Press Releases

DOLLAR TREE STORES, INC. COMPLETES ACQUISITION OF DOLLAR EXPRESS, INC.
CHESAPEAKE, Virginia -- May 5, 2000 - Dollar Tree Stores, Inc. (Nasdaq: DLTR), the nation's largest $1.00 discount variety store chain, announced today that it has completed its planned acquisition of Philadelphia-based Dollar Express, Inc.

Dollar Tree estimates the Dollar Express merger and integration costs will be approximately $6.0 to $7.0 million. The acquisition is expected to be accretive to Dollar Tree's current year earnings, excluding merger costs. Dollar Tree believes the merger costs will be partially offset by anticipated synergies in 2000.

Dollar Tree does not intend to revise its 2000 store opening plans as a result of the merger. Current plans continue to target 23% to 25% square footage growth for the year, excluding stores acquired in the merger.

Under the terms of the final merger agreement, Dollar Tree has issued or reserved 6,000,000 shares of its common stock in exchange for all of Dollar Express's outstanding stock and options. Five percent of the shares have been placed in escrow for one year to secure Dollar Express's obligations to Dollar Tree. The stock-for-stock transaction will be accounted for as a pooling-of-interests.

Dollar Tree Stores, Inc. is the nation's largest $1.00 discount variety store chain. Its stores offer a wide assortment of quality everyday general merchandise, in many traditional variety store categories. Dollar Tree Stores operates 1,445 stores in 35 states as of May 4, 2000.

Dollar Express, Inc. is a leading operator of fixed $1.00 price point stores in the United States. Dollar Express operates 107 Dollar Express stores in six Mid-Atlantic states and 25 Spain's Cards and Gifts stores in the Philadelphia metropolitan area as of May 4, 2000.

This news release contains forward-looking statements regarding Dollar Tree and the combined company after the merger, including, among others, statements relating to accretion to reported earnings that may be realized from the merger, the effect of one-time costs related to the merger and company growth prospects. Such forward-looking statements are subject to certain risks and uncertainties, including a variety of factors that may cause the combined company's actual results to differ materially from anticipated results or other expectations described in such statements. Such factors include possible increases in merger costs, the failure to achieve anticipated synergies and the failure of the combined company to integrate successfully. Additionally, forward-looking statements are subject to the risks indicated in the Company's filings with the Securities and Exchange Commission.