CONTACT:                                                                                                                                                                      **Exhibit 99**

George R. Mahoney, Jr.

Executive Vice President

(704) 814-3252

http://www.familydollar.com

 

For Immediate Release

 

 

 

**FAMILY DOLLAR REPORTS SALES FORDECEMBER 2004**

 

**MATTHEWS, NC, January 6, 2005** - Family Dollar Stores, Inc. (NYSE: FDO), a discount storechain operating 5,547 stores in 44 states, reported sales for the five-weekperiod ended January 1, 2005, of approximately $742.8 million, or 12.8% abovesales of $658.7 million for the similar period in the prior fiscal year.  Sales in existing stores for the five-weekperiod ended January 1, 2005, increased approximately 4.0% above existing storesales for the similar period in the prior fiscal year, including an increase ofapproximately 6.0% in sales of hardlines and a decrease of approximately 2.8%in sales of softlines.  The strongestsales growth was in basic consumables, such as paper products and food, and incertain hardlines seasonal categories, including electronics, toys and trim-a-tree.

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**                Forthe eighteen-week period ended January 1, 2005, sales were approximately $2.123billion, or 11.6% above sales of $1.903 billion for the similar period in theprior fiscal year.  Sales in existingstores for the eighteen-week period ended January 1, 2005, increasedapproximately 3.0% above existing store sales for the similar period in theprior fiscal year, including an increase of approximately 5.0% in sales ofhardlines and a decrease of approximately 4.0% in sales of softlines.**

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**                As ofJanuary 1, 2005, there were 5,539 stores in operation, including 16 stores thatwere opened during the five-week period ended on that date.**

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**                Aspreviously announced, the Company’s plan is for sales in existing stores in thefour-week period ending January 29, 2005, to increase in the 2% to 3% range.**

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**                Certainstatements**contained in this press release which are nothistorical facts are forward-looking statements made pursuant to the safeharbor provisions of the Private Securities Litigation Reform Act of 1995.These forward-looking statements address the

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**Continued . . .**

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**Release/January 6, 2005**

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**Company’s plans and activities or events which theCompany expects will or may occur in the future.  A number of important factors could causeactual results to differ materially from those expressed in any forward-lookingstatements.  Such factors include, butare not limited to, competitive factors and pricing pressures, general economicconditions, the impact of acts of war or terrorism, changes in consumer demandand product mix, unusual weather that may temporarily impact sales, inflation,merchandise supply constraints, general transportation or distribution delaysor interruptions, dependence on imports, changes in currency exchange rates,trade restrictions, tariffs, quotas, and freight rates, availability of realestate, costs and delays associated with building, opening and operating newdistribution facilities and stores, costs, potential problems and achievementof results associated with the implementation of new programs, systems andtechnology, including supply chain systems, store technology, coolerinstallations and urban initiative programs, changes in food and energy pricesand their impact on consumer spending and the Company’s costs, legalproceedings and claims, changes in shrinkage, changes in health care and otherinsurance costs, and the effects of legislation and regulations on wage levelsand entitlement programs.  Consequently,all of the forward-looking statements made are qualified by these and otherfactors, risks and uncertainties. Readers are cautioned not to place unduereliance on these forward-looking statements, which speak only as of the dateof this release. The Company does not undertake to publicly update or reviseits forward-looking statements even if experience or future changes make itclear that projected results expressed or implied in such statements will notbe realized.**

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1/6/05

 

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