99 Cents Only Stores Reports Record 99 Cents Only Stores Retail Sales of $238.9 Million for the Year Ended Dec. 31, 1998, Up 28.4 Percent Over Last Year.

CITY OF COMMERCE, Calif.--(BUSINESS WIRE)--Jan. 6, 1999--

99 Cents Only Stores Retail Sales for the Fourth Quarter Were

a Record $71.5 Million, Up 24.9 Percent Over Last Year

Total Sales Were a Record $323.3 Million for the Year and a

Record $110.6 Million for the Fourth Quarter

99 Cents Only Stores(R) (NYSE:NDN) reported record total quarterly sales of $110.6 million for the fourth quarter ended Dec. 31, 1998, and record total annual sales of $323.3 million for the year ended Dec. 31, 1998.

This represents an increase of $43.3 million, or 64.4 percent over sales of $67.3 million during the fourth quarter last year and an increase of $92.4 million, or 40.0 percent over sales of $230.9 million during the year ended Dec. 31, 1997.

Retail sales for 99 Cents Only Stores for the quarter ended Dec. 31, 1998, were a record $71.5 million, up 24.9 percent over the same period last year. 99 Cents Only Stores' retail sales for the total year ended Dec. 31, 1998, were a record $238.9 million, up 28.4 percent over last year. New 1998 stores and the full period effect of stores opened in 1997 accounted for the majority of this increase.

For the fourth quarter of 1998, comparable same-store sales for 99 Cents Only Stores increased 5.3 percent over the same period last year. Comparable same store sales for 99 Cents Only Stores, adjusted to give effect for new 99 Cents Only Store openings within a three-mile radius of existing stores, increased 6.3 percent in the fourth quarter.

99 Cents Only Stores comparable store sales for the total year increased 4.3 percent. After giving effect for cannibalization, comparable stores increased 7.6 percent for the year. Comparable same store sales are calculated for stores that have been open for at least a full 15 months.

For 99 Cents Only Stores open the entire 1998 year, the average net sales per saleable square foot was $335. The average net sales per store were approximately $4.1 million. New stores opened in 1997 averaged first-year sales of approximately $4.7 million.

99 Cents Only Stores opened four stores during the fourth quarter of 1998 and a record 13 stores, including two relocations. In addition to the company's existing 64 stores, the company's plan is to open at least 13 new 99 Cents Only Stores in 1999.

Universal International Inc. retail sales in the fourth quarter were $28.9 million. Universal's comparable same store sales for the fourth quarter were 10.4 percent and were 16.8 percent for the year. Universal's sales were not consolidated with 99 Cents Only Stores prior to the completion of the acquisition on Sept. 16, 1998.

Wholesale sales for the quarter and the year ended Dec. 31, 1998, were $10.4 million and $53.2 million, respectively, vs. $10.0 million and $44.8 million for the same periods in 1997. Included in total year wholesale sales in 1998 were $12.0 million of sales to Universal made prior to Sept. 16, 1998.

David Gold, president of the company, said: "We are pleased to announce record sales for the quarter and the year. Our expansion is proceeding in accordance with plan with the opening of our first two stores in the San Diego area this past quarter. We currently have secured six new store locations."

99 Cents Only Stores(R), the nation's oldest existing one-price retailer, operates 64 retail stores, all in Southern California, a wholesale division called Bargain Wholesale and through its Universal International subsidiary, it operates 71 Only Deals and Odd's-N-End's multi-price discount stores 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 which could cause actual results to differ materially from these forward-looking statements include changes in the competitive market place, 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 http://www.businesswire.com/cnn/ndn.htm or via fax by calling 888/835-0099 toll free.