Elder-Beerman Continues to Reduce Expense Structure.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--April 22, 2002

The Elder-Beerman Stores Corp. (Nasdaq:EBSC) eliminated 105 associate positions out of approximately 7,000 in April as part of its previously announced expense initiatives for fiscal 2002. Company associates have been notified. The company has placed 38 associates in other open positions within the organization. The remaining 67 associates will receive severance payments in accordance with company policy and industry standards.

This streamlining will reduce the company's expenses by approximately $3,600,000 on an annualized basis, excluding a charge for severance of approximately $577,000, which will be taken in the first quarter ending May 4, 2002.

Byron ("Bud") L. Bergren, Elder-Beerman's President and CEO, stated, "This workforce reduction is a necessary part of our ongoing effort to improve our expense structure. We have eliminated 22 positions in the corporate office, and 83 positions in all store locations in the eight states where we do business and in the distribution center. In the stores, only management positions were eliminated. No selling positions were affected.

"It was a difficult decision. But this expense control measure is important to ensure that Elder-Beerman remains competitive in the industry while it pursues its long-term goals to generate profitable sales and earnings growth."

The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 67 department stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. Elder-Beerman also operates two furniture galleries. For more information about the company see Elder-Beerman's web site at www.elder-beerman.com.

This press release contains "forward-looking statements," including predictions of future operating performance, events or developments such as our future sales, gross margins, 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. The national tragedy of September 11, 2001 and subsequent national security threats and warnings could magnify some of those factors. Factors that could materially affect performance include the following: increasing price and product competition; fluctuations in consumer demand and confidence, especially in light of current uncertain general economic conditions; the availability and mix of inventory; fluctuations in costs and expenses; consumer response to the Company's merchandising strategies, advertising, marketing and promotional programs; the effectiveness of management; the timing and effectiveness of new store openings, particularly its new concept stores opened in Fall Season of 2001 (DuBois, PA, Alliance, OH and Kohler, WI) and in Spring Season 2002 (Coldwater, MI); weather conditions that affect consumer traffic in stores; the continued availability and terms of bank and lease financing and trade credit; the outcome of pending and future litigation; consumer debt levels; the impact of any new consumer bankruptcy laws; 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.