Elder-Beerman Announces the Grand Openings of Two New Concept Stores in West Bend, Wisconsin and Howell, Michigan.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--Sept. 19, 2000

The Elder-Beerman Stores Corp. (Nasdaq:EBSC) announces the October 4, 2000 Grand Openings of its two newest department stores in West Bend, Wisconsin and Howell Michigan.

The 62,000 square-foot West Bend store and the 74,000 square-foot Howell store are the third and fourth of Elder-Beerman's new concept stores. Growth of the concept store format in smaller, underserved markets is a key element of the company's new three-part strategic plan announced in August of this year. The first two concept stores in Warsaw, Indiana, and Frankfort, Kentucky had successful grand openings last fall and have been very well received by customers. The new stores will carry a mix of brand name fashion merchandise for men, women, juniors, young men and children; a full assortment of home furnishings; and cosmetics and fragrances, including Estee Lauder, Clinique, Lancome and Elizabeth Arden. Elder-Beerman has designed the store to enhance the customer shopping experience through a more convenient store layout and high-capacity fixturing that will attractively display more merchandise in less space.

The West Bend and Howell stores have many innovative features, including:

-- Centralized customer service centers - Six centers throughout the store will
be staffed during all store hours to facilitate fast and easy purchases for the
customer with Elder-Beerman's new proprietary point of sale system. These
service centers and the new point of sale system help Elder-Beerman to provide
the fast and efficient service that today's customer needs.

-- Self-select cosmetics - All of the fragrances and about 50 percent of the
treatment products will be available on open shelves for shopping convenience.

-- The Zone - A combined juniors' and young men's shop that creates an exciting
specialty store within a store for the next generation of Elder-Beerman
customers.

"The growth of our concept stores is very important to our three-part strategic plan, along with a shift in our merchandising strategy and the streamlining of our organizational structure," stated Frederick J, Mershad, Elder-Beerman's chairman and chief executive officer. "The West Bend and Howell stores fit perfectly into our new store strategy in terms of location and demographics. We look forward to serving new customers in these communities."

The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and now operates 62 department stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. Elder-Beerman also operates two furniture superstores. The company has announced a new concept store in Jasper, Indiana scheduled to open in November 2000.

This press release contains "forward-looking statements," including predictions of future operating performance, events or developments such as our future sales, profits, expenses, income and earnings per share. In addition, words such as "expects," "anticipates," "intends," "plans," "believes," "hopes," and "estimates," and variations of such words and similar expressions, are intended to identify forward-looking statements.

Because forward-looking statements are based on a number of beliefs, estimates and assumptions by management that could ultimately prove inaccurate, there is no assurance that forward-looking statements will prove to be accurate. Many factors could materially affect our actual future operations and results, including the following: increasing price and product competition; fluctuations in consumer demand and confidence; the availability and mix of inventory; fluctuations in costs and expenses; the effectiveness of merchandise strategies, advertising, marketing and promotional programs; weather conditions that affect consumer traffic in stores; the continued availability and terms of financing; the outcome of pending and future litigation; consumer debt levels; and other general economic conditions that affect retail operations and sales, such as the rate of employment, inflation and interest rates and the condition of the capital markets.

Elder-Beerman undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.