Factory 2-U Stores Inc. Announces November Sales.

SAN DIEGO--(BUSINESS WIRE)--Dec. 3, 1998--Factory 2-U Stores Inc. (Nasdaq:FTUS) (formerly Family Bargain Corp.) Thursday announced that sales for the four-week period ended Nov. 28, 1998 increased 22.4% to $32.2 million compared with $26.3 million last year.

Comparable store sales for November increased 20.2% vs. an increase of 5.1% in November 1997. Sales for the 43 weeks ended Nov. 28, 1998 were $257.2 million, an increase of 10.2% over sales of $233.4 million for the first 43 weeks of fiscal 1997. Same store sales increased 8.7% for the 43-week period ended Nov. 28, 1998. The company operated 169 stores as of Nov. 28, 1998.

Mike Searles, chairman and CEO, commented: "We are pleased that our sales performance continues to build on last year as we anniversary strong Holiday comparisons from 1997.

"We enjoyed a strong performance in all areas of apparel and a very strong performance in our newly expanded Home business. Our inventory position in stores is comparable to last year and we are well positioned as we enter the most important month of our Holiday season."

Factory 2-U Stores operates 169 "Factory 2-U" and "Family Bargain Center" off-price retail stores in seven states which sell primarily first quality clothing for men, women and children, and household goods at prices which generally are significantly lower than the prices offered by its competitors. Stores are located in the western United States.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risk and uncertainties, and actual results could differ materially from the company's present expectations. Among the important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are: customer demand and trends in the off-price apparel industry, the effect of economic conditions, the impact of competitive openings and pricing, supply constraints or difficulties, and other risks detailed in the company's Securities and Exchange Commission filings.