Stage Stores, Inc. reported total sales for the four-week period ended July 29, 2006 increased 19.3% to $112.6 million from $94.4 million in the prior year four-week period ended July 30, 2005. Comparable store sales increased 6.2% versus an increase of 2.4% last year. Comparable store sales do not include sales generated at the Company’s recently acquired B.C. Moore stores.

For the second quarter ended July 29, 2006, the Company reported that its total sales increased 17.0% to $362.1 million from $309.4 million last year, while comparable store sales for the quarter increased 4.5% versus an increase of 7.0% for the prior year period.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “We are very pleased with our same store sales results for July, which were broad based in nature, being driven by solid demand for products across our major merchandise categories. Our top performing businesses for the month included womens special sizes at +14.2%, misses sportswear at +10.7%, cosmetics at +8.3%, home decor at +7.8%, and childrens and junior sportswear at +7.2% each. We are also delighted with the strength of our business during the second quarter, having achieved a 4.5% comparable store sales increase versus our strong 7.0% increase last year.”

Mr. Scarborough further commented, “Looking forward, we are excited about our product offerings for the upcoming back-to-school selling season, and we are already encouraged by the pace of our business during July in our back-to school related categories, including childrens, young mens and juniors.”

                             SALES SUMMARY
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                          Comparable Store Sales Trend   Total Sales
                             % Increase (Decrease)     ($ in Millions)
                          ---------------------------- ---------------

      Fiscal Period           2006           2005       2006    2005
------------------------- ------------- -------------- ------- -------
       1st Quarter             3.2            4.9       343.5   310.1
           May                 4.0            7.0       116.1   100.0
           June                3.5           11.0       133.4   115.0
           July                6.2            2.4       112.6    94.4
       2nd Quarter             4.5            7.0       362.1   309.4
   Year-To-Date (6 mos)        3.8            5.9       705.6   619.5

Commenting on the Company’s second quarter EPS outlook, Mr. Scarborough stated, “Based on our preliminary operating results, we currently expect to exceed the high end of our previously provided earning guidance range for the second quarter of $0.17 per diluted share.”