respectively

99 Cents Only Stores(R) (NYSE:NDN) reported record net income for the quarter ended Dec. 31, 1998, of $10.1 million on record net sales of $110.7 million, compared with net income of $6.2 million on net sales of $67.3 million in 1997. This represents a 63.3 percent increase in net income.

Earnings per share were 40 cents in the fourth quarter of 1998 on 25.3 million weighted average number of common shares outstanding, compared with earnings per share of 26 cents in the fourth quarter of 1997 on 23.6 million weighted average number of common shares outstanding. This represents a 52.3 percent increase in earnings per share with an additional 1.7 million shares outstanding.

Net sales in the fourth quarter of 1998 increased $43.4 million, or 64.4 percent, over 1997 as previously reported. Included in net sales were $28.7 million of sales for Universal International Inc. Gross margin for the fourth quarter increased to 42.6 percent from 38.8 percent. This change results primarily from an increased retail vs. wholesale sales mix, due to the consolidation of Universal.

Selling, general and administrative expenses for the quarter were 27.8 percent of sales, compared with 23.8 percent in 1997. The consolidation of Universal primarily accounts for this percentage increase. Operating margin for the quarter was 14.8 percent, vs. 15.0 percent in 1997.

Net income for the year ended Dec. 31, 1998, was a record $26.7 million on record net sales of $323.3 million, compared with net income of $19.0 million on net sales of $230.9 million in 1997. This represents a 40.9 percent increase in net income. Net income as a percentage of net sales for the year increased to 8.3 percent from 8.2 percent in 1997.

For the year ended Dec. 31, 1998, earnings per share were $1.09 on 24.6 million weighted average number of common shares outstanding, compared with 81 cents in 1997 on 23.4 million weighted average number of common shares outstanding. This represents a 34.5 percent increase in earnings per share with an additional 1.1 million shares outstanding.

Net sales for the year ended Dec. 31, 1998, increased $92.4 million, or 40.0 percent, over 1997. Gross margin for the year was 38.2 percent of sales, compared with 36.4 percent in 1997. This change is primarily due to an increased retail vs. wholesale sales mix resulting from the consolidation of Universal in the fourth quarter.

Selling, general and administrative expenses were 24.4 percent of sales, compared with 22.9 percent in 1997. Operating margin increased to 13.8 percent from 13.5 percent in 1997.

David Gold, president of the company, said: "We are pleased to announce better-than-expected growth in earnings and net sales in our fourth quarter and for the year. The company expects to open at least 13 net new stores in 1999, including additional stores in San Diego and our initial entry into the Las Vegas, Nevada, market.

"The company currently has six secured locations for new stores, with five additional locations in escrow to acquire the leasehold interests. The next three stores are scheduled to open in Van Nuys, Downey and Pomona, California, within the next month."

99 Cents Only Stores(R), the nation's oldest existing one-price retailer, operates 65 retail stores, all in Southern California; a wholesale division called Bargain Wholesale; and 69 Only Deals and Odd's-N-End's multiprice discount stores through its Universal International Inc. subsidiary, located in the upper Midwest, New York and Texas.

99 Cents Only Stores(R) emphasizes name-brand consumables, priced at an excellent value, in attractively merchandised stores.

This news release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements are inherently unreliable, and actual results may differ. Factors that could cause actual results to differ materially from these forward-looking statements include changes in the competitive marketplace, general economic conditions, factors affecting the retail industry in general, the timing of new- store openings, the ability of the company to acquire inventory at favorable costs, and other factors discussed in the company's filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Note to Editors: 99 Cents Only Stores(R) news releases and information are available on the World Wide Web at htpp://www.businesswire.com/cnn/ndn.htm or via fax by calling 888/835-0099 toll-free. -0-

                         99 CENTS ONLY STORES
                         Statements of Income
           (Amounts in thousands, except per-share amounts)

                                            Three months ended
                                                  Dec. 31,
                                                (Unaudited)
                                          1998              1997
Net sales:
 99 Cents Only Stores               $71,544   64.6%   $57,298   85.1%
 Universal                           28,651   25.9%        --     --
 Bargain Wholesale                   10,479    9.5%    10,013   14.9%
                                    110,674  100.0%    67,311  100.0%
Cost of sales                        63,478   57.4%    41,175   61.2%
 Gross profit                        47,196   42.6%    26,136   38.8%
Selling, general and
 administrative expenses             30,788   27.8%    16,038   23.8%
 Operating income                    16,408   14.8%    10,098   15.0%
Other income (expense), net             302    0.3%       343    0.5%
 Income before minority interest     16,700   15.1%    10,441   15.5%
Minority interest                       (94)  (0.1%)       --     --
 Income before provision for taxes   16,616   15.0%    10,441   15.5%
Provision for income taxes            6,561    5.9%     4,285    6.4%
Net income                          $10,055    9.1%   $ 6,156    9.1%
Basic earnings per share            $  0.41           $  0.27
Diluted earnings per share          $  0.40           $  0.26
Basic shares outstanding             24,730            23,215
Diluted shares outstanding           25,345            23,636

                                                Year ended
                                                  Dec. 31,
                                          1998              1997
Net sales:
 99 Cents Only Stores              $238,868   73.9%  $186,024   80.6%
 Universal                           31,107    9.6%        --     --
 Bargain Wholesale                   53,298   16.5%    44,831   19.4%
                                    323,273  100.0%   230,855  100.0%
Cost of sales                       199,618   61.8%   146,797   63.6%
 Gross profit                       123,655   38.2%    84,058   36.4%
Selling, general and
 administrative expenses             78,994   24.4%    52,839   22.9%
 Operating income                    44,661   13.8%    31,219   13.5%
Other income (expense), net           1,403    0.4%       855    0.4%
 Income before minority interest     46,064   14.2%    32,074   13.9%
Minority interest                    (1,429)  (0.4%)       --     --
 Income before provision for taxes   44,635   13.8%    32,074   13.9%
Provision for income taxes
 (see note)                          17,942    5.5%    13,124    5.7%
Net income                          $26,693    8.3%   $18,950    8.2%
Basic earnings per share            $  1.11           $  0.82
Diluted earnings per share          $  1.09           $  0.81
Basic shares outstanding             24,033            23,177
Diluted shares outstanding           24,562            23,445

                         99 CENTS ONLY STORES
                            Balance Sheets
                        (Amounts in thousands)

                                                         Dec. 31,
                                                    1998         1997
Assets:
 Cash                                           $  4,516      $   882
 Short-term investments                           43,850       26,191
 Accounts receivable, net                          2,605        1,510
 Inventories                                      78,392       43,114
 Other current assets                              2,389          673
  Total current assets                           131,752       72,370
 Property and equipment, net                      45,473       29,441
 Other assets                                     20,898       17,632
  Total assets                                  $198,123     $119,443
Liabilities and shareholders'  equity:
 Current portion of capitalized lease
  obligation                                    $    923     $    704
 Accounts payable                                 13,856        5,534
 Accrued expenses                                  6,804        5,130
 Income taxes payable                                 --          211
  Total current liabilities                       21,583       11,579
 Capitalized lease obligation, net of
  current portion                                  7,337        8,005
 Deferred rent                                     1,750        1,476
 Accrued interest on capitalized lease
  obligation                                       2,690        2,074
  Total long-term liabilities                     11,777       11,555
 Minority interest                                   398           --
 Shareholders' equity                            164,365       96,309
  Total liabilities and shareholders' equity    $198,123     $119,443