ShopKo June Comp Store Slaes Decline 4.8%

ShopKo Stores, Inc. reported consolidated sales for the five weeks ended July 2, 2005 decreased 4.2% to $288.7 million from $301.2 million during the same period last year. Consolidated comparable store sales decreased 4.8%.

         Sales Summary by Business Segment (dollars in millions)

  Retail Segments                 Period Ended               % Change
   5 Weeks:                           7/2/05          Total**        Comp*
     ShopKo                           $207.0           (6.0)%        (6.4)%
     Pamida                             81.7            0.8          (0.5)
     Total Retail                     $288.7           (4.2)%        (4.8)%

   22 Weeks:
     ShopKo                           $895.5           (6.5)%        (6.8)%
     Pamida                            331.5            0.4          (1.0)
     Total Retail                   $1,227.0           (4.7)%        (5.3)%


  *  Comparable store sales represent sales of those stores open during both
     fiscal years and do not include sales from the ShopKo wholesale optical
     lab.
  ** ShopKo division total sales variance reflects sales from one closed
     ShopKo location in fiscal 2004 and three new ShopKo Express Rx
     locations.  Pamida division total sales variance reflects sales from
     five closed Pamida locations and seven new locations in fiscal 2004.
     Sales variance also reflects sales from two closed Pamida locations and
     three new locations in fiscal 2005.

The company expects consolidated comparable store sales for the month of July to be in the negative low single digit range.