| Kansas                                                         | 48-0201080                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |
| 401      Cottage StreetAbilene,      Kansas                    |   67410-2832                    |
| (Address      of principal executive offices)                       | (Zip      Code)                           |

----

| TABLE OF CONTENTS |
|-------------------|
|              |   |   |   |
| PART      I       | FINANCIAL      INFORMATION |   |
|              | Item      1. | Financial      Statements | 3 |
|              | Item      2. | Management's Discussion and      Analysis of Financial Condition and Results of      Operations | 9 |
|              | Item      3. | Quantitative and      Qualitative Disclosure About Market Risk | 15 |
|              | Item      4. | Controls and      Procedures | 15 |
|              |   |   |   |
| PART      II      | OTHER      INFORMATION |   |
|              | Item      1. | Legal      Proceedings | 16 |
|              | Item      1A. | Risk      Factors | 16 |
|              | Item      2. | Unregistered Sales of      Equity Securities and Use of Proceeds | 16 |
|              | Item      3. | Defaults Upon Senior      Securities | 16 |
|              | Item      4. | Submission of Matters to a      Vote of Security Holders | 16 |
|              | Item      5. | Other      Information | 16 |
|              | Item      6. | Exhibits | 16 |
|              |   |   |   |
| Signature         |   |   | 18 |

----

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

| Duckwall-ALCO      Stores, Inc. and Subsidiaries                                                            |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| Consolidated      Balance Sheets                                                                            |   |
| (dollars      in thousands, except share amounts)                                                           |   |
| Assets                                                                                                      |   |
|                                                                                                        |   | November      1, 2009 |   |   | February      1, 2009 |   |
|                                                                                                        |   | (Unaudited) |   |   |   |   |
| Current      assets:                                                                                        |   |   |   |   |   |   |
|    Cash      and cash equivalents                                                            |   | $ | 5,703 |   |   |   | 4,744 |   |
|    Receivables                                                                               |   |   | 5,998 |   |   |   | 5,142 |   |
|    Prepaid      income taxes                                                                 |   |   | 1,527 |   |   |   | 5,753 |   |
|    Inventories                                                                               |   |   | 165,131 |   |   |   | 146,620 |   |
|    Prepaid      expenses                                                                     |   |   | 3,688 |   |   |   | 4,143 |   |
|    Deferred      income taxes                                                                |   |   | 2,835 |   |   |   | 5,348 |   |
|   Assets      held for sale                                                                       |   |   | 1,531 |   |   |   | 1,505 |   |
|           Total      current assets                       |   |   | 186,413 |   |   |   | 173,255 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Property      and equipment, at cost:                                                                       |   |   |   |   |   |   |   |   |
|    Land      and land improvements                                                           |   |   | 1,442 |   |   |   | 1,420 |   |
|    Buildings      and building improvements                                                  |   |   | 11,518 |   |   |   | 11,369 |   |
|    Furniture,      fixtures and equipment                                                    |   |   | 70,803 |   |   |   | 69,019 |   |
|    Transportation      equipment                                                             |   |   | 1,375 |   |   |   | 1,322 |   |
|    Leasehold      improvements                                                               |   |   | 15,166 |   |   |   | 13,974 |   |
|    Construction      work in progress                                                        |   |   | 2,014 |   |   |   | 745 |   |
|           Total      property and equipment               |   |   | 102,318 |   |   |   | 97,849 |   |
|    Less      accumulated depreciation                                                        |   |   | 71,228 |   |   |   | 65,591 |   |
|           Net      property and equipment                 |   |   | 31,090 |   |   |   | 32,258 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Property      under capital leases                                                                          |   |   | 11,015 |   |   |   | 11,015 |   |
|    Less      accumulated amortization                                                        |   |   | 9,084 |   |   |   | 7,958 |   |
|           Net      property under capital leases          |   |   | 1,931 |   |   |   | 3,057 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Other      non-current assets                                                                               |   |   | 143 |   |   |   | 205 |   |
| Deferred      income taxes                                                                                  |   |   | 2,055 |   |   |   | - |   |
|           Total      assets                               |   | $ | 221,632 |   |   |   | 208,775 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                        |   |
| Liabilities      and Stockholders' Equity                                                                   |   |
| Current      liabilities:                                                                                   |   |   |   |   |   |   |   |   |
|    Current      maturities of long-term debt                                                 |   | $ | 1,428 |   |   |   | 1,362 |   |
|    Current      maturities of capital lease obligations                                      |   |   | 1,929 |   |   |   | 1,853 |   |
|    Accounts      payable                                                                     |   |   | 37,290 |   |   |   | 30,233 |   |
|    Accrued      salaries and commissions                                                     |   |   | 5,107 |   |   |   | 5,375 |   |
|    Accrued      taxes other than income                                                      |   |   | 5,410 |   |   |   | 4,941 |   |
|    Self-insurance      claim reserves                                                        |   |   | 5,087 |   |   |   | 5,309 |   |
|    Other      current liabilities                                                            |   |   | 4,280 |   |   |   | 4,676 |   |
|           Total      current liabilities                  |   |   | 60,531 |   |   |   | 53,749 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Long      term debt, less current maturities                                                                |   |   | 1,786 |   |   |   | 2,865 |   |
| Notes      payable under revolving loan agreement                                                           |   |   | 47,510 |   |   |   | 40,714 |   |
| Capital      lease obligations - less current maturities                                                    |   |   | 1,527 |   |   |   | 3,047 |   |
| Deferred      gain on leases                                                                                |   |   | 4,309 |   |   |   | 4,598 |   |
| Deferred      income taxes, net                                                                             |   |   | 160 |   |   |   | 138 |   |
| Other      noncurrent liabilities                                                                           |   |   | 1,682 |   |   |   | 1,624 |   |
|           Total      liabilities                          |   |   | 117,505 |   |   |   | 106,735 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Stockholders'      equity:                                                                                  |   |   |   |   |   |   |   |   |
|   Common      stock, $.0001 par value, authorized 20,000,000 shares; issued and      outstanding  |   |   |   |   |   |   |   |   |
|     3,797,947      shares and 3,797,947 shares, respectively                            |   |   | 1 |   |   |   | 1 |   |
|    Additional      paid-in capital                                                           |   |   | 39,158 |   |   |   | 38,615 |   |
|    Retained      earnings                                                                    |   |   | 64,968 |   |   |   | 63,424 |   |
|           Total      stockholders' equity                 |   |   | 104,127 |   |   |   | 102,040 |   |
|           Total      liabilities and stockholders' equity |   | $ | 221,632 |   |   |   | 208,775 |   |
| See      accompanying notes to unaudited consolidated financial      statements.                            |   |

----

| Duckwall-ALCO      Stores, Inc. and Subsidiaries                                                |   |
|-------------------------------------------------------------------------------------------------|--------|
| Consolidated      Statements of Operations                                                      |   |
| (dollars      in thousands, except share amounts)                                               |   |
| (Unaudited)                                                                                     |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   | For      the Thirteen Week |   |   | For      the Thirty-Nine Week |   |
|                                                                                            |   | Periods      Ended |   |   | Periods      Ended |   |
|                                                                                            |   | November      1, 2009 |   |   | November      2, 2008 |   |   | November      1, 2009 |   |   | November      2, 2008 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                                                                  |   | $ | 111,495 |   |   |   | 114,880 |   |   |   | 352,191 |   |   |   | 349,692 |   |
| Cost      of sales                                                                              |   |   | 75,835 |   |   |   | 77,756 |   |   |   | 235,583 |   |   |   | 237,527 |   |
| Gross      margin                                                                               |   |   | 35,660 |   |   |   | 37,124 |   |   |   | 116,608 |   |   |   | 112,165 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative                                                        |   |   | 34,862 |   |   |   | 38,097 |   |   |   | 105,187 |   |   |   | 109,918 |   |
| Depreciation      and amortization                                                              |   |   | 2,327 |   |   |   | 2,118 |   |   |   | 6,973 |   |   |   | 5,794 |   |
|            Total      operating expenses |   |   | 37,189 |   |   |   | 40,215 |   |   |   | 112,160 |   |   |   | 115,712 |   |
| Operating      income (loss) from continuing operations                                         |   |   | (1,529 | ) |   |   | (3,091 | ) |   |   | 4,448 |   |   |   | (3,547 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                                                      |   |   | 532 |   |   |   | 63 |   |   |   | 1,589 |   |   |   | 1,218 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) from continuing operations before income taxes                             |   |   | (2,061 | ) |   |   | (3,154 | ) |   |   | 2,859 |   |   |   | (4,765 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax expense (benefit)                                                               |   |   | (626 | ) |   |   | (1,644 | ) |   |   | 1,310 |   |   |   | (2,329 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) from continuing operations                                                 |   |   | (1,435 | ) |   |   | (1,510 | ) |   |   | 1,549 |   |   |   | (2,436 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations, net of income tax benefit                               |   |   | (2 | ) |   |   | (155 | ) |   |   | (5 | ) |   |   | (1,825 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings (loss)                                                                        |   | $ | (1,437 | ) |   |   | (1,665 | ) |   |   | 1,544 |   |   |   | (4,261 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per share                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Continuing      operations                |   | $ | (0.38 | ) |   |   | (0.40 | ) |   |   | 0.41 |   |   |   | (0.64 | ) |
|          Discontinued      operations              |   |   | - |   |   |   | (0.04 | ) |   |   | - |   |   |   | (0.48 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Net      earnings (loss)                  |   | $  | (0.38 | ) |   |   | (0.44 | ) |   |   | 0.41 |   |   |   | (1.12 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per share                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Diluted                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Continuing      operations                |   | $  | (0.38 | ) |   |   | (0.40 | ) |   |   | 0.40 |   |   |   | (0.64 | ) |
|          Discontinued      operations              |   |   | - |   |   |   | (0.04 | ) |   |   | - |   |   |   | (0.48 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Net      earnings (loss)                  |   | $  | (0.38 | ) |   |   | (0.44 | ) |   |   | 0.40 |   |   |   | (1.12 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to unaudited consolidated financial      statements.                |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Duckwall-ALCO      Stores, Inc. and Subsidiaries                                                               |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| Consolidated      Statements of Cash Flows                                                                     |   |
| (dollars      in thousands)                                                                                    |   |
| (Unaudited)                                                                                                    |   |
|                                                                                                           |   | For      the Thirty-Nine Week |   |
|                                                                                                           |   | Periods      Ended |   |
|                                                                                                           |   | November      1, 2009 |   |   | November      2, 2008 |   |
|                                                                                                           |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                                     |   |   |   |   |   |   |
| Net      earnings (loss)                                                                                       |   | $ | 1,544 |   |   |   | (4,261 | ) |
| Adjustments      to reconcile net earnings (loss) to net cash provided by (used in)      operating activities: |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                             |   |   | 6,929 |   |   |   | 5,836 |   |
| Gain      on sale of assets                                                                                    |   |   | (70 | ) |   |   | 14 |   |
| Share-based      compensation                                                                                  |   |   | 601 |   |   |   | 34 |   |
| Deferred      income tax expense, net                                                                     |   |   | 422 |   |   |   | 3,595 |   |
| Changes      in:                                                                                               |   |   |   |   |   |   |   |   |
|    Receivables                                                                                  |   |   | (856 | ) |   |   | 1,385 |   |
|    Prepaid      income taxes                                                                    |   |   | 4,226 |   |   |   | (3,963 | ) |
|    Inventories                                                                                  |   |   | (18,511 | ) |   |   | (37,859 | ) |
|    Prepaid      expenses                                                                        |   |   | 455 |   |   |   | (770 | ) |
|    Accounts      payable                                                                        |   |   | 7,057 |   |   |   | 18,379 |   |
|    Accrued      salaries and commissions                                                        |   |   | (268 | ) |   |   | 1,878 |   |
|    Accrued      taxes other than income                                                         |   |   | 469 |   |   |   | 543 |   |
|    Self-insurance      claim reserves                                                           |   |   | (222 | ) |   |   | (253 | ) |
|    Other      assets and liabilities                                                            |   |   | (565 | ) |   |   | (2,519 | ) |
|       Net      cash provided by (used in) operating activities                   |   |   | 1,211 |   |   |   | (17,961 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                     |   |   |   |   |   |   |   |   |
| Proceeds      from the sale of assets                                                                          |   |   | 73 |   |   |   | 169 |   |
| Acquisition      of property and equipment                                                                     |   |   | (4,664 | ) |   |   | (7,578 | ) |
|       Net      cash used in investing activities                                 |   |   | (4,591 | ) |   |   | (7,409 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                     |   |   |   |   |   |   |   |   |
| Net      borrowings under revolving loan agreement                                                             |   |   | 6,796 |   |   |   | 27,673 |   |
| Proceeds      from stock sale                                                                                  |   |   | - |   |   |   | 90 |   |
| Repurchase      of common stock                                                                                |   |   | - |   |   |   | (191 | ) |
| Principal      payments under term loan                                                                        |   |   | (1,013 | ) |   |   | (951 | ) |
| Principal      payments under capital lease obligations                                                        |   |   | (1,444 | ) |   |   | (1,432 | ) |
|       Net      cash provided by financing activities                             |   |   | 4,339 |   |   |   | 25,189 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
|       Net      increase (decrease) in cash and cash equivalents                  |   |   | 959 |   |   |   | (181 | ) |
| Cash      and cash equivalents at beginning of period                                                          |   |   | 4,744 |   |   |   | 5,501 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                                                |   | $ | 5,703 |   |   |   | 5,320 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Supplemental      disclosures of cash flow information:                                                        |   |   |   |   |   |   |   |   |
| Cash      paid (received) during the period for:                                                               |   |   |   |   |   |   |   |   |
| Interest                                                                                                       |   | $ | 1,594 |   |   |   | 1,834 |   |
| Income      taxes                                                                                              |   |   | (3,097 | )  |   |   | (828 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| See      accompanying notes to unaudited consolidated financial      statements.                               |   |   |   |   |   |

----

----

|                                        |   |                         |    |   |                                          |   |   |                                             |   |
|---------------------------------------------|--------|------------------------------|---------|--------|------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                        |   |  Fiscal      2009 Ended |    |   | For      the Thirteen Week Periods Ended |   |   | For      the Thirty-Nine Week Periods Ended |   |
|                                        |   | February      1, 2009        |    |   | November      1, 2009                    |   |   | November      2, 2008                       |   |   | November      1, 2009 |   |   | November      2, 2008 |   |
| Stock      options granted                  |   |                         | 414,500 |   |                                     |   | 10,000 |                                        |   |   | 10,000 |   |   |   | 45,000 |   |   |   | 384,500 |   |
| Weighted      average exercise price        |   | $                            | 12.26   |   |                                     |   | 17.89  |                                        |   |   | 14.08 |   |   |   | 13.95 |   |   |   | 12.43 |   |
| Weighted      average grant date fair value |   | $                            | 4.16    |   |                                     |   | 7.86   |                                        |   |   | 5.19 |   |   |   | 5.95 |   |   |   | 4.18 |   |

|                                          |   |                   |   |   |                                     |   |   |                                        |   |
|-----------------------------------------------|--------|------------------------|--------|--------|------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                          |   | Fiscal      2009 Ended |   |   | For      the Thirteen Week Periods Ended |   |   | For      the Thirty-Nine Week Periods Ended |   |
|                                          |   | February      1, 2009  |   |   | November      1, 2009                    |   |   | November      2, 2008                       |   |   | November      1, 2009 |   |   | November      2, 2008 |   |
| Expected      price volatility                |   |                   | 36.6   | %      |                                     |   | 50.2   | %                                           |   |   | 38.0 | % |   |   | 51.3 | % |   |   | 36.1 | % |
| Risk-free      interest rate                  |   |                   | 2.5    | %      |                                     |   | 1.7    | %                                           |   |   | 2.9 | % |   |   | 1.4 | % |   |   | 2.6 | % |
| Weighted      average expected lives in years |   |                   | 4.5    |   |                                     |   | 4.8    |                                        |   |   | 4.8 |   |   |   | 4.3 |   |   |   | 4.5 |   |
| Dividend      yield                           |   |                   | 0.00   | %      |                                     |   | 0.00   | %                                           |   |   | 0.00 | % |   |   | 0.00 | % |   |   | 0.00 | % |

----

| The      average number of shares used in computing earnings per share was as      follows: |   |   |      |   |    |   |
|---------------------------------------------------------------------------------------------|--------|--------|-----------|--------|---------|--------|
|                                                                                        |   |   |      |   |    |   |
| Thirteen      Weeks Ended                                                                   |   | Basic  |      |   | Diluted |   |
|                                                                                        |   |   |      |   |    |   |
| November      1, 2009                                                                       |   |   | 3,797,947 |   |    |   | 3,797,947 |   |
| November      2, 2008                                                                       |   |   | 3,811,943 |   |    |   | 3,811,943 |   |
|                                                                                        |   |   |      |   |    |   |   |   |
|                                                                                        |   |   |      |   |    |   |   |   |
| Thirty-Nine      Weeks Ended                                                                |   | Basic  |      |   | Diluted |   |
|                                                                                        |   |   |      |   |    |   |   |   |
| November      1, 2009                                                                       |   |   | 3,797,947 |   |    |   | 3,876,907 |   |
| November      2, 2008                                                                       |   |   | 3,812,249 |   |    |   | 3,812,249 |   |

| Beginning      balances as of August 2, 2009 |   | $      | 105 |   |
|----------------------------------------------|--------|--------|-----|--------|
| Net      lease payments made                 |   |   | (47 | )      |
| Ending      balance as of November 1, 2009   |   | $      | 58  |   |

----

MANAGEMENT'SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONS

----

| · | Net      sales decreased 2.9% to $111.5 million.  Same-store sales      decreased 1.7% compared to the prior year thirdquarter.                                                                                                                                                                                                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Gross      margin percentage decreased to 32.0% of sales, compared to 32.3% in      the prior year third quarter.                                                                                                                                                                                                                                                                                                                               |
| · | Net      loss per share was $0.38 in the third quarter of fiscal 2010 compared to      net loss of $0.44 per share in the prior year third      quarter.                                                                                                                                                                                                                                                                                        |
| · | The      Company’s earnings from continuing operations before interest, taxes,      depreciation and amortization, share-based compensation, preopening      store costs, inventory review initiative and executive, staff      severance and store transformation project costs (“Adjusted      EBITDA”) for the third quarter 2010 was $955 compared to the prior      year third quarter of$475.  |

----

----

|                                                                                                                                                                                                                                    |   | For      the Thirteen Week Periods Ended |   |    | For      the Thirty-Nine Week Periods Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|---------|---------------------------------------------|--------|
| SG&A      Expenses Breakout                                                                                                                                                                                                         |   | November      1, 2009                    |   |    | November      2, 2008                       |   |   | November      1, 2009 |   |   | November      2, 2008 |   |
| Store      support center (1)                                                                                                                                                                                                           |   | $                                        | 5,397  |    |                                        |   | 6,551 |   |   |   | 17,515 |   |   |   | 19,318 |   |
| Distribution      center                                                                                                                                                                                                                |   |                                     | 2,258  |    |                                        |   | 2,608 |   |   |   | 6,490 |   |   |   | 7,186 |   |
| 401K      expense                                                                                                                                                                                                                       |   |                                     | 101    |    |                                        |   | 115 |   |   |   | 297 |   |   |   | 359 |   |
| Same-store      SG&A                                                                                                                                                                                                                |   |                                     | 26,575 |    |                                        |   | 27,896 |   |   |   | 76,690 |   |   |   | 78,450 |   |
| Non      same-store SG&A (2)                                                                                                                                                                                                        |   |                                     | 376    |    |                                        |   | 758 |   |   |   | 3,594 |   |   |   | 4,571 |   |
| Share-based      compensation                                                                                                                                                                                                           |   |                                     | 155    |    |                                        |   | 169 |   |   |   | 601 |   |   |   | 34 |   |
| SG&A      as reported                                                                                                                                                                                                               |   |                                     | 34,862 |    |                                        |   | 38,097 |   |   |   | 105,187 |   |   |   | 109,918 |   |
| Less:                                                                                                                                                                                                                                   |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Share-based      compensation                                                                                                                                                                                                           |   |                                     | (155   | )       |                                        |   | (169 | ) |   |   | (601 | ) |   |   | (34 | ) |
| Preopening      store costs (2)                                                                                                                                                                                                         |   |                                     | (2     | )       |                                        |   | (342 | ) |   |   | (2 | )  |   |   | (1,837 | ) |
| Executive      and staff severance (1)                                                                                                                                                                                                  |   |                                     | -      |    |                                        |   | - |   |   |   | - |   |   |   | (1,942 | ) |
| Store      transformation project costs (1)                                                                                                                                                                                             |   |                                     | -      |    |                                        |   | (937 | ) |   |   | (2,096 | ) |   |   | (937 | ) |
| Adjusted      SG&A                                                                                                                                                                                                                  |   | $                                        | 34,705 |    |                                        |   | 36,649 |   |   |   | 102,488 |   |   |   | 105,168 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      SG&A as % of sales                                                                                                                                                                                                    |   |                                     | 31.1   | %       |                                        |   | 31.9 | % |   |   | 29.1 | % |   |   | 30.1 | % |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Sales      per average selling square foot (3)                                                                                                                                                                                          |   | $                                        | 24.60  |    |                                        |   | 25.83 |   |   | $ | 77.71 |   |   |   | 79.98 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      Gross Margin dollars per average selling square feet(3)(4)                                                                                                                                                                |   | $                                        | 7.87   |    |                                        |   | 8.35 |   |   | $ | 25.73 |   |   |   | 25.96 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      SG&A per average selling square foot (3)                                                                                                                                                                              |   | $                                        | 7.66   |    |                                        |   | 8.24 |   |   | $ | 22.61 |   |   |   | 24.05 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      EBITDA per average selling square foot (3)(5)                                                                                                                                                                             |   | $                                        | 0.21   |    |                                        |   | 0.11 |   |   | $ | 3.12 |   |   |   | 1.91 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Average      inventory per average selling square feet (3)(6)(7)                                                                                                                                                                        |   | $                                        | 28.80  |    |                                        |   | 28.95 |   |   | $ | 28.64 |   |   |   | 28.48 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Average      selling square feet (3)                                                                                                                                                                                                    |   |                                     | 4,532  |    |                                        |   | 4,447 |   |   |   | 4,532 |   |   |   | 4,372 |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Total      stores operating beginning of period                                                                                                                                                                                         |   |                                     | 257    |    |                                        |   | 257 |   |   |   | 258 |   |   |   | 262 |   |
| Total      stores operating end of period                                                                                                                                                                                               |   |                                     | 257    |    |                                        |   | 259 |   |   |   | 257 |   |   |   | 259 |   |
| Total      stores less than twelve months old                                                                                                                                                                                           |   |                                     |   |    |                                        |   |   |   |   |   | 0 |   |   |   |   |   |
| Total      non same-stores                                                                                                                                                                                                              |   |                                     |   |    |                                        |   |   |   |   |   | 1 |   |   |   |   |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      Data:                                                                                                                                                                                                                 |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Same-store      adjusted gross margin dollar change                                                                                                                                                                                     |   |                                     | 0.0    |  % |                                        |   | (1.8 | )% |   |   | 1.3 |  % |   |   | (1.4 | )% |
| Same-store      SG&A dollar change                                                                                                                                                                                                  |   |                                     | (4.7   | )%      |                                        |   | (0.9 | )% |   |   | (2.2 | )% |   |   | 2.5 |  % |
| Same-store      total customer count change                                                                                                                                                                                             |   |                                     | (1.2   | )%      |                                        |   | (5.4 | )% |   |   | (0.7 | )% |   |   | (4.0 | )% |
| Same-store      average sale per ticket change                                                                                                                                                                                          |   |                                     | (2.0   | )%      |                                        |   | 4.0 |  % |   |   | (0.6 | )% |   |   | 4.4 |  % |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                    |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Store support center includes executive and staff severance for first      quarter fiscal 2009 and store transformation project costs for first and      second quarters fiscal 2010 and the third quarter of fiscal      2009 |   |
| (2)      Non same-stores are those stores opened in Fiscal 2009 which have not      reached their fourteenth period of operation                                                                                                        |   |
| (3)      Average selling square feet is calculated as beginning square feet plus      ending square feet divided by 2                                                                                                                   |   |
| (4)      Adjusted Gross Margin includes $1.3 million inventory review initiative      charge added back in first quarter fiscal 2009                                                                                                    |   |
| (5)      Adjusted EBITDA per selling square foot is calculated as Adjusted EBITDA      divided by selling square feet                                                                                                                   |   |
| (6)      Average store level merchandise inventory for fiscal 2010 and 2009 is      calculated as beginning inventory plus ending inventory divided by      2                                                                      |   |
| (7)      Excludes inventory for unopened stores                                                                                                                                                                                         |   |                                     |   |    |                                        |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |   |   | For      the Twenty-Six |   |   | Trailing      Twelve |   |   | For      the Thirteen   |   |   | Trailing      Twelve  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|-------------------------|--------|--------|----------------------|--------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |   |   | Week      Periods Ended |   |   | Periods      Ended   |   |   | Week      Periods Ended |   |   | Periods      Ended    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Fiscal      2009 |   |   | August      2, 2009     |   |   | August      3, 2008  |   |   | August      2, 2009     |   |   | November      1, 2009 |   |   | November      2, 2008 |   |   | November      1, 2009 |   |
| Net      earnings (loss) from continuing operations (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                | (2,996 | )      |                    |   | 2,988  |                 |   |   | (923                    | )      |   |                  | 915    |   |   |   | (1,435 | ) |   |   | (1,510 | ) |   |   | 990 |   |
| Plus:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |   |   |                    |   |   |                 |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 1,867  |   |                    |   | 1,058  |                 |   |   | 1,156                   |   |   |                  | 1,769  |   |   |   | 532 |   |   |   | 63 |   |   |   | 2,238 |   |
| Taxes      (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | (2,090 | )      |                    |   | 1,932  |                 |   |   | (690                    | )      |   |                  | 532    |   |   |   | (626 | ) |   |   | (1,644 | ) |   |   | 1,550 |   |
| Depreciation      and amortization (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | 9,302  |   |                    |   | 4,645  |                 |   |   | 3,677                   |   |   |                  | 10,270 |   |   |   | 2,327 |   |   |   | 2,118 |   |   |   | 10,479 |   |
| Share-based      compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 186    |   |                    |   | 446    |                 |   |   | (135                    | )      |   |                  | 767    |   |   |   | 155 |   |   |   | 169 |   |   |   | 753 |   |
| Preopening      store costs (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 1,846  |   |                    |   | -      |                 |   |   | 1,495                   |   |   |                  | 351    |   |   |   | 2 |   |   |   | 342 |   |   |   | 11 |   |
| Inventory      review initiative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 1,345  |   |                    |   | -      |                 |   |   | 1,345                   |   |   |                  | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Executive      and staff severance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 1,942  |   |                    |   | -      |                 |   |   | 1,942                   |   |   |                  | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Store      transformation project costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 2,220  |   |                    |   | 2,096  |                 |   |   | -                       |   |   |                  | 4,316  |   |   |   | - |   |   |   | 937 |   |   |   | 3,379 |   |
| =Adjusted      EBITDA (1)(3)(4)(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 13,622 |   |                    |   | 13,165 |                 |   |   | 7,867                   |   |   |                  | 18,920 |   |   |   | 955 |   |   |   | 475 |   |   |   | 19,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |   |   |                    |   |   |                 |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 4,744  |   |                    |   | 5,446  |                 |   |   | 4,653                   |   |   |                  | 5,446  |   |   |   | 5,703 |   |   |   | 5,320 |   |   |   | 5,703 |   |
| Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 49,841 |   |                    |   | 48,802 |                 |   |   | 36,964                  |   |   |                  | 48,802 |   |   |   | 54,180 |   |   |   | 58,303 |   |   |   | 54,180 |   |
| Debt,      net of cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                | 45,097 |   |                    |   | 43,356 |                 |   |   | 32,311                  |   |   |                  | 43,356 |   |   |   | 48,477 |   |   |   | 52,983 |   |   |   | 48,477 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |   |   |                    |   |   |                 |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      These amounts will not agree with the fiscal 2009 first quarter 10-Q      filing due to the one store the Company closed in the third quarter of      fiscal 2009. These amounts will not agree with the fiscal year end      2009 or fiscal 2010 first quarter 10-Q filing due to the one store the      Company closed in the second quarter of fiscal 2010. These stores are      now shown in discontinued operations.                                                                                                                                                                                                                                                                          |   |
| (2) These      costs are not consistent quarter to quarter as the Company does not open      the same number of stores in each quarter of each fiscal year. These      costs are directly associated with the number of stores that have been or      will be opened and are incurred prior to the grand opening of each      store.                                                                                                                                                                                                                                                                                                                                                                    |   |
| (3) For      the trailing twelve periods ended November 1, 2009 the average open weeks      for the Company's one non same-store is 59 weeks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| (4) During      fiscal year 2009, the Company made a change in its Executive Management      team and Board of Directors resulting in several initiatives to reduce      certain SG&A expenses. For the trailing twelve periods ended      November 1, 2009, these initiatives resulted in approximately $5.7 million      reduced SG&A expenses when compared to the same prior year trailing      twelve periods.  The initiatives include, but are not limited to,      executive and staff reduction, reduced ALCO same-store hourly wages,      advertising expenses, net of coop offset and floor care services along      with reduced total Company insurance and travel expenses. |   |
| (5) In      addition to continued efforts regarding the fiscal 2009 cost reduction      initiatives, the Company has also implemented new initiatives for fiscal      year 2010. The fiscal 2010 initiatives include, but are not limited to,      reduced point-of-sale hardware lease expense, energy expense and accident      reduction programs. These initiatives achieved approximately $2.0      million in reduced SG&A savings for the thirty-nine weeks of fiscal      2010 when compared to the prior year same period.                                                                                                                                                                      |   |

----

|                                                                     |   | For      the Thirteen Week Periods Ended |   |   | For      the Thirty-Nine Week Periods Ended |   |
|--------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                     |   | November      1, 2009                    |   |   | November      1, 2008                       |   |   | November      1, 2009 |   |   | November      1, 2008 |   |
| Merchandise      Category:                                               |   |                                     |   |   |                                        |   |   |   |   |   |   |   |
| Consumables      and commodities                                         |   |                                     | 32     | %      |                                        |   | 32 | % |   |   | 30 | % |   |   | 32 | % |
| Electronics,      entertainment, sporting goods, toys and outdoor living |   |                                     | 21     | %      |                                        |   | 20 | % |   |   | 25 | % |   |   | 25 | % |
| Apparel      and accessories                                             |   |                                     | 18     | %      |                                        |   | 22 | % |   |   | 17 | % |   |   | 19 | % |
| Home      furnishings and décor                                     |   |                                     | 18     | %      |                                        |   | 14 | % |   |   | 17 | % |   |   | 13 | % |
| Other                                                                    |   |                                     | 11     | %      |                                        |   | 12 | % |   |   | 11 | % |   |   | 11 | % |
|                                                                     |   |                                     |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                    |   |                                     | 100    | %      |                                        |   | 100 | % |   |   | 100 | % |   |   | 100 | % |

----

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKETRISK

CONTROLS AND PROCEDURES

----

OTHER INFORMATION

LEGAL PROCEEDINGS

RISK FACTORS

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS

|                                             |   |                 |   |   |                    |   |   | Total      Number          |   |   | Maximum      Number        |   |
|--------------------------------------------------|--------|----------------------|--------|--------|-------------------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|
|                                             |   |                 |   |   |                    |   |   | of      Shares             |   |   | of      Shares             |   |
|                                             |   | Total      Number Of |   |   |                    |   |   | Purchased      as Part     |   |   | that      May Yet          |   |
|                                             |   | Shares               |   |   | Average      Price Paid |   |   | of      Publicly Announced |   |   | Be      Purchased Under    |   |
| Period                                           |   | Purchased            |   |   | per      Share          |   |   | Plans      or Programs     |   |   | the      Plans or Programs |   |
| As      of August 2, 2009                        |   |                 | 25,534 |   |                    | $      | 15.16  |                       |   |   | 25,534                     |   |   |   | 174,466 |   |
|                                             |   |                 |   |   |                    |   |   |                       |   |   |                       |   |   |   |   |   |
| Third      Quarter:                              |   |                 |   |   |                    |   |   |                       |   |   |                       |   |   |   |   |   |
|     08/03/09      - 08/30/09 |   |                 | -      |   |                    |   | -      |                       |   |   | -                          |   |   |   | 174,466 |   |
|     08/31/09      - 10/04/09 |   |                 | -      |   |                    |   | -      |                       |   |   | -                          |   |   |   | 174,466 |   |
|     10/05/09      - 11/01/09 |   |                 | -      |   |                    |   | -      |                       |   |   | -                          |   |   |   | 174,466 |   |
|                                             |   |                 | -      |   |                    |   |   |                       |   |   | -                          |   |   |   | 174,466 |   |
|                                             |   |                 |   |   |                    |   |   |                       |   |   |                       |   |   |   |   |   |
| As      of November 1, 2009                      |   |                 | 25,534 |   |                    | $      | 15.16  |                       |   |   | 25,534                     |   |   |   | 174,466 |   |

DEFAULTS UPON SENIOR SECURITIES

SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

OTHER INFORMATION

EXHIBITS

----

| 3.1    | Articles      of Incorporation of Duckwall-ALCO Stores, Inc., amended as of June 13,      1994 and restated solely for filing with the Securities and Exchange      Commission (filed as Exhibit 3.1 to Company's Quarterly Report on Form      10-Q for the fiscal quarter ended August 1, 2004 and incorporated herein      by reference). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                         |
| 3.2    | Bylaws      of Duckwall-ALCO Stores, Inc. (filed as Exhibit 3.2 to Company's Quarterly      Report on Form 10-Q for the fiscal quarter ended August 1, 2004 and      incorporated herein by reference).                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                         |
| 4.1    | Specimen      of Duckwall-ALCO Stores, Inc. Common Stock Certificate.  (filed      as Exhibit 4.1 to Company’s Quarterly Report on Form 10-Q for the fiscal      quarter ended August 3, 2008 and incorporated herein by      reference).                                                                                    |

| 4.2 | Reference      is made to the Amended and Restated Articles of Incorporation described      under 3.1 above and Bylaws described under 3.2  above. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1   | Employment      Agreement dated August 25, 2008 between the Company and Edmond C.      Beaith is incorporated by reference to Exhibit 10.5 to the Current Report      on Form 8-K of the Company dated August 25, 2008.                                                                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.2   | Separation      Agreement and Release, dated as of August 1, 2008, between the Company and      Anthony C. Corradi, including consulting agreement is incorporated by      reference to Exhibit 10.6 to the Current Report on Form 8-K of the Company      dated August 1, 2008.                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.3   | Employment      Agreement dated December 11, 2009 between the Company and Jim M.      Spencer is incorporated by reference to Exhibit 10.7 to the Current Report      on Form 8-K of the Company dated December 17, 2009.                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.4   | Separation      Agreement and Release, dated as of February 4, 2009, between the Company      and Phillip D. Hixon is incorporated by reference to Exhibit 10.8 to the      Current Report on Form 8-K of the Company dated February 4,      2009.                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.5   | Addendum      to Employment Agreement effective as of May 31, 2009 between the Company      and Mr. Zigerelli is incorporated by reference to Exhibit 10.9 to the      Current Report on Form 8-K of the Company dated June 3,    2009.                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.6   | Addendum      to Employment Agreement effective as of May 31, 2009 between the Company      and Ms. Gilmartin is incorporated by reference to Exhibit 10.10 to the      Current Report on Form 8-K of the Company dated June 3,    2009.                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.1   | Certification      of Chief Executive Officer of Duckwall-ALCO Stores, Inc. dated December      10, 2009, pursuant to Rule 13a-4(a) under the Securities Exchange Act of      1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.2   | Certification      of Chief Financial Officer of Duckwall-ALCO Stores, Inc. dated December      10, 2009, pursuant to Rule 13a-4(a) under the Securities Exchange Act of      1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 32.1   | Certification      of Chief Executive Officer of Duckwall-ALCO Stores, Inc, dated December      10, 2009, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002, which is furnished with      this Quarterly Report on Form 10-Q for the quarter ended November 1, 2009      and is not treated as filed in reliance upon § 601(b)(32) of      Regulations S-K.  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 32.2   | Certification      of Chief Financial Officer of Duckwall-ALCO Stores, Inc., dated December      10, 2009, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002, which is furnished with      this Quarterly Report on Form 10-Q for the quarter ended November 1, 2009      and is not treated as filed in reliance upon § 601(b)(32) of      Regulations S-K. |

----

| Signature      and Title                                | Date                   |
|---------------------------------------------------------|------------------------|
|                                                    |                   |
| /s/      Lawrence J. Zigerelli                          | December      10, 2009 |
| Lawrence      J. Zigerelli                              |                   |
| President      and Chief Executive Officer              |                   |
| (Principal      Executive Officer)                      |                   |
|                                                    |                   |
| /s/      Donny R. Johnson                               | December      10, 2009 |
| Donny      R. Johnson                                   |                   |
| Executive      Vice President - Chief Financial Officer |                   |
| (Principal      Financial and Accounting Officer)       |                   |
|                                                    |                   |
| /s/      Raymond A.D. French                            | December      10, 2009 |
| Raymond      A.D. French                                |                   |
| Director                                                |                   |
|                                                    |                   |
| /s/      Dennis E. Logue                                | December      10, 2009 |
| Dennis      E. Logue                                    |                   |
| Director                                                |                   |
|                                                    |                   |
| /s/      Lolan C. Mackey                                | December      10, 2009 |
| Lolan      C. Mackey                                    |                   |
| Director                                                |                   |
|                                                    |                   |
| /s/      Royce L. Winsten                               | December      10, 2009 |
| Royce      L. Winsten                                   |                   |
| Director      - Chairman of Board                       |                   |
|                                                    |                   |
| /s/      James V. Worth                                 | December      10, 2009 |
| James      V. Worth                                     |                   |
| Director                                                |                   |

----