Elder-Beerman to Exit Forest Fair Mall in Cincinnati, Ohio.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--Jan. 7, 2003

The Elder-Beerman Stores Corp. (Nasdaq:EBSC) will close its department store in the Forest Fair Mall located in Cincinnati, Ohio on or about April 30, 2003, when the company's lease expires.

"The Forest Fair store does not fit our strategic goals or future growth plans," explained Bud Bergren, president and CEO. "Our newer stores are smaller, single-level stores located primarily in strip centers in midsize or smaller markets. The DeKalb, Illinois store that we announced to open in April 2003 is our 11th concept store. This successful format enhances the profitability of Elder-Beerman."

Elder-Beerman currently employs 32 full-time associates in its Forest Fair store. The company will offer employment opportunities in other area stores where positions are available. Any associate not transferred will receive a severance package in accordance with company policy and industry standards. Elder-Beerman operates twenty-nine other stores in Ohio and sixty-seven other stores in an eight state region.

The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 68 stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. For more information about the company see Elder-Beerman's web site at www.elder-beerman.com.

This press release may contain "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. 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 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 timing and effectiveness of new store openings, particularly its new stores opened in Spring Season 2002 (Coldwater, MI) and Spring Season 2003; 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 and paydown rates on consumer debts, including amounts owed to the Company; the impact of any new consumer bankruptcy laws; inflation and interest rates and the condition of the capital markets. National security threats could magnify some of those factors.

Elder-Beerman undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.