Dairy Mart Stores In Seven States Will Offer Customers No-Fee ATM Service; Unique Service Will Make Dairy Mart a Destination Stop for Customers.

HUDSON, Ohio--(BUSINESS WIRE)--March 31, 1999--Dairy Mart Convenience Stores, Inc., (AMEX:DMC.A)(AMEX:DMC.B) announced today that approximately 600 Dairy Mart stores throughout the chain's Midwest and Southeast system will be offering customers No-Fee ATM (automatic teller machine) service. Many of the stores are open 24-hours a day.

Over the next two months most Dairy Mart stores in Ohio, Kentucky, Michigan, Pennsylvania, Indiana, Tennessee and North Carolina will have new ATM machines installed. The program will be supported through major advertising and promotion campaigns in each market.

"I believe this unique service makes Dairy Mart the only non-bank affiliated provider of No-Fee ATM service in our markets," said Robert B. Stein, Chairman, President and Chief Executive Officer. Dairy Mart is foregoing the customary transaction fee (typically $1.50 per transaction) charged customers for accessing their funds through automatic teller machines. Normal bank charges assessed by each customer's bank, if applicable, will continue as usual.

"Our new No-Fee ATM program is one of several major initiatives planned for the coming months as we aggressively pursue our strategy for increasing comparable store sales by offering customers exceptional convenience and value," Stein added.

Stein explained the significance of the No-Fee ATM program by citing research which shows that as many as three out of four ATM customers make a purchase when they stop to use the ATM, and they spend more on average than customers who do not use the ATM.

"ATM customers typically make their decision based on convenience of the ATM, and an awareness of fees, " Stein noted. "With 600 stores conveniently located in high-traffic thoroughfares, customers in our markets will have access to their funds, without incurring an additional cost, literally wherever, and whenever they want."

"We are confident that our No-Fee ATM service gives Dairy Mart a competitive advantage, " Stein added. "Based on our research, it should be a significant traffic builder."

Dairy Mart's marketing plan to support the No-Fee ATM service will feature outdoor billboards, newspaper and radio advertising in all markets. Individual stores where the new ATMs have been installed will be identified for customers through outdoor banners, store signs and buttons worn by store personnel. The No-Fee ATM service is being managed for Dairy Mart by EFMARK, a leading provider of ATMs and ATM services nationwide.

Dairy Mart is in the process of significantly upgrading its asset quality and increasing customer traffic, and therefore, comparable store sales, by offering new products and services.

Last year 25 new stores were opened. Each of the new stores generates $2.5 to $3.0 million in incremental revenue, which is 4 to 5 times greater than the Company's older stores. This year another 30 to 40 new store openings are expected to add up to $120 million in revenue," Stein noted.

Dairy Mart Convenience Stores, Inc. is a major regional convenience retail chain. The Company owns or operates approximately 620 retail stores in seven states. Through consulting and licensing agreements, the Company is also affiliated with more than 200 stores in Korea, and approximately 400 locations in Malaysia. Dairy Mart is proudly celebrating its 60th anniversary this year. For more information visit Dairy Mart's web site at www.dairymart.com.

Statements contained in this release that are not historical facts, including those relating to future financial performance and construction plans may constitute forward-looking statements with respect to Dairy Mart's future performance. Forward-looking statements are generally identified by the words, "anticipate," "believe," "expect," "plan," "intent," "should," "estimate," and similar expressions. Factors that could cause actual results to differ materially from those in the forward-looking statements include competition, general economic conditions, the availability of capital, the ability to obtain suitable locations for new stores, construction delays, the ability to attract and retain key personnel and other factors disclosed in Dairy Mart's period filings with the Securities Exchange Commission.

Editor's Note: A schedule for the installation of No-Fee ATMs in Dairy Mart stores in your area can be accessed via Dairy Mart's web site at www.dairymart.com.