DOLLAR
TREE ANNOUNCES INTENT TO ACQUIRE DEAL$ STORES
CHESAPEAKE,
Va. - February 22, 2006
- Dollar
Tree Stores, Inc. (NASDAQ: DLTR), the nation’s largest $1.00 discount variety
store chain, today announced that it has signed a Letter of Intent to purchase
stores and related assets of the Deal$-Nothing Over a Dollar chain, which is
owned by SUPERVALU INC. (NYSE:SVU).
Under
the
terms of the proposed agreement, Dollar Tree would acquire 138 Deal$ stores
including store assets, leasehold rights and certain intellectual property
for
approximately $30.5 million in cash, subject to customary closing conditions.
In
addition, Dollar Tree will purchase a yet-to-be- determined amount of inventory
from Deals. It is anticipated that the transaction will be completed by the
end
of March.
Based
in
St. Louis, MO, Deal$ stores offer a wide assortment of quality general
merchandise, contemporary seasonal goods and everyday consumables. The stores
average 11,000 gross square feet and operate in 16 states: Alabama, Arkansas,
Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Missouri, Ohio,
Oklahoma, Pennsylvania, Tennessee, West Virginia and Wisconsin.
“I
am
excited about the opportunity that this acquisition provides to expand our
presence in the Midwest and Southeast regions,” said Bob Sasser, President and
CEO. “We have existing logistics capacity to service all of these stores
efficiently with no additional capital expenditure. Furthermore, the Deals
acquisition includes a number of “combo” stores that offer an expanded
assortment of merchandise including items selling for more than $1. All Deal$
stores will continue to operate under the Deal$ banner and they will provide
an
opportunity to leverage the Dollar Tree infrastructure in the development of
a
multi priced business without disrupting the single price point model in Dollar
Tree Stores.
The
Company will provide further commentary on this transaction, along with a review
of fourth quarter 2005 operating results and initial 2006 guidance during the
Company’s fourth quarter conference call at 9:00 a.m. EST Wednesday, February
22, 2006. The telephone number for the call is 703-639-1375. A recorded version
of the call will be available until midnight Friday, March 3, and may be
accessed by dialing 703-925-2533. The access code is 844398. A webcast of the
call will be available 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 Friday, March 3.
Dollar
Tree Stores, Inc. operates 2,914 stores in 48 states as of January 28,
2006.
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, will, anticipate, expect,
intend, plan, forecast, outlook, or estimate. For example, our forward looking
statements include statements regarding the completion of the transaction,
the
related terms of the transaction, and the future of the combined businesses.
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 December 8, 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
Timothy
J. Reid
757-321-5284
www.DollarTree.com