Ames Completes Public Offering.

ROCKY HILL, Conn.--(BUSINESS WIRE)--May 24, 1999--

Ames Department Stores, Inc. (NASDAQ: AMES) today announced the successful completion of its public offering of Common Stock. Ames sold a total of 5,100,000 shares, including all of the 600,000 shares covered by the underwriters' over-allotment option, generating net proceeds of approximately $187.9 million. With the completion of this sale, Ames Department Stores, Inc. has approximately 29.1 million shares of Common Stock outstanding.

Joseph R. Ettore, President and Chief Executive Officer, said, "We are extremely pleased with the market's reception of our public offering. This transaction provides our shareholders with additional market liquidity and gives us a more solid capital structure to build on for the future."

With over 450 stores, including the recently acquired Hills stores and nine former Caldor sites, located in 19 states and the District of Columbia, Ames is the nation's largest regional full-line discount retailer with annual sales of almost $4 billion. Ames offers a broad range of merchandise categories including family apparel, housewares, domestics, electronics, ready-to-assemble and patio furniture, jewelry, craft and pet supplies, health and beauty care items, stationery, sporting goods, toys, seasonal products and more.

For fax copies of Ames' most recent news releases, dial 1-800-925-7792 To find the location of the Ames store nearest you, dial 1-800-SHOP-AMES

http://www.AmesStores.com