Duckwall-ALCO Takes Strategic Actions To Focus On ALCO Stores And Enhance Profitability

Wilson added that consumers have responded positively to the many changes, improving the recent sales trends in ALCO stores and the productivity of space and inventory. Conversely, sales at Duckwall stores have been declining in recent years.

The 44 Duckwall stores have a total of 267 full- and part-time associates. Forty-three of the stores will close permanently and one Duckwall store in Hettinger, ND, will reopen as an ALCO store. Customers of a number of the Duckwall stores will find broad line ALCO stores located within driving distance.

The Company expects to record expenses of approximately $1.8 million during the fourth quarter for closing costs attributable to severance, lease liability, inventory liquidation and other related costs. Upon conclusion of the closing process, the Company expects to redeploy approximately $4.0 million in capital to the ALCO stores.

Wilson concluded, "This was not an easy decision to make, and we know it will have an impact on our employees and the local communities we serve. We wish to express our thanks to the many customers who have become our friends over the years, and we also thank all of our Duckwall employees who have served our Company faithfully during that time."

About Duckwall-ALCO Stores, Inc.

Duckwall-ALCO Stores, Inc. is a regional broad line retailer that specializes in meeting the needs of smaller, underserved communities across 23 states, primarily in the central United States. The Company offers an exceptional selection of quality products and recognized brand names at reasonable prices. Its specialty is delivering those products with the friendly, personal service its customers have come to expect. With 214 ALCO stores, the Company is proud to have continually provided excellent products at good value prices to its customers for 109 years. To learn more about the company visit www.ALCOstores.com .

The Duckwall-ALCO Stores, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5865

Forward-looking statements

This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 ("the Act"). Forward-looking statements can be identified by the inclusion of "will," "believe," "intend," "expect," "plan," "project" and similar future-looking terms. You should not rely unduly on these forward-looking statements. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments, and Company performance. Forward-looking statements inherently involve risks and uncertainties, and, accordingly, actual results may vary materially. Factors which could significantly change results include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition, and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's 10-Q filings and other public documents, copies of which are available from the Company on request and are available from the United States Securities and Exchange Commission.

CONTACT:  Duckwall-ALCO Stores, Inc.
          Wayne S. Peterson, Senior Vice President -
           Chief Financial Officer
          785-263-3350 X164
          [e-mail]

          Hagen and Partners
          Debbie Hagen
          913-652-6547
          [e-mail]

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