DOLLAR GENERAL ANNOUNCES 5-FOR-4 STOCK SPLIT; INCREASES DIVIDEND PAYOUT BY 25%.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 13, 1997--Dollar General Corporation (NYSE: DG) announced that its Board of Directors has declared a 5-for-4 stock split on the company's Common Stock. In conjunction with that action, the Board maintained the cash dividend of $.05 per share on all outstanding shares, thereby increasing the dividend income to its shareholders by 25 percent.

Chairman and CEO Cal Turner, Jr., made the announcement saying, "Rewarding our shareholders with this stock split and increase in our dividend payout is not an action our directors consider lightly. A decision like this is their way of saying they are not only pleased with our recent performance, but they are also excited by the prospects ahead."

As a result of the stock split, each common shareholder of record at the close of business on February 3, 1997, will receive one additional share of Common Stock for each four shares of Common Stock held on that date. The new shares will be distributed on or about February 17, 1997.

The Board of Directors declared a quarterly dividend of $.05 per share on the increased number of common shares outstanding after giving effect to the 5-for-4 stock split. The 25 percent increase in the cash dividend income to the shareholders will first take effect when the quarterly dividend is paid on March 10, 1997 to shareholders of record at the close of business on February 21, 1997.

This is the seventh 5-for-4 stock split in the last six years. After each split, Dollar General has maintained a cash dividend of $.05 per share on all outstanding shares.

Dollar General is a chain of more than 2,691 neighborhood stores operating in 24 states with distribution centers in Kentucky, Georgia and Oklahoma. The company's stock is traded on the New York Stock Exchange.

CONTACT: Dollar General Corporation, Nashville

Investor Contact: Kiley Fleming, 615/783-2014

or

Media Contact: Cabot Pyle, 615/783-2028