Stage Stores May Comps Increase 4.0%

Stage Stores, Inc. total sales for the four-week period ended May 27, 2006 increased 16.1% to $116.1 million from $100.0 million in the prior year four-week period ended May 28, 2005. Comparable store sales increased 4.0% versus an increase of 7.0% last year. The Company noted that its comparable store sales do not include the sales generated by the acquired B.C. Moore stores.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “We are pleased with our 4.0% comparable store sales gain in May, which was on top of the strong 7.0% comparable store sales increase we achieved last year. Our customers continued to react favorably to our spring and summer product offerings, resulting in solid sales gains and successful Mother’s Day and Memorial Day related sales events.”

The Company stated that its merchandise categories with the best comparable store sales performance for the month included women’s special sizes (+9.1%), accessories (+8.9%), home decor (+7.7%), junior sportswear (+6.5%) and cosmetics (+6.1%).

                             SALES SUMMARY

                 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
  Year-To-Date       3.4            5.4          459.6        410.1

During May, the Company opened a Peebles store in Leechburg, Pennsylvania and a Stage store in Payson, Arizona, and reopened its hurricane-damaged store in Orange, Texas. The Company also relocated its stores in Eunice, Louisiana and Kilgore, Texas to higher potential locations, and expanded its stores in Henderson, Texas and Tappahannock, Virginia.

For the entire 2006 fiscal year, the Company continues to anticipate opening a total of 108 new stores (106 net), which includes the conversion of 69 of the acquired B.C. Moore stores to Peebles stores. With regard to its conversion activities, the Company reported that all aspects are still on track, with the first group of converted Peebles stores scheduled to open for business during the first week of August.