FRED'S REPORTS HIGHER NOVEMBER SALES.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Nov. 30, 1995--Fred's, Inc. (Nasdaq/NM:FRED) today reported higher sales for the four-week and ten-month periods ended November 25, 1995.

Fred's sales for November rose 7.8% to $35.9 million compared with $33.3 million in November 1994. On a comparable store basis, sales for November were up 3.0% from a year ago. For the first ten months of fiscal 1995, sales rose 6.0% to $321.9 million compared with $303.6 million in the same period of fiscal 1994. Comparable store sales for the ten-month period increased 2.4% from the year- earlier levels.

Commenting on the announcement, Michael J. Hayes, President and Chief Executive Officer, said, "We are pleased with the continued strength of our pharmacy department, which again had a significant impact on our chain's comparable store sales growth in November. Aside from this area, we noticed slightly stronger results during the month in our hard lines, particularly for food products."

Fred's, Inc. operates 203 discount general merchandise stores in the southeastern United States. The Company also markets goods and services to 35 franchised Fred's stores.

CONTACT: Fred's, Inc., Memphis

Bruce D. Smith, 901/362-3733, Ext. 2217