Shopko February Comps Down 3.4%

ShopKo Stores consolidated sales for the four weeks ended February 26, 2005 decreased 3.0% to $212.9 million from $219.5 million during the same period last year. Consolidated comparable store sales decreased 3.4 percent.

           Sales Summary by Business Segment (dollars in millions)
     Retail Segments               Period Ended               % Change
     4 Weeks:                         2/26/05          Total**         Comp*
       ShopKo                         $157.8           (5.4)%          (5.6)%
       Pamida                           55.1            4.5             3.4
       Total Retail                   $212.9           (3.0)%          (3.4)%
    *  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.

Although sales at the ShopKo division were below expectations, the division continues to focus on gross margin performance.

For the month of March 2005, the company expects to be positively impacted by the Easter holiday shift and expects consolidated comparable store sales to be in the positive low single digit range.