"George Kolber has an outstanding record in turning around companies experiencing difficulties," said Mr. Schottenstein, referring most recently to Mr. Kolber's success at American Eagle Outfitters. "He is well acquainted with Value City having previously served as an officer of the Company for several years, including 1991 when its successful initial public offering took place. He will lend his great skills to take Value City to new performance levels."

Mr. Kolber said, "I am very excited to head an organization with the tremendous potential of Value City Department Stores. I look forward to working with the recently appointed President and Chief Merchandising Officer, Alan Schlesinger, and with the rest of the management team to restore strong profitability to Value City and to grow its subsidiaries, Filene's Basement and DSW Shoe Warehouse." Mr. Kolber, who has been Chief Operating Officer of American Eagle Outfitters, Inc. for the past five years (Nasdaq: AEOS - news), will continue to serve on American Eagle's Board of Directors as its Vice Chairman. He also serves as a National Board member of Jumpstart, a non-profit educational organization focused on eradicating illiteracy in the U.S.

Value City Department Stores, Inc. is a leading off-price retailer currently operating 120 full-line department stores in the Midwest, mid- Atlantic and southeastern U.S., 19 Filene's Basement stores and 75 better- branded DWS Shoe Warehouse stores in the major metropolitan areas throughout the country.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which represent our expectations or beliefs concerning future events, specifically regarding growth and return to profitability. All forward-looking statements involve material risks and uncertainties and are subject to change based on factors beyond our control. Such factors include, but are not limited to those risks described in our filings with the Securities and Exchange Commission and the risk that our turnaround plans may not be successful. We do not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.