Elder-Beerman to Close Two Underperforming Downtown Stores in West Virginia; Department Store Chain Says It Will Focus On Successful Store Locations in State.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--March 2, 2000

The Elder-Beerman Stores Corp. (Nasdaq/NMS:EBSC) announced today that it is closing its downtown department stores in Wheeling and Charleston, West Virginia.

Elder-Beerman, one of the largest department store chains in West Virginia, operates eight additional stores in West Virginia, as well as stores in St. Clairsville, Ohio, and Ashland, Kentucky, to serve the people of West Virginia. The eight additional West Virginia stores are located in Huntington, Clarksburg, Parkersburg, Kanawha, Winfield, Morgantown - Greenbag Road location, Morgantown - Morgantown Mall location, and Beckley. Elder-Beerman recently doubled the size of its Winfield store.

Frederick J. Mershad, Chairman and Chief Executive Officer, explained the Wheeling/Charleston decision, saying, "Closing these two stores was a very difficult decision. Despite the hard work and best efforts of our Wheeling and Charleston associates, and the support of state and local public officials, the stores were underperforming. We have studied this situation in detail and cannot identify any scenario in which these two locations would operate at acceptable business levels. At the same time, other Elder-Beerman locations in West Virginia have increased in profitability. We have no choice but to focus our efforts on those locations where we are more successful."

The Elder-Beerman Stores Corp. employs a total of 58 full-time and part-time associates in its Wheeling store and 57 full-time and part-time associates in its Charleston store. The company intends to offer transfers to neighboring store locations to as many of those associates as possible. Those not able to be transferred will be given a severance package in accordance with company policy. The company's total employment in West Virginia is 780 associates.

The stores are expected to close sometime in June. The company expects to incur a one time loss in connection with these store closings.

The nation's eighth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 62 department 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 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.