Elder-Beerman To Open Concept Store in Alliance, Ohio.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--May 3, 2001

The Elder-Beerman Stores Corp. (NASDAQ: EBSC) plans to open a 55,500 square foot department store in October 2001 in Alliance, Ohio. Elder-Beerman will build the store in its concept store format as an anchor store at the Carnation Mall, a shopping mall located on US 62, the major east-west route in Alliance. The store will be Elder-Beerman's ninth concept store and the company's 29th store in Ohio.

"Our award winning Concept Stores provide today's busy customers with the service and convenience they want in an attractive, contemporary setting," said Frederick J. Mershad, chairman and chief executive officer. "Concept Store growth, along with our emphasis on value in our merchandise offering and increased efficiencies in our organization, has allowed Elder-Beerman to develop a unique niche in the retail landscape."

This new concept store will carry fashion apparel, accessories and shoes for men, women, juniors, young men and children, cosmetics and fragrances, and home furnishings. The store's format will enhance customer shopping through a convenient layout and fixturing to attractively offer more merchandise in less space.

The concept store features in the new store will include:

-- Centralized customer service centers in main aisles throughout the store.
These service centers will be staffed continuously to provide efficient
transactions and quality service.

-- Self-select cosmetics and shoes on open shelves and other open fixtures for
customer access and convenience.

-- The Zone, a combined juniors' and young men's shop that creates a specialty
store within a store for the next generation customer.

The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. has its headquarters in Dayton, Ohio and currently operates 63 department stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. Elder-Beerman also operates two furniture galleries.

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: the ability to open new stores on schedule, including our new stores announced for 2001 in Kohler, Wisconsin and DuBois, Pennsylvania; increasing price and product competition; fluctuations in consumer demand and confidence, especially during the Christmas shopping season and in light of current general economic conditions, interest rates and the capital markets; the availability and mix of inventory; fluctuations in costs and expenses; consumer response to the company's new merchandising strategies, advertising, marketing and promotional programs; the ability of the company to achieve its expense cutting initiatives as it implements its strategic plan; the timing and effectiveness of new store openings, particularly its new concept stores opened in the Fall season of 2000 and Spring season of 2001 (Howell, Michigan; West Bend, Wisconsin; Jasper, Indiana and Plover, Wisconsin) and the new concept stores to be opened in the Fall season of 2001; the impact of electronic commerce; weather conditions that affect consumer traffic in stores, especially during the Christmas season; the continued availability and terms of financing; 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.