Elder-Beerman Reaches Agreement to Sell Bee-Gee Shoe Business.

DAYTON, Ohio--(BUSINESS WIRE)--Sept. 28, 1999--

The Elder-Beerman Stores Corp. (Nasdaq/NMS:EBSC) today announced that it has reached an agreement to sell its 55-unit Bee-Gee Shoe Corp. to a business group formed by Albertine Industries and Ark Capital. Terms of the sale have not been disclosed. The Company anticipates that the sale will be completed within 45-60 days.

Bee-Gee's administrative offices will remain in their present location in Dayton, and the purchasers are providing each of Bee-Gee's associates with continuing employment with Bee-Gee. Gordon Partin, currently Vice President and General Manager of Shoes, will lead the new organization as President and Chief Executive Officer. Elder-Beerman will provide support services to Bee-Gee's new management for a period of time to assist in the ownership transition.

The Company stated that the sale of Bee-Gee, which was negotiated over the last several weeks, will have no material impact on Elder-Beerman's 1999 performance as it represents less than 5 percent of gross revenues.

Jack Albertine, Chairman and Chief Executive Officer of Albertine Industries and Michael Granger, managing partner of Ark Capital, said, "Under our ownership, Bee-Gee will be able to pursue growth strategies to maximize what we see as an excellent business opportunity in the specialty shoe business."

The sale of Bee-Gee is a part of Elder-Beerman's strategic plan to strengthen its core business and drive shareholder value. Other initiatives include the company's previously announced $24 million share repurchase program and promotion of Charles Shaffer to Chief Merchant; the continued implementation of the planner/distributor merchandising process; the recent expansions of the Sandusky, Ohio and Winfield, West Virginia stores, which held Grand Reopenings earlier this month; and the implementation of the Company's four-point program to increase the usage and profitability of the Elder-Beerman credit card. In addition, the Company's new concept stores in Warsaw, Indiana and Frankfort, Kentucky remain on schedule for grand openings in mid-October and November, respectively.

The nation's eighth largest independent department store chain, The Elder-Beerman Stores Corp. operates 60 stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. Headquartered in Dayton, Ohio, Elder-Beerman reported total revenues of $658.0 million and net sales from store operations of $632.4 million in 1998. Elder-Beerman also operates two furniture superstores. The Bee-Gee Shoe Corp. operates 55 El-Bee and Shoebilee! shoe stores in seven states.

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 advertising, marketing and promotional programs; weather conditions that affect consumer traffic in stores; the continued availability and terms of financing; the ability to complete any pending asset disposition transactions; 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.