Exhibit 99.1

PRESS RELEASE

DOLLAR TREE STORES, INC.

REPORTS SECOND QUARTER NET EARNINGS PER DILUTED SHARE OF $0.25

CHESAPEAKE, Va. – August 24, 2005 – Dollar Tree Stores, Inc. (NASDAQ: DLTR), the nation’s leading operator of single-price point dollar stores, reported net earnings per diluted share of $0.25, for the fiscal second quarter ended July 30, 2005. Sales for the quarter were $769.0 million, a 9.2% increase compared to $704.2 million, for the same period, one year ago. Comparable store sales declined 1.5% for the quarter.

“An increase in our average ticket was more than offset by reduced store traffic,” said President and CEO Bob Sasser. “While we achieved sales within our most recent guidance, it is evident that our customers continue to feel the strain of rising fuel costs, and they are responding with fewer shopping trips. We remain focused on our sales initiatives as we manage all aspects of our business.”

For the second quarter, gross margin was 34.0%, compared to the 35.6% in last year’s second quarter. Loss of leverage on occupancy costs, coupled with higher merchandise costs resulting from mix and higher freight costs attributed to most of the decline. The 2004 second quarter results also included a favorable shrink true-up which accounted for the balance of the rate decline in the year-on-year comparison.

Selling, general and administrative expenses, as a percentage of sales, were 27.9% in the second quarter of 2005, compared to 28.6% in the same quarter last year. The reduction in rate reflects the Company’s continual dedication to expense control as well as meaningful savings in health care costs and workers compensation expenses.

It is also noteworthy that depreciation expense, as a percent of sales, was flat for the quarter, when compared to last year.

Operating margin in this year’s second quarter was 6.1%, versus 7.0% for the same period, one year ago.

The Company estimates sales for the third quarter of 2005 to be in the range of $775 -$800 million. Based upon this sales forecast, diluted earnings per share is estimated to be in the range of $0.28 to $0.31.

Full year sales are now forecasted to be in the range of $3.33 billion - $3.38 billion. Full year diluted earnings per share are expected to be in the range of $1.57 - $1.66.

On Wednesday, August 24, 2005, the Company will host a conference call to discuss its earnings results at 9:00 a.m EDT. The telephone number for the call is 703-639-1163. A recorded version of the call will be available until midnight Tuesday, August 30, and may be accessed by dialing 703-925-2533, and the access code is 750327. A webcast of the call is accessible through Dollar Tree’s website, www.DollarTree.com, as well as at Vcall’s website, www.Vcall.com, and will remain on-line until midnight Tuesday, August 30. Any financial and statistical information related to the call can be accessed through the “Investor Relations / SEC Filings / Non-GAAP Measures” section of Dollar Tree’s website.

The Company’s regular, pre-recorded business update will be available Thursday, October 6, 2005, by 5:00 p.m. EDT, and will remain on-line through Monday, October 10, 2005. Interested parties can access the Company’s update by dialing (757) 321-5873.

As of July 30, 2005, Dollar Tree operated 2,856 stores in 48 states. During the second quarter, Dollar Tree opened 74 stores, closed 9 stores, and expanded or relocated 27 stores. The Company’s retail selling square footage totaled approximately 22.2 million at July 30, 2005, an 18.7% increase compared to a year ago.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: This press release contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward looking statements address future events, developments or results and typically use words such as believe, anticipate, expect, intend, plan, forecast, or estimate. For example, our forward-looking statements include statements regarding our expectations for sales initiatives, third-quarter sales and earnings per share, as well as full year sales and earnings per share. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the “Risk Factors,” “Business,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K filed April 14, 2005 and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our Quarterly Report on Form 10-Q filed June 9, 2005. Also, carefully review “Risk Factors” in our most recent prospectuses filed November 15, 2000 and August 3, 2000. In light of these risks and uncertainties, the future events, developments or results described by our forward-looking statements in this document could turn out to be materially and adversely different from those we discuss or imply. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

CONTACT:		Dollar Tree Stores, Inc., Chesapeake
		Kent Kleeberger, 757-321-5000
		www.DollarTree.com

DOLLAR TREE STORES, INC.

Condensed Consolidated Income Statements

(Dollars in thousands, except per share data)

		Second Quarter ended								Year-to-Date
		July 30, 2005				July 31, 2004				July 30, 2005				July 31, 2004
Net sales		$	769,027			$	704,234			$	1,518,120			$	1,414,564
Cost of sales			507,541				453,861				1,002,390				911,155
Gross profit			261,486				250,373				515,730				503,409
			34.0	%			35.6	%			34.0	%			35.6	%
Selling, general & administrative expenses			214,902				201,289				421,072				395,666
			27.9	%			28.6	%			27.7	%			28.0	%
Operating income			46,584				49,084				94,658				107,743
			6.1	%			7.0	%			6.2	%			7.6	%
Interest expense, net			(3,071	)			(1,235	)			(4,607	)			(3,313	)
Other income			216				301				471				911
Income before income taxes			43,729				48,150				90,522				105,341
			5.7	%			6.8	%			6.0	%			7.4	%
Income tax expense			16,419				18,558				34,200				40,599
Net income			27,310				29,592				56,322				64,742
			3.6	%			4.2	%			3.7	%			4.6	%
Net earnings per share:
Basic		$	0.25			$	0.26			$	0.51			$	0.57
Weighted average number of shares			108,386				113,527				109,823				113,671
Diluted		$	0.25			$	0.26			$	0.51			$	0.57
Weighted average number of shares			108,823				114,149				110,310				114,442

DOLLAR TREE STORES, INC.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

		July 30, 2005			Jan. 29, 2005			July 31, 2004
Cash and cash equivalents		$	14,533		$	106,532		$	59,513
Short-term investments			151,015			211,275			122,305
Merchandise inventories			629,833			615,483			648,680
Other current assets			33,821			36,597			32,136
Total current assets			829,202			969,887			862,634
Property and equipment, net			691,628			685,386			664,320
Intangibles, net			130,935			129,032			123,265
Other assets, net			28,047			8,367			21,763
Total assets		$	1,679,812		$	1,792,672		$	1,671,982
Current portion of long-term debt		$	19,000			19,000		$	19,000
Accounts payable			120,374			124,195			158,065
Other current liabilities			103,123			117,491			97,495
Income taxes payable			5,308			33,669			5,450
Total current liabilities			247,805			294,355			280,010
Long-term debt, excluding current portion			250,000			250,000			250,000
Other liabilities			84,812			84,105			83,440
Total liabilities			582,617			628,460			613,450
Shareholders’ equity			1,097,195			1,164,212			1,058,532
Total liabilities and shareholders’ equity		$	1,679,812		$	1,792,672		$	1,671,982
STORE DATA:
Number of stores open at end of period			2,856			2,735			2,612
Total selling square footage (in thousands)			22,160			20,444			18,665

DOLLAR TREE STORES, INC.

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

		Year-to-Date
		July 31, 2005				July 31, 2004
Cash flows from operating activities:
Net income		$	56,322			$	64,742
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization			68,105				62,818
Other non-cash adjustments			(8,411	)			11,774
Changes in merchandise inventories			(14,349	)			(123,037	)
Other changes in working capital			(32,629	)			13,450
Total adjustments			12,716				(34,995	)
Net cash provided by operating activities			69,038				29,747
Cash flows from investing activities:
Capital expenditures			(74,477	)			(93,243	)
Purchase of short-term investments			(497,745	)			(112,500	)
Proceeds from maturities of short-term investments			558,005				74,690
Restricted investments			(15,147	)			—
Acquisition of favorable lease rights			(3,331	)			(251	)
Net cash used in investing activities			(32,695	)			(131,304	)
Cash flows from financing activities:
Proceeds from long-term debt, net of facility fees of $1,094			—				248,906
Repayment of long-term debt and facility fees			—				(148,568	)
Principal payments under capital lease obligations			(3,521	)			(2,313	)
Proceeds from stock issued pursuant to stock-based compensation plans			5,549				9,184
Payments for share repurchases			(130,370	)			(30,329	)
Net cash provided by (used in) financing activities			(128,342	)			76,880
Net decrease in cash and cash equivalents			(91,999	)			(24,677	)
Cash and cash equivalents at beginning of period			106,532				84,190
Cash and cash equivalents at end of period		$	14,533			$	59,513