About Dollar General Corporation
Dollar General Corporation has been delivering value to shoppers for over 75 years through its mission of Serving Others. Dollar General helps shoppers Save time. Save money. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at low everyday prices in convenient neighborhood locations. With 13,429 stores in 44 states as of March 3, 2017, Dollar General is among the largest discount retailers in the United States. In addition to high quality private brands, Dollar General sells products from America's most-trusted brands such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola.

Dollar General Announces Fourth Quarter and Fiscal Year Results and 2004 Outlook; Agrees in Principle with SEC

March 15, 2004

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--March 15, 2004--Dollar General Corporation (NYSE: DG) today reported fiscal 2003 net income of $301.0 million, or $0.89 per diluted share, an increase of 13.6 percent compared to net income of $264.9 million, or $0.79 per diluted share in 2002. Excluding the following restatement-related items, net income for fiscal 2003 would have been $311.4 million, or $0.92 per diluted share, an increase of 24.1 percent compared to 2002 net income of $250.9 million, or $0.75 per diluted share:

    --  During the fourth quarter of fiscal 2003, the Company recorded
        an accrual of $10 million related to a civil penalty, which is
        not deductible for tax purposes, to be paid by the Company
        under the terms of an agreement in principle reached with the
        Securities and Exchange Commission ("SEC") staff to settle the
        previously disclosed SEC investigation relating to Dollar
        General's January 14, 2002 restatement of its 1998 and 1999
        financial statements and certain unaudited financial
        information for fiscal year 2000. The agreement is subject to
        approval by the SEC and the court in which the SEC's complaint
        is filed.

    --  In fiscal 2002 the Company recorded net insurance proceeds of
        approximately $29.5 million relating to the restatement.

    --  Selling, general and administrative expenses included
        restatement-related expenses of $0.6 million in fiscal 2003
        and $6.4 million in fiscal 2002.

"I am very pleased with our financial results for the year," said David Perdue, Chairman and Chief Executive Officer. "I am also very pleased that the uncertainty relating to the SEC investigation of the Company's restatement seems to be coming to a close."

Fiscal 2003

For the 2003 fiscal year, net sales totaled $6.87 billion, an increase of 12.6 percent over fiscal 2002 sales of $6.10 billion. The increase resulted primarily from 587 net new stores and a same-store sales increase of 4.0 percent.

Gross profit for 2003 was $2.02 billion, or 29.4 percent of net sales, compared with $1.72 billion, or 28.3 percent of net sales in 2002. The increase in gross profit as a percent to sales is the result of higher initial merchandise markups, a reduction in the provision for inventory shrinkage and a reduction in transportation expenses as a percentage of sales.

Selling, general and administrative ("SG&A") expenses for 2003 were $1.50 billion, or 21.8 percent of sales, compared with $1.30 billion, or 21.3 percent of sales ($1.29 billion, or 21.1 percent of sales, excluding restatement-related items), in 2002. The increase in SG&A, as a percentage of sales, is primarily due to increases in store labor costs, the cost of workers' compensation and other insurance programs, store occupancy costs and bonus expense, all of which increased by more than the 12.6 percent increase in sales.

Net interest expense in 2003 was $31.5 million compared with $42.6 million in 2002, resulting from lower debt levels in 2003. As of January 30, 2004, the Company's cash and cash equivalents were $398.3 million, exceeding total outstanding long-term obligations, including current portion, of $282.0 million, by $116.3 million.

Though the Company's store selling square footage increased 10.1 percent, merchandise inventories increased by only 3.0 percent to $1.16 billion at January 30, 2004, from $1.12 billion at January 31, 2003. Average annual inventory turns increased to 4.0 times in 2003 from 3.8 times in 2002.

Cash capital expenditures for 2003 totaled $149.4 million compared with $134.3 million for 2002. During the year, the Company opened 673 new stores, relocated or remodeled 76 stores and closed 86 stores. As of January 30, 2004, the Company operated 6,700 stores with approximately 45.4 million selling square feet. Capital expenditures for the year also included additional investments in store technology and distribution and transportation, including the commencements in 2003 of the expansions at the Company's Ardmore, Oklahoma, and South Boston, Virginia distribution centers, scheduled for completion in 2004.

In addition, during the fourth quarter of 2003, the Company repurchased approximately 1.5 million shares of its common stock at a total cost of $29.7 million. The Company's current authorization to purchase up to 12 million shares of its common stock expires March 13, 2005.

Additional significant accomplishments during the 2003 fiscal year included:

    --  Expansion of the perishable foods/cooler program from 1,367
        stores to 2,445 stores at year-end.

    --  Implementation of automatic replenishment of all core
        merchandise in an additional 2,473 stores, improving
        operational efficiencies and increasing store inventory
        in-stock levels.

    --  Selection of Union County, South Carolina as the site of the
        Company's eighth distribution center, scheduled to open in
        2005.

    --  Increased return on invested capital ("ROIC") to 13.3 percent
        in 2003 from 12.9 percent in 2002. Excluding
        restatement-related items, ROIC increased to 13.6 percent in
        2003 from 12.5 percent in 2002.

    Fourth Quarter Results

For the fourth quarter of 2003, Dollar General reported net income of $102.8 million, or $0.30 per diluted share, a decrease of 4.9 percent compared to net income of $108.1 million, or $0.32 per diluted share in 2002. Excluding restatement-related items, net income increased 3.4 percent to $113.0 million, or $0.33 per diluted share, in 2003 from $109.3 million, or $0.33 per diluted share, in 2002.

Net sales for the fourth quarter, totaled $1.97 billion in fiscal 2003, an increase of 11.8 percent over fourth quarter fiscal 2002 sales of $1.76 billion. The increase resulted primarily from 587 net new stores and a same-store sales increase of 3.3 percent.

Gross profit during the quarter was $576.5 million, or 29.3 percent of sales, versus $528.0 million, or 30.0 percent of sales, in the prior year. The significant factors contributing to the decrease in gross profit as a percentage of sales were a lower purchase markup in the fourth quarter of 2003 compared to 2002, increased markdowns on Christmas merchandise and other discontinued or slower moving items, and the impact of an $8.9 million credit to the Company's inventory LIFO reserve recorded in the fourth quarter of 2002 compared to a $0.7 million expense in 2003.

Selling, general and administrative expenses for the quarter were $391.4 million, or 19.9 percent of sales, in the current year, versus $350.4 million, or 19.9 percent of sales, in the prior year. Net interest expense decreased by 33.4 percent to $6.2 million in the current year quarter compared to $9.3 million in the prior year. The decrease is primarily attributable to lower average debt outstanding in the current year quarter.

2004 Outlook

The Company projects net income, excluding restatement-related items, to increase 10 to 14 percent in fiscal 2004. Commenting on the net income outlook for 2004, Perdue said, "We have provided a net income outlook for 2004 that is consistent with our internal plan, but I would like to add a cautionary note that, because of our initiatives, 2004 could be a year when earnings are difficult to predict for Dollar General. We are currently managing through quite a bit of change at the Company, and though I am confident that we are doing the right things, change also brings with it some risk. We have a new management team that continues to evolve. Our operating initiatives should have positive long-term benefits, but they have the potential to be disruptive in the near-term. Also, in 2004 we will be comparing ourselves against strong performance in 2003, which included a significant increase in our gross margin rate. We currently do not expect to repeat that level of gross margin rate expansion in 2004."

In 2004, Dollar General plans to spend approximately $300 million on the following capital expenditure initiatives:

    --  Open approximately 675 new Dollar General stores and 20 Dollar
        General Market stores (expect to close 60 to 80 stores)

    --  Begin construction of the Union County, South Carolina
        distribution center, scheduled to open in 2005

    --  Complete the expansions and conversions to dual sortation of
        the Ardmore, Oklahoma and South Boston, Virginia distribution
        centers

    --  Install coolers in approximately 3,500 stores, including new
        stores

    --  Add fixtures for certain departments in selected stores

In addition, the following are highlights of the Company's more significant operating initiatives for 2004:

    --  Implement automatic replenishment in all stores and improve
        overall store in-stock levels

    --  Implement new merchandising initiatives, including changes to
        improve the productivity of larger stores, increased focus on
        opportunistic purchases, and various store planogram changes

    --  Complete a store workflow analysis project and begin
        implementing changes to improve store procedures

    --  Continue to focus on inventory shrink reduction

    --  Decrease store manager turnover rate

    Update on SEC Investigation of Restatement

During the fiscal fourth quarter, the Company reached an agreement in principle with the SEC staff to settle the SEC investigation relating to Dollar General's January 14, 2002 restatement of its 1998 and 1999 financial statements and certain unaudited financial information for fiscal year 2000. In connection with the agreement in principle, Dollar General will consent, without admitting or denying the allegations, in a complaint to be filed by the SEC, to the entry of a permanent civil injunction against future violations of the antifraud, books and records, reporting and internal control provisions of the federal securities laws and related SEC rules and will pay a $10 million civil penalty. This penalty, which is not deductible for income tax purposes, was recorded in the Company's financial statements in the fourth quarter of 2003. The agreement with the SEC staff is subject to final approval by the SEC and the court in which the SEC's complaint is filed. The Company can give no assurances that the SEC or the court will approve this agreement. If the agreement is not approved, the Company could be subject to different or additional penalties, both monetary, and non-monetary, which could adversely affect the Company's financial statements as a whole.

Conference Call

The Company will host a conference call today at 10 a.m. EST. The security code for the conference call is "Dollar General." If you wish to participate, please call (334) 260-2280 at least 10 minutes before the conference call is scheduled to begin. A webcast of the call can also be accessed live on Dollar General's Web site at www.dollargeneral.com by clicking on the home page spotlight item. A replay of the conference call will be available until 5 p.m. EST on Monday, March 29, online or by calling (334) 323-7226. The access code for the replay is 40954 and the pass code is 86362.

Non-GAAP Disclosures

This release, or the tables accompanying this release, includes certain financial information not derived in accordance with generally accepted accounting principles ("GAAP"), including net income (historical and projected), diluted earnings per share, SG&A, operating profit margin, return on invested capital and return on assets, each of which excludes restatement-related items. The Company believes that this information is useful to investors as it indicates more clearly the Company's comparative year-to-year operating results. Management may also use this information to better understand the Company's underlying operating results. In addition, the return on invested capital, included in this release, may be considered a non-GAAP financial measure. Management believes that return on invested capital is useful because it provides investors with additional useful information for evaluating the efficiency of the Company's capital deployed in its operations. None of this information should be considered a substitute for any measures derived in accordance with GAAP. The Company has included its calculation of return on invested capital and reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures in the accompanying schedules.

Forward-Looking Information

This press release contains forward-looking information, such as information regarding the Company's 2004 outlook, including without limitation, annual net income guidance, growth targets, capital expenditures and key plans and operating initiatives, as well as the anticipated settlement with the SEC. The words "believe," "anticipate," "project," "plan," "schedule," "expect," "estimate," "objective," "forecast," "goal," "intend," "will likely result," or "will continue" and similar expressions generally identify forward-looking statements. These matters involve risks, uncertainties and other factors that may cause the actual performance of the Company to differ materially from that expressed or implied by these forward-looking statements. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate and, therefore, actual results may differ materially from those projected by, or implied in, the forward-looking statements. The factors that may result in actual results differing from such forward-looking information, include, but are not limited to: transportation and distribution delays or interruptions; the impact on transportation costs from the "driver hours of service" regulations adopted by the Federal Motor Carriers Safety Administration, which became effective on January 4, 2004; the Company's ability to negotiate effectively the cost and purchase of merchandise; inventory risks due to shifts in market demand; changes in product mix; interruptions in suppliers' businesses; costs and potential problems and interruptions associated with implementation of new or upgraded systems and technology; fuel price and interest rate fluctuations; changes in overall economic conditions that may impact consumer spending; disruptions in our information or distribution systems or impediments to the flow of imports or domestic products to the Company caused by existing military efforts or by acts of war or terrorism; temporary changes in demand due to weather patterns; seasonality of the Company's business; competition in the retail industry; delays associated with building, opening and operating new stores; delays associated with building, opening, expanding and converting new or existing distribution centers; the ability of the Company to execute operating initiatives; insurance costs; the impact to the Company's reputation or financial statements as a whole of the SEC inquiry related to the restatement of certain of the Company's financial statements or the ultimate resolution of that inquiry; and other risk factors discussed from time to time in our SEC filings, including but not limited to our Annual Report on Form 10-K.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Except as may be required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events. Readers are advised, however, to consult any further disclosures the Company may make on related subjects in its public disclosures or documents filed with the SEC.

In accordance with the interpretations of the staff of the Securities and Exchange Commission and the normal procedures of the Company's auditors, the Company's financial statements for the 2003 fiscal year will not be deemed to have been issued until the Company's Annual Report on Form 10-K is filed and, as a result, the Company's financial statements will necessarily remain subject to adjustment until such filing.

              DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
                      Consolidated Balance Sheets
           (Dollars in thousands, except per share amounts)


                                               January 30, January 31,
                                                  2004        2003
                                               ----------- -----------
ASSETS
Current assets:
   Cash and cash equivalents                     $398,278    $121,318
   Merchandise inventories                      1,157,141   1,123,031
   Deferred income taxes                           30,413      33,860
   Other current assets                            66,383      45,699
----------------------------------------------------------------------
   Total current assets                         1,652,215   1,323,908
----------------------------------------------------------------------
Net property and equipment                        989,224     993,822
----------------------------------------------------------------------
Other assets, net                                  11,270      15,423
----------------------------------------------------------------------
Total assets                                   $2,652,709  $2,333,153
======================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current portion of long-term obligations       $16,670     $16,209
   Accounts payable                               383,791     341,303
   Accrued expenses and other                     297,616     239,898
   Income taxes payable                            45,725      67,091
----------------------------------------------------------------------
   Total current liabilities                      743,802     664,501
----------------------------------------------------------------------
Long-term obligations                             265,337     330,337
----------------------------------------------------------------------
Deferred income taxes                              66,650      50,247
----------------------------------------------------------------------
Commitments and contingencies
Shareholders' equity:
   Series B junior participating preferred
    stock, stated value $0.50 per share; Shares
    authorized: 10,000,000; Issued:  None               -           -
   Common stock, par value $0.50 per share;
    Shares authorized:  500,000,000; Issued:
    2003-336,190,000; 2002-333,340,000            168,095     166,670
   Additional paid-in capital                     376,930     313,269
   Retained earnings                            1,037,409     812,220
   Accumulated other comprehensive loss            (1,161)     (1,349)
----------------------------------------------------------------------
                                                1,581,273   1,290,810
   Less common stock purchased by employee
    deferred compensation trust; shares:
    2003-151,000; 2002-140,000                      2,739       2,742
   Less unearned compensation related to
    outstanding restricted stock                    1,614           -
----------------------------------------------------------------------
   Total shareholders' equity                   1,576,920   1,288,068
----------------------------------------------------------------------
Total liabilities and shareholders' equity     $2,652,709  $2,333,153
======================================================================



              DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
                   Consolidated Statements of Income
           (Dollars in thousands, except per share amounts)


                                        For the Years Ended
                             -----------------------------------------
                             January 30, % of Net January 31, % of Net
                                2004      Sales     2003       Sales
                             -------------------- --------------------
Net Sales                     $6,871,992  100.00% $6,100,404   100.00%
Cost of goods sold             4,853,863   70.63   4,376,138    71.74
----------------------------------------------------------------------
Gross profit                   2,018,129   29.37   1,724,266    28.26
Selling, general and
 administrative                1,496,866   21.78   1,296,542    21.25
Penalty and litigation
 settlement proceeds              10,000    0.15     (29,541)   (0.48)
----------------------------------------------------------------------
Operating profit                 511,263    7.44     457,265     7.50
Interest expense, net             31,503    0.46      42,639     0.70
----------------------------------------------------------------------
Income before taxes on income    479,760    6.98     414,626     6.80
Provisions for taxes on
 income                          178,760    2.60     149,680     2.45
----------------------------------------------------------------------
Net income                      $301,000    4.38%   $264,946     4.34%
======================================================================

Diluted earnings per share         $0.89               $0.79
Weighted average diluted
 shares (000s)                   337,636             335,050
=============================================================


                                 For the Quarters (13 Weeks) Ended
                             -----------------------------------------
                             January 30, % of Net January 31, % of Net
                                2004      Sales      2003      Sales
                             -------------------- --------------------
Net Sales                     $1,966,488  100.00% $1,759,563   100.00%
Cost of goods sold             1,389,992   70.68   1,231,599    69.99
----------------------------------------------------------------------
Gross profit                     576,496   29.32     527,964    30.01
Selling, general and
 administrative                  391,373   19.90     350,419    19.92
Penalty                           10,000    0.51           -        -
----------------------------------------------------------------------
Operating profit                 175,123    8.91     177,545    10.09
Interest expense, net              6,217    0.32       9,333     0.53
----------------------------------------------------------------------
Income before taxes on income    168,906    8.59     168,212     9.56
Provisions for taxes on
 income                           66,077    3.36      60,126     3.42
----------------------------------------------------------------------
Net income                      $102,829    5.23%   $108,086     6.14%
======================================================================

Diluted earnings per share         $0.30               $0.32
Weighted average diluted
 shares (000s)                   339,866             334,659
=============================================================



              DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
                 Consolidated Statements of Cash Flows
                        (Dollars in thousands)

                                                 For the Years Ended
                                               -----------------------
                                               January 30, January 31,
                                                   2004        2003
                                               ----------- -----------
Cash flows from operating activities:
  Net income                                     $301,000    $264,946
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation and amortization                152,399     134,959
     Deferred income taxes                         19,850      82,867
     Tax benefit from stock option exercises       14,565       2,372
     Litigation settlement                              -    (162,000)
     Change in operating assets and
      liabilities:
        Merchandise inventories                   (34,110)      7,992
        Other current assets                      (20,684)     12,566
        Accounts payable                           42,488      18,840
        Accrued expenses and other                 59,344      14,610
        Income taxes                              (21,464)     56,458
        Other                                       5,166         430
----------------------------------------------------------------------
Net cash provided by operating activities         518,554     434,040
----------------------------------------------------------------------

Cash flows from investing activities:
  Purchase of property and equipment             (149,362)   (134,315)
  Purchase of promissory notes                    (49,582)          -
  Proceeds from sale of property and equipment        269         481
----------------------------------------------------------------------
Net cash used in investing activities            (198,675)   (133,834)
----------------------------------------------------------------------

Cash flows from financing activities:
  Repayments of long-term obligations             (15,907)   (397,094)
  Payment of cash dividends                       (46,883)    (42,638)
  Proceeds from exercise of stock options          49,485       5,021
  Repurchase of common stock, net                 (29,687)          -
  Other financing activities                           73      (5,702)
----------------------------------------------------------------------
Net cash used in financing activities             (42,919)   (440,413)
----------------------------------------------------------------------

Net increase (decrease) in cash and cash
 equivalents                                      276,960    (140,207)
Cash and cash equivalents, beginning of year      121,318     261,525
----------------------------------------------------------------------
Cash and cash equivalents, end of year           $398,278    $121,318
======================================================================

Supplemental cash flow information:
Cash paid during year for:
  Interest                                        $28,682     $41,605
  Income taxes                                   $165,248      $1,834
----------------------------------------------------------------------
Supplemental schedule of noncash investing and
 financing activities:
Purchase of property and equipment under
 capital lease obligations                           $996      $8,453
======================================================================



              DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
                    Selected Additional Information


                   Sales by Category (in thousands)
                   --------------------------------

                                            13 Weeks Ended
                                  -----------------------------------
                                  January 30,   January 31,     %
                                     2004          2003       Change
                                  ------------  ------------ --------
Highly consumable                  $1,112,081      $971,311     14.5%
Seasonal                              418,162       366,949     14.0%
Home products                         246,121       241,884      1.8%
Basic clothing                        190,124       179,419      6.0%
                                  ------------  ------------ --------
   Total sales                     $1,966,488    $1,759,563     11.8%
                                  ============  ============ ========


                                               Year Ended
                                  ------------------------------------
                                  January 30,   January 31,      %
                                     2004          2003       Change
                                  ------------  ------------ ---------
Highly consumable                  $4,206,878    $3,674,929      14.5%
Seasonal                            1,156,114       994,250      16.3%
Home products                         860,867       808,518       6.5%
Basic clothing                        648,133       622,707       4.1%
                                  ------------  ------------ ---------
   Total sales                     $6,871,992    $6,100,404      12.6%
                                  ============  ============ =========



                          New Store Activity
                          ------------------

                                                Year Ended
                                    ----------------------------------
                                    January 30, 2004  January 31, 2003
                                    ----------------  ----------------

Beginning store count                       6,113             5,540
New store openings                            673               622
Store closings                                 86                49
Net new stores                                587               573
Ending store count                          6,700             6,113
Total selling square footage (000's)       45,354            41,201



                       Customer Transaction Data
                       -------------------------

                           13 Weeks Ended            Year Ended
                       ----------------------- -----------------------
                       January 30, January 31, January 30, January 31,
                          2004        2003        2004        2003
                       ----------- ----------- ----------- -----------

Same-store customer
 transactions                 2.3%        1.8%        3.5%        5.2%
Average customer
 purchase (total stores)    $9.09       $8.97       $8.56       $8.50



              DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
                Reconciliation of Non-GAAP Disclosures
               (In thousands, except per share amounts)


                          13 Weeks Ended             Year Ended
                      ----------------------- ------------------------
                      January 30, January 31, January 30,  January 31,
                         2004        2003        2004         2003
                      ----------- ----------- -----------  -----------

Net Income and Earnings Per Share
---------------------------------
Net income in
 accordance with GAAP   $102,829    $108,086    $301,000     $264,946
                      ----------- ----------- -----------  -----------
Restatement-related
 items in SG&A               220         989         591        6,395
Penalty and litigation
 settlement proceeds      10,000           -      10,000      (29,541)
                      ----------- ----------- -----------  -----------
Total restatement-
 related items            10,220         989      10,591      (23,146)
Tax effect                   (86)        195        (232)       9,073
                      ----------- ----------- -----------  -----------
Total restatement-
 related items, net of
 tax                      10,134       1,184      10,359      (14,073)
                      ----------- ----------- -----------  -----------
Net income, excluding
 restatement-related
 items                  $112,963    $109,270    $311,359     $250,873
                      =========== =========== ===========  ===========

Weighted average
 diluted shares
 outstanding             339,866     334,659     337,636      335,050
                      =========== =========== ===========  ===========
Diluted earnings per
 share, excluding
 restatement-related
 items                     $0.33       $0.33       $0.92        $0.75
                      =========== =========== ===========  ===========

Selling, General and Administrative Expense
-------------------------------------------
SG&A in accordance
 with GAAP              $391,373    $350,419  $1,496,866   $1,296,542
   Less restatement-
    related items            220         989         591        6,395
                      ----------- ----------- -----------  -----------
SG&A, excluding
 restatement-related
 items                  $391,153    $349,430  $1,496,275   $1,290,147
                      ----------- ----------- -----------  -----------

SG&A, excluding
 restatement-related
 items, % to sales         19.89%      19.86%      21.77%       21.15%
                      =========== =========== ===========  ===========

Operating Profit Margin
-----------------------
Operating profit in
 accordance with GAAP   $175,123    $177,545    $511,263     $457,265
   Restatement-related
    items                 10,220         989      10,591      (23,146)
                      ----------- ----------- -----------  -----------
Operating profit,
 excluding
 restatement-related
 items                  $185,343    $178,534    $521,854     $434,119
                      =========== =========== ===========  ===========

Operating profit,
 excluding
 restatement-related
 items, % to sales          9.43%      10.15%       7.59%        7.12%
                      =========== =========== ===========  ===========

                                                   Guidance Range
                                              ------------------------
                                    Fiscal      Fiscal       Fiscal
                                     2003        2004         2004
                                  ----------- -----------  -----------
Annual Outlook
----------------------
Net income in
 accordance with GAAP               $301,000    $340,400     $355,400

Restatement-related items:
   Penalty                            10,000           -            -
   Restatement-related
    items in SG&A                        591       1,000        1,000
                                  ----------- -----------  -----------
                                      10,591       1,000        1,000
   Tax effect                           (232)       (400)        (400)
                                  ----------- -----------  -----------
Total restatement-
 related items, net of tax            10,359         600          600
                                  ----------- -----------  -----------
Net income, excluding
 restatement-related items          $311,359    $341,000     $356,000
                                  =========== ===========  ===========

% increase over 2003, excluding
 restatement-related items                            10%          14%
                                              ===========  ===========



              DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
                         Non-GAAP Disclosures
                    Return on Invested Capital (a)

                                                 For the Years Ended
                                               -----------------------
                                               January 30, January 31,
($ in thousands)                                  2004        2003
                                               ----------- -----------

Net income                                       $301,000    $264,946
Add:
   Interest expense, net                           31,503      42,639
   Rent expense                                   247,309     216,345
   Tax effect of interest and rent               (103,886)    (93,493)
                                               ----------- -----------
   Interest and rent, net of tax                  174,926     165,491
                                               ----------- -----------

Return, net of tax                               $475,926    $430,437
Restatement-related items net of tax               10,359     (14,073)
                                               ----------- -----------
Return excluding restatement-related items       $486,285    $416,364

Average Invested Capital:
   Average long-term obligations (b)             $309,234    $570,764
   Shareholders' equity (c)                     1,421,308   1,148,030
   Average rent x 8 (d)                         1,854,608   1,608,713
                                               ----------- -----------
   Invested capital                            $3,585,150  $3,327,507

Return on invested capital                           13.3%       12.9%
                                               =========== ===========
Return on invested capital, excluding
 restatement-related items                           13.6%       12.5%
                                               =========== ===========

(a) The Company believes that the most directly comparable ratio
    calculated solely using GAAP measures is the ratio of net  income
    to the sum of average long-term obligations, including current
    portion, and average shareholders' equity.  This ratio was 17.4%
    and 15.4% for fiscal 2003 and 2002, respectively.
(b) Average long-term obligations is equal to the average long-term
    obligations, including current portion, measured at the end of
    each of the last five fiscal quarters.
(c) Average shareholders' equity is equal to the average shareholders'
    equity measured at the end of each of the last five fiscal
    quarters.
(d) Average rent expense is computed using a rolling two-year period.
    Average rent expense is multiplied by a factor of eight to
    capitalize operating leases in the determination of pretax
    invested capital. This is a conventional methodology utilized by
    credit rating agencies and investment bankers.


                           Return on Assets

                                                 For the Years Ended
                                               -----------------------
                                               January 30, January 31,
($ in thousands)                                  2004        2003
                                               ----------- -----------

Net income                                       $301,000    $264,946
Restatement-related items, net of tax:             10,359     (14,073)
                                               ----------- -----------
Net income, excluding restatement-related items   311,359     250,873

Average assets (a)                              2,459,281   2,430,133
                                               ----------- -----------

Return on assets                                     12.2%       10.9%
                                               =========== ===========
Return on assets, excluding
 restatement-related items                           12.7%       10.3%
                                               =========== ===========

(a) Average assets is equal to the average total assets measured at
    the end of each of the last five fiscal quarters.

    CONTACT: Dollar General Corporation
             Investor Contact:
             Emma Jo Kauffman, 615-855-5525
             or
             Media Contact:
             Andrea Ewin Turner, 615-855-5209

    SOURCE: Dollar General Corporation


<< Back

You must be logged in to view this item.



Login

This area is reserved for members of the news media. If you qualify, please update your user profile and check the box marked "Check here to register as an accredited member of the news media". Please include any notes in the "Supporting information for media credentials" box. We will notify you of your status via e-mail in one business day.