American Retail Group Explores Strategic Alternatives for Uptons Chain Expansion.

ATLANTA--(BUSINESS WIRE)--Feb. 26, 1999--American Retail Group, Inc. (ARG), a privately-held company with more than 1,000 specialty and specialty department stores throughout the United States, has decided to evaluate strategic alternatives designed to fund the expansion of Uptons, its specialty department store chain with 75 locations primarily in the Southeast.

"In the past, our company has primarily funded the expansion of our chains internally," commented Louis Brenninkmeyer, Chairman of ARG. "However, when NationsBanc Montgomery Securities approached us about evaluating strategic alternatives to capitalize on Uptons' growing market niche, we decided to explore this opportunity and retain the investment banking firm."

"Veteran retailer and CEO David Dworkin has reinvented Uptons from a strip center store into what may potentially become the Kohl's of the South," noted Tom Tashjian, Director of Retailing Research for NationsBanc Montgomery Securities. "The format is fresh and well-edited."

Based in Atlanta,and founded in 1984, Uptons is a leading, convenience-based destination shopping headquarters for the entire family. The company's emphasis is on merchandise assortments of branded fashions offering outstanding quality, value and appeal to its customers.

"Uptons is about fashion, value, brands and accessibility," noted David Dworkin. "Customers have reacted well to our new store concept and our market niche continues to expand. We are opening four new stores in the Atlanta metro area this year and are excited about the prospect of exploring various opportunities for further growth."

With stores located in 48 states, ARG is also comprised of Eastern Mountain Sports, Inc.; Hub Distributing, Inc., which operates Millers Outpost, Levi's Outlet by M.O.S.T./ Dockers Outlet by M.O.S.T., Juxtapose and the Anchor Blue Clothing Company; and Maurices Incorporated.