FAMILY BARGAIN CORPORATION ANNOUNCES AUGUST SALES.

NEW YORK--(BUSINESS WIRE)--AUGUST 31, 1995--FAMILY BARGAIN CORPORATION (Nasdaq Symbol: FBAR, Nasdaq Preferred Symbol: FBARP) today announced that August sales at its Family Bargain Center stores were $16.6 million versus $13.2 million reported for August of the prior year, a 26.0% increase. August comparable store sales (stores operating both this year and last year) increased 12.4%.

Year-to-date sales through August were $85.0 million compared to $73.3 million reported for the first seven months of the prior year, a 16.0% increase. Comparable store sales increased by 0.4% for the fiscal year to date.

FAMILY BARGAIN CORPORATION operates 102 `Family Bargain Center' off-price apparel retail stores which sell primarily first quality clothing for men, women and children at prices which generally are significantly lower than the prices offered by its competitors. Stores are located in California, Arizona, New Mexico, Washington, Nevada and Oregon.

CONTACT: John A. Selzer

Chief Executive Officer

212-980-9670

or

Investor Relations Contact:

John Nesbett, ext. 101

212-838-3777