Elder-Beerman Reports First Quarter Earnings Results.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--May 18, 2000

The Elder-Beerman Stores Corp. (Nasdaq:EBSC) today reported flat earnings for the 13 weeks ended April 29, 2000, excluding $4.7 million of one-time pre-tax store closing expenses. Basic and diluted earnings per share, excluding one-time store closing expenses, equaled $0.00, compared to loss of $0.01 for the first quarter of 1999. Total revenues rose 1.4 percent to $148.9 million for the quarter. As previously reported, total sales for the period increased to $141.6 million, up 1.4 percent over last year, and comparable sales for the quarter decreased 1.2 percent.

Frederick J. Mershad, Chairman and Chief Executive Officer, stated, "We are pleased with our improved first quarter earnings results. We achieved our earnings expectations with improved gross margin and disciplined expense control."

Mershad continued, "While we continue to evaluate strategic options, we are also focused on initiatives to strengthen the business and improve shareholder value for any possible outcome of our evaluation process. During the first quarter we announced several important initiatives, including:

-- Our second concept store for 2000 in West Bend, Wisconsin,

which, along with the Howell, Michigan store, will open in

the fall.

-- The spring closing of two underperforming stores.

-- An innovative proprietary point of sale system to bring

better, more efficient service to our customers.

-- Rollout of the centralized cash wrap service centers

featured in our new concept stores to half of our existing

stores,

-- And the $300 million renewal of our credit facilities."

The conference call to discuss the first quarter results will be publicly available over the Internet at www.streetfusion.com at 11:00 a.m. today. A taped replay of the conference call will be available on demand at www.streetfusion.com through May 22, 2000.

The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 62 stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. Elder-Beerman also operates two furniture superstores.

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.

            The Elder-Beerman Stores Corp. And Subsidiaries
            Condensed Consolidated Statements of Operations
           (Dollars in thousands, except per share amounts)
                              (Unaudited)

                    Normalized(A)
                   13-weeks ended     13-weeks ended    13-weeks ended
                  Apr. 29, % Sales   Apr. 29, % Sales   May 1  % Sales
                   2000               2000              1999(B)
                 ----------------------------------- -----------------
Revenues:
  Net sales      $  141,582 100.0% $  141,582 100.0% $  139,654 100.0%
  Financing           6,770   4.8%      6,770   4.8%      6,700   4.8%
  Leased departments    592   0.4%        592   0.4%        598   0.4%
                 ---------- ------ ---------- ------ ---------- ------
Total revenues      148,944 105.2%    148,944 105.2%    146,952 105.2%

Costs & expenses:
  Cost of merchandise
   sold, occupancy,
   and buying
   expenses         103,090  72.8%    104,890  74.1%    102,109  73.1%
  Selling, general and
   administrative
   expenses          42,269  29.9%     42,269  29.9%     41,508  29.7%
  Provision for
   doubtful accounts    943   0.7%        943   0.7%        932   0.7%
  Interest expense    2,928   2.1%      2,928   2.1%      2,483   1.8%
  Other expense
   (income)            (207) -0.1%      2,713   1.9%       (125) -0.1%
                 ---------- ------ ---------- ------ ---------- ------
     Total costs &
      expenses      149,023 105.3%    153,743 108.6%    146,907 105.2%

Income (loss) from
 continuing operations
 before income tax
 expense (benefit)      (79) -0.1%     (4,799) -3.4%         45   0.0%

Income tax expense
 (benefit)              (28)  0.0%     (1,728) -1.2%         17   0.0%
                 ---------- ------ ---------- ------ ---------- ------

Income (loss)
 from continuing
 operations             (51)  0.0%     (3,071) -2.2%         28   0.0%

Discontinued
 operations              --                --              (216) -0.2%
                 ---------- ------ ---------- ------ ---------- ------
Net loss         $      (51)  0.0% $   (3,071) -2.2% $     (188) -0.1%
                 ---------- ------ ---------- ------ ---------- ------
                 ---------- ------ ---------- ------ ---------- ------

Basic net loss per
 common share
     Continuing
      operations $     0.00        $    (0.21)       $     0.00
     Discontinued
      operations       --                --               (0.01)
                 ----------        ----------        ----------
Net loss         $     0.00        $    (0.21)       $    (0.01)
Weighted average
 number of shares
 outstanding     14,653,934        14,653,934        15,752,831

Diluted net loss
 per common share
  Continuing
   operations    $     0.00        $    (0.21)       $     0.00
  Discontinued
   operations          --                --               (0.01)
                 ----------        ----------        ----------
Net loss         $     0.00        $    (0.21)       $    (0.01)
Diluted weighted
 average number
 of shares
 outstanding     14,653,934        14,653,934        15,827,345

(A)  Normalized first quarter results exclude the impact of one-time
     charges to reflect the write-down of amounts and incurred
     expenses related to the closing of two stores.

(B)  Historical results have been restated to reflect The Bee-Gee Shoe
     Corp. as a discontinued operation.