Ames Reports July Comp Sales.

Business Editors

ROCKY HILL, Conn.--(BUSINESS WIRE)--Aug. 9, 2001

Ames Department Stores, Inc., (NASDAQ: AMES) today announced that net sales for the four-week period ended August 4, 2001 were $221.0 million, compared with net sales of $242.7 million in the year earlier period, a decrease of 8.9 percent.

Net sales for the thirteen week second quarter were $806.0 million, compared to $872.1 million in the year earlier period, a decrease of 7.6 percent. Net sales for the twenty-six week year-to-date period were $1,599.7 million, compared to $1,702.7 million in the year earlier period, a decrease of 6.0 percent.

Comparable-store sales for the period were $210.7 million compared with $228.4 million for the year earlier period, a decrease of 7.7 percent. Comparable-store sales are based on 426 stores. Comparable-store sales for the second quarter were $750.4 million, compared with $810.0 million for the year earlier period, a decrease of 7.4 percent. Comparable-store sales for the year-to-date period were $1,479.3 million, compared with $1,597.5 million last year, a decrease of 7.4 percent.

Joseph R. Ettore, Ames Chairman and Chief Executive Officer, said, "During the month we finalized a new financing agreement with Kimco Funding LLC which provides for up to $75 million in additional available funding. These monies, along with some revised marketing initiatives, will allow us to be fully prepared for the important Back-to-School sales period as well as the year-end Holiday Season."

             Ames Department Stores, Inc. and Subsidiaries

                    Fiscal 2001       Fiscal 2000    Percent Change(a)
                    -----------       -----------    ---------------
Month
 (Millions)
 Total Stores         $221.0            $242.7           (8.9%)
 Comp Stores          $210.7            $228.4           (7.7%)

Quarter
 (Millions)
 Total Stores         $806.0            $872.1           (7.6%)
 Comp Stores          $750.4            $810.0           (7.4%)

Year-to-date
 (Millions)
 Total Stores       $1,599.7          $1,702.7           (6.0%)
 Comp Stores        $1,479.3          $1,597.5           (7.4%)

(a) For comparable-store sales, layaways are recorded as sales as of
    the time of the initial transaction. For the year-to-date period,
    the effect of this reporting method is negligible.

Ames Department Stores, Inc., a FORTUNE 500(R) company, is the nation's largest regional, full-line discount retailer with annual sales of approximately $4 billion. With 452 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.