Ames Announces 54 Store Closings.

Business Editors

ROCKY HILL, Conn.--(BUSINESS WIRE)--Dec. 5, 2001

Ames Department Stores, Inc. (OTC: AMESQ) announced today that it will close 54 store locations. The stores will begin liquidation on December 30, 2001 and are expected to close in February or March of 2002.

"Ames is focused on an aggressive plan to emerge from reorganization as promptly as possible. To achieve that goal, and provide continued opportunity for more than 24,000 associates moving forward, we have to demonstrate performance that will ensure Ames access to capital. This last round of closings gives us the financial profile we need," said Joseph R. Ettore, Ames' Chairman & CEO.

The company indicated that its analysis of store sales volumes, local demographics and market potential demonstrated that as a result of closing this group of stores, reported sales per square foot for the remaining 333 Ames locations would be 22 percent higher than the current chain average.

"Closing stores is a difficult decision," Ettore added. "But Ames will continue to have a strong presence in the majority of these markets. More importantly, we will also be able to offer many of the impacted associates an opportunity to work in a nearby store location."

Ames Department Stores, Inc. is a regional, full-line discount retailer with annual sales over $3 billion. With stores in the Northeast, Mid-Atlantic and Mid-West, Ames offers value-conscious shoppers quality, name-brand products across a broad range of merchandise categories. For more information about Ames, visit www.AmesStores.com or www.AmesStores.com/espanol.

To find the location of the Ames store nearest you, dial 1-800-SHOP-AMES.

Cautionary Statement Regarding Forward-looking Information

Statements, other than those based on historical facts which address activities, events, or developments that the Company expects or anticipates may occur in the future are forward-looking statements which are based upon a number of assumptions concerning further conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in any forward-looking statements. The Company's ability to achieve such results is subject to certain risks and uncertainties. Consequently, these cautionary statements qualify all of the forward-looking statements and there can be no assurance that the results or developments anticipated by the Company will be realized or that they will have the expected effects on the Company or its business or operations.

      Store Closing List

      Delaware (1)
      Wilmington--3600 Miller Rd

      Maryland (2)
      Baltimore--3450 Annapolis Rd
      Lutherville Timonium--2145 York Rd

      Maine (2)
      Sanford--1364 Main St
      Falmouth--251 US Route 1

      New Hampshire (1)
      Tilton--630 West Main St

      New Jersey (1)
      Somerdale--711 Evesham Ave

      New York (4)
      Canandaigua--3225 E Lake Rd, State Rte 364
      Carthage--500 W End Ave
      Niagara Falls--2429 Military Rd
      Monticello--4050 Rte 42

      Ohio (14)
      Ashtabula--2466 West Prospect Rd
      Austintown--6000 Mahoning Ave
      Brooklyn--11111 Memphis Ave
      Canal Winchester--6035 Gender Rd
      Chillicothe--985 N Bridge St
      Columbus--2189 Eakin Rd
      Lancaster--1601 River Valley Circle N
      Mentor--8485 Market St
      Middletown--2535 S Breiel Blvd
      New Philadelphia--400 Mill Ave SE
      Niles--5791 Warren Youngstown Rd
      Piqua--987 E Ash St
      Whitehall--3955 East Broad St
      Youngstown--476 Boardman-Canfield Rd

      Pennsylvania (18)
      Belle Vernon--8000 Rostraver Rd
      Berwick--Us Rte 11, 2015 West Front St
      Bethel Park--5775 Baptist Rd
      Bristol--Route 413 & Route B
      Edinboro--12511 Edinboro Rd
      Erie--2711 Elm St
      Fairless Hills--520 Lincoln Hwy
      Kittanning--19 Franklin Village Mall
      Grove City--11 Pine Grove Square
      Harrisburg--5005 Jonestown Rd
      Lancaster--1300 Lititz Pike
      McMurray--4009 Washington Rd
      Phoenixville--100208 Schuylkill Rd & Hollingsworth
      Philadelphia--703 E Hunting Ave
      Reading--3215 N 5th Street Hwy
      Sayre--500 N Elmira St
      Tyrone--RD #5, Rte 220
      Pittsburgh--4801 McKnight Rd

      Rhode Island (1)
      Middletown--878 West Main Rd

      Virginia (4)
      Christiansburg--1500 Roanoke Rd
      Lynchburg--2110 Ward Rd
      Norfolk--207 E Little Creek Rd
      Roanoke--3971 Brambleton Ave

      West Virginia (6)
      Bluefield--RR 460
      Bridgeport--1190 West Main St
      Charleston--100 Kanawha Mall
      Buckhannon--100 Buckhannon Mall
      Dunbar--991 Dunbar Village Plaza
      Lyburn--US Rte 10 S