FDO Reports Sales

Family Dollar Stores, Inc. (NYSE: FDO) reported that sales for the four weeks ended May 28, 2005, increased 7.5% to approximately $442.5 million from $411.5 million for the four weeks ended May 29, 2004. For the four week period ended May 28, 2005, compared with the four week period ended May 29, 2004, comparable store sales increased approximately 0.2%. As of May 28, 2005, there were 5,681 stores in operation, including 34 stores that were opened in fiscal May 2005.

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