Dollar General Begins Expansion of South Boston Distribution Center; Expansion to Create Approximately 100 New Jobs in 2004

November 10, 2003

GOODLETTSVILLE, Tenn., Nov. 10 /PRNewswire-FirstCall/ -- Dollar General Corporation (NYSE: DG) announced that it is beginning construction to expand its South Boston Distribution Center in Virginia. The expansion is expected to generate approximately 100 new jobs. Construction will begin this month at the distribution center, which is located at 3207 Philpott Road, and is scheduled to be complete by the third quarter of 2004.

Jeff Sims, vice president of distribution, made the announcement saying, "As our company continues to open new stores, our distribution network must be prepared to support that growth. Our South Boston Distribution Center and its employees have played a tremendous role in our ability to efficiently serve our stores. This expansion, along with the conversion from a single to a dual sortation system and the additional employees, will give us the ability to serve even more stores in the future. We are grateful to the community for the on-going support we have received and we are counting on that support to continue."

"We have a great team here in South Boston, and we are proud to be a growing part of the community," said Mike Dunn, manager of the South Boston Distribution Center. "Our goal is to complete this project with no disruption of service to our stores. Only with dedicated employees can we meet this challenge, and thanks to the team I have here, I am confident we will."

About the South Boston Distribution Center

Dollar General announced plans to build a 750,000 square-foot distribution center in Halifax County in March 1996, and in August 1997, the company and the community celebrated the grand opening. The facility was expanded to 1,210,000 square feet in 1999. The South Boston Distribution Center currently employs approximately 600 people.

About Dollar General

Dollar General is a Fortune 500^® discount retailer with 6,653 neighborhood stores in 27 states as of October 31, 2003. Dollar General stores offer convenience and value to customers, by offering consumable basics, items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as an appealing selection of basic apparel, housewares and seasonal items at everyday low prices. The typical Dollar General store has 6,750 square feet of selling space and is located within five miles of its target customers.

This press release contains forward-looking information, including information regarding the Company's future sales outlook. The words "believe," "expected," "project," "plan," "estimate," "objective," "forecast," "goal," "intend," "will likely result," or "will continue" and similar expressions generally identify forward-looking statements. 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. A number of factors may result in actual results differing from such forward-looking information, including, but not limited to: the Company's ability to maintain adequate liquidity through its cash resources and credit facilities; the Company's ability to comply with the terms of the Company's credit facilities (or obtain waivers for non- compliance); transportation and distribution delays or interruption; 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; a deterioration in general economic conditions caused by acts of war or terrorism; temporary changes in demand due to weather patterns; seasonality of the Company's business; delays associated with building, opening and operating new stores; the impact of the SEC inquiry related to the restatement of certain of the Company's financial statements; and other risk factors discussed in our SEC filings, including in our most recent 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. 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.

SOURCE Dollar General Corporation
CONTACT: investors, Emma Jo Kauffman, +1-615-855-5525, or media,
Andrea Ewin Turner, +1-615-855-5209, both of Dollar General Corporation