The Bon-Ton Completes Acquisition of Elder-Beerman

The Bon-Ton Stores, Inc. has completed its tender offer for all outstanding shares of common stock of The Elder-Beerman Stores Corp. at a price of $8.00 per share in cash.

The Bon-Ton also stated that it had been advised by American Stock Transfer & Trust Company, the Depositary, that a total of 10,893,005 shares (including 25,150 shares subject to guarantees of delivery) had been tendered pursuant to the offer which expired at 9:00 a.m., New York City time, on Friday, October 24, 2003, and that all such shares have been accepted for purchase in accordance with the terms of the offer.

Payment for shares properly tendered and accepted was made today to the Depositary in accordance with the terms of the offer and, in the case of shares tendered by guaranteed delivery procedures, will be made promptly after delivery of shares and required documentation.

In connection with the offering, The Bon-Ton has executed financing agreements having a combined commitment of $575 million.

Shortly after payment was made for the shares tendered in the offer, Elder-Beerman and an indirect, wholly owned subsidiary of The Bon-Ton were merged in accordance with the terms of Ohio law pursuant to which Elder-Beerman became an indirect, wholly owned subsidiary of The Bon-Ton. As a consequence of the merger, all remaining Elder-Beerman shareholders are entitled to receive $8.00 cash price for each of their shares.

“Today marks an important milestone in the history of The Bon-Ton,” said Tim Grumbacher, Chairman and Chief Executive Officer of The Bon-Ton. “We are enthusiastic about working with this fine company and its dedicated management and employees to realize the enormous strategic and operational potential of this business combination. Together, we will operate 141 stores in 16 states, making us one of the largest independent retail department stores in the country. The increased geographic presence realized by this merger, along with the potential for continued growth, significant profit improvement and stronger purchasing leverage, are all major benefits of this merger.”