FACTORY STORES OF AMERICA, INC. ANNOUNCES SECOND QUARTER RESULTS.

SMITHFIELD, N.C.--(BUSINESS WIRE)--Aug. 15, 1995--Factory Stores of America, Inc. (NYSE:FAC), a leading operator of factory outlet centers, today announced results for the second quarter and six months ended June 30, 1995.

For the second quarter ended June 30, 1995, revenues increased 27% to $13.6 million from $10.7 for the second quarter of 1994. Net income for the quarter was $2.3 million, or $0.19 per common share, compared with $3.3 million, or $0.28 per common share for the second quarter of 1994. Funds from operations (FFO) as adjusted for the second quarter of 1995 was $6.2 million, or $0.53 per common share.

For the six months ended June 30, 1995, revenues increased 22% to $26.3 million from $21.6 million for the same period a year ago. Net income for the six months was $5.0 million, or $0.42 per common share, compared with $7.1 million, or $0.60 per common share. FFO as adjusted for the first half of 1995 was $12.2 million, or $1.03 per common share. Net income and adjusted FFO for the six months ended June 30, 1995, include a first quarter downward revision of $383,000, or $0.03 per common share, for the delay in receiving final payment of a scheduled land sale by the Company. The Company expects to close this transaction by year-end and thus recognize this gain on sale during the current fiscal year.

J. Dixon Fleming, Jr., chairman and chief executive officer, said, "Funds from operations for the second quarter and the first half of the year have been on target with our expectations. In the second half of the year, we expect to complete several outparcel sales, which should contribute approximately $1.0 million to FFO for the year. During the quarter, our $24.0 million expansion program continued as planned, with projects underway at centers in Nashville, Tennessee; Smithfield, North Carolina; Story City, Iowa; and Nebraska City, Nebraska. Our first tenants will be opening in Branson, Missouri, on September 15th. This center, which is our largest to date, is 90.0% committed and features a wide-range of nationally recognized manufacturers. With the opening of Branson and the completion of the expansion projects that are currently underway, we will add 473,000 square feet to our portfolio. In addition, total center sales have increased 11.4% for the first six months of 1995 versus the first six months of 1994."

Fleming added, "As previously announced, we are in the process of completing definitive agreements to combine the factory outlet centers owned by The Public Employees Retirement System of Ohio (OPERS) and the management and business operations of Charter Oak Group Ltd., a subsidiary of Rothschild Realty, Inc., with Factory Stores of America. We anticipate a shareholder meeting for Factory Stores' shareholders of record in the fall and for the transaction to be completed by year-end."

The combined company is expected to be the nation's largest owner and operator of factory outlet centers and will be comprised of 51 outlet centers in 28 states, including three properties under development for delivery in 1995 and two planned for 1996. The portfolio, including centers expected to be completed in 1995, would total approximately 8.0 million square feet of gross leasable area (GLA), approximately a 20% market share of the factory outlet industry. The tenant roster would include such well-known names as Vanity Fair, Levi's, J. Crew, Spiegel, Polo/Ralph Lauren, Nike, Mikasa, Reebok, Eddie Bauer, and Phillips Van Heusen.

As previously reported, Factory Stores declared a cash dividend of $0.51 (fifty-one cents) per share for the period April 1, 1995, to June 30, 1995, on its common stock outstanding. The dividend was payable on August 7, 1995, to stockholders of record on July 20, 1995.

Factory Stores of America, a self-administered real estate investment trust, is a leading factory outlet REIT in terms of numbers of centers and square footage. At June 30, 1995, the Factory Stores' portfolio included 35 outlet centers in operation totaling 4.3 million square feet of GLA in 21 states, the Branson center under development and planned expansions of 192,000 square feet.

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                   FACTORY STORES OF AMERICA, INC.
                Consolidated Statements of Operations
              (in thousands, except per share amounts)
                            (Unaudited)

                                             Three Months Ended
                                                  June 30,
                                           1995(1)         1994(2)
Total revenues                            $ 13,557        $ 10,691
Net income                                $  2,288        $  3,260
Net income per share                      $   0.19        $   0.28
Funds from operations                     $  5,682        $  5,137
Funds from operations per share               0.48        $   0.43

Funds from operations, as adjusted        $  6,217        $  8,881
Funds from operations per share,
 as adjusted                              $   0.53        $   0.75

Dividends per share                       $   0.51        $   0.48
Weighted average shares outstanding         11,814          11,813

                                              Six Months Ended
                                                   June 30,
                                           1995(1)         1994(2)
Total revenues                            $ 26,322        $ 21,617

Net income                                $  4,953        $  7,081
Net income per share                      $   0.42        $   0.60
Funds from operations                     $ 11,136        $ 10,792
Funds from operations per share           $   0.94        $   0.91

Funds from operations, as adjusted        $ 12,169        $ 14,857
Funds from operations per share,
 as adjusted                              $   1.03        $   1.26

Dividends per share                       $   1.02        $   0.96
Weighted average shares outstanding         11,814          11,809

    (1)Funds from operations for the second quarter and first half of
1995 has been adjusted to reflect revenue received from the managing
partner of the Willey Creek properties.  This revenue is unrelated to
the acquired properties but rather is for various management,
marketing and leasing fees for other properties, as well as a lease
buyout of a tenant controlled by the managing partner.
    (2)Funds from operations has been restated for certain
non-operational items which were received during 1994 by the Company
related to the purchase of the Willey Creek properties acquired in
two separate transactions in December 1993 and June 1994.

CONTACT: Factory Stores of America, Smithfield

John N. Nelli, 919/934-9446