<TABLE>
<CAPTION>
                 FAMILY DOLLAR STORES, INC. STATEMENT RE COMPUTATIONS OF PER SHARE EARNINGS

AS PRESENTED                                                       FY 1999                            FY 1998
                                                           BASIC         DILUTED              BASIC           DILUTED
<S>                                                     <C>            <C>                 <C>             <C>
AVERAGE SHARES OUTSTANDING FOR THE YEAR ENDED            172,511,199    172,511,199         172,008,335     172,008,335

NET INCOME                                              $140,079,267   $140,079,267        $103,287,925    $103,287,925

EARNINGS PER SHARE:
 NET INCOME                                                    $0.81          $0.81               $0.60           $0.60

PRO FORMA DILUTION IMPACT OF COMMON STOCK EQUIVALENTS

ADDITIONAL WEIGHTED AVERAGE SHARES FROM ASSUMED EXERCISE
  AT THE BEGINNING OF THE YEAR OF DILUTIVE STOCK OPTIONS                  3,981,238                           3,710,285

WEIGHTED AVERAGE SHARES ASSUMED REPURCHASED FROM
  ASSUMED PROCEEDS OF EXERCISES USING TREASURY STOCK
  METHOD (AVERAGE MARKET PRICE)                                         (2,658,087)                          (2,494,985)

NET PRO FORMA COMMON STOCK EQUIVALENT INCREMENTAL SHARES                 1,323,151                            1,215,300

PERCENTAGE DILUTION FROM PRO FORMA COMMON
  STOCK EQUIVALENT INCREMENTAL SHARES                                        0.77%                                0.71%

TOTAL COMMON STOCK AND COMMON STOCK EQUIVALENTS                        173,834,350                          173,223,635

NET INCOME                                                            $140,079,267                         $103,287,925

PRO FORMA EARNINGS PER SHARE (INCLUDING DILUTIVE
  COMMON STOCK EQUIVALENTS):
  NET INCOME                                                                 $0.81                                $0.60

<PAGE>


<CAPTION>

                                                                                                      FY 1997
                                                                                              BASIC           DILUTED
                                                                                            <C>             <C>
                                                                                            171,187,420     171,187,420

                                                                                            $74,676,737     $74,676,737


                                                                                                  $0.44           $0.44




                                                                                                              3,231,482



                                                                                                             (2,700,950)

                                                                                                                530,532


                                                                                                                  0.31%

                                                                                                            171,717,952

                                                                                                            $74,676,737



                                                                                                                  $0.44
</TABLE>