Press Releases

DOLLAR TREE STORES, INC. SIGNS MERGER AGREEMENT WITH NEW YORK-BASED "ONLY $ONE" STORES
CHESAPEAKE, Virginia -- June 15, 1999 - Dollar Tree Stores, Inc. (Nasdaq: DLTR), the nation's largest $1.00 discount variety store chain, announced today that it has signed a definitive merger agreement with a New York-based $1.00 store operator ("ONLY $ONE"). The privately-held corporation, established in 1991, owns and operates 24 stores under the name "ONLY $ONE." The stores offer variety merchandise at a fixed price of $1.00 or less and are located in New York state. For the calendar year ended December 31, 1998, ONLY $ONE reported net sales of $25.3 million.

The merger is expected to be accretive to Dollar Tree's current year earnings, without synergies and before one-time costs associated with the merger, which costs are estimated to be approximately $1.0 million.

Commenting on the merger, Macon Brock, President and CEO of Dollar Tree, stated, "The proposed merger with ONLY $ONE allows us to increase Dollar Tree's presence in the New York region. The ONLY $ONE stores are well positioned in attractive locations and average approximately 10,000 square feet. This merger complements our strategy of opening larger Dollar Tree stores in diverse markets."

Under the terms of the agreement, shares of Dollar Tree common stock will be issued in exchange for shares of the acquired company. The number of shares will be determined by dividing $20 million by the average closing price of Dollar Tree's common stock for the four days prior to the consummation of the merger. The stock-for-stock transaction will be accounted for as a pooling-of-interests and is expected to close by the end of June 1999, subject to customary conditions.

As a result of the proposed merger, Dollar Tree has upwardly revised its 1999 store opening plans. Dollar Tree expects to add 230 to 235 stores in 1999, including the 24 ONLY $ONE stores. Total square footage is expected to increase approximately 26% for the year.

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 1,250 stores in 32 states as of June 14, 1999.

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 and growth prospects that may be realized from the merger, and one-time costs related to the merger. 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 failure of the merger to be consummated and the failure of the combined company to integrate successfully. Additionally, forward-looking statements are subject to, but not limited to, the risks indicated in the Company's filings with the Securities and Exchange Commission.

CONTACT: Dollar Tree Stores, Inc., Chesapeake Eric Coble or Erica Robb, 757/321-5000 www.DollarTreeStoresInc.com