ShopKo Sees August Comp Sales Fall 9.3%

ShopKo Stores reported consolidated sales for the four weeks ended August 27, 2005 decreased 8.7% to $232.7 million from $254.8 million during the same period last year. Consolidated comparable store sales decreased 9.3%.

           Sales Summary by Business Segment (dollars in millions)

    Retail Segments                Period Ended          % Change
    4 Weeks:                         8/27/05          Total**       Comp*
      ShopKo                         $175.5           (9.6)%       (10.1)%
      Pamida                           57.2           (5.8)         (6.6)
      Total Retail                   $232.7           (8.7)%        (9.3)%

    30 Weeks:
      ShopKo                       $1,226.6           (6.8)%        (7.1)%
      Pamida                          446.3           (0.8)         (2.0)
      Total Retail                 $1,672.9           (5.2)%        (5.8)%

    *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 four closed Pamida locations and three new
    locations in fiscal 2005.

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