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MERCANTILE STORES COMPANY COMMENCES TENDER OFFER

 MERCANTILE STORES COMPANY COMMENCES TENDER OFFER
 FAIRFIELD, Ohio, April 14 /PRNewswire/ -- Mercantile Stores Company,


Inc. (NYSE: MST), announced today the commencement of a tender offer for its outstanding 11.75 percent sinking fund debentures due 2015 (the "11.75 percent debentures").
 As stated in the offer to purchase, dated April 14, 1992, holders of 11.75 percent debentures who tender their debentures pursuant to the tender offer will receive $1,087.50 per $1,000 principal amount of the 11.75 percent debentures plus accrued interest from Feb. 15, 1992, to May 1, 1992. The tender offer is not conditioned upon any minimum number of debentures being tendered and is scheduled to terminate at 5:00 p.m. New York City time on April 24, 1992. Payment will be made in New York Clearing House funds on May 1, 1992.
 The 11.75 percent debentures, which total $44,000,000 principal amount outstanding, are listed on the New York Stock Exchange. Goldman, Sachs & Co. will act as dealer managers for the tender offer. MacKenzie Partners, Inc., will act as information agent. Citibank, N.A., will act as depositary.
 In addition, Mercantile Stores Company, Inc., announced today that the trustee of the company's debentures is notifying the holders of the 11.75 percent debentures that all 11.75 percent debentures not tendered pursuant to the tender offer will be redeemed by Mercantile Stores Company, Inc., as of May 14, 1992, at a price of $1,082.25 per $1,000 principal amount plus accrued interest from Feb. 15, 1992, to May 14, 1992. The paying agent for the redemption is Citibank, N.A., 111 Wall St., New York, NY 10043.
 On April 3, 1992, Mercantile Stores Company, Inc., commenced a tender offer for its 12.5 percent sinking fund debentures due 2014 (the "12.5 percent debentures"), which terminated on April 13, 1992. Of the $50,000,000 principal amount of 12.5 percent debentures outstanding, $49,995,000, or 99.9 percent, were tendered pursuant to the tender offer (including tenders pursuant to guaranteed delivery procedures). The remaining $5,000 of 12.5 percent debentures not purchased pursuant to the offer will be redeemed on May 3, 1992, at a price of 107.308 percent of par plus accrued interest.
 Mercantile Stores Company, Inc., announced that, as a result of the retirement of the 11.75 percent debentures and the 12.50 percent debentures pursuant to the tender offer and redemption of those debentures, it will incur an extraordinary, after-tax charge of approximately $5,500,000, or $.15 per share, for 1992, which will be reflected in the quarter ending April 30, 1992.
 The company also announced its intention to complete the relocation of its central buying office from New York City to Fairfield, Ohio, and to consolidate certain divisional functions in Fairfield. It also intends to merge, managerially, the operations of its McAlpin's group, based in Lexington, Ky., with its Bacons group, based in Louisville. The after-tax cost of this consolidation and restructuring is estimated at $10,500,000, or $.28 per share, which will be reflected as a restructuring charge in the first quarter of 1992.
 The company further announced that it will adopt SFAS No. 106, "Employers' Accounting for Post-Retirement Benefits Other than Pensions," in the first quarter of 1992. The one-time, after-tax cost of the cumulative effect of this standard is approximately $12,200,000, or $.33 per share.
 -0- 4/14/92
 /CONTACT: William A. Carr, controller of Mercantile Stores Company, 513-860-8121/
 (MST) CO: Mercantile Stores Company, Inc. ST: Ohio IN: REA SU:


GK -- NY011 -- 8070 04/14/92 08:47 EDT
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Date:Apr 14, 1992
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