Fred's Reports Higher September Sales

  Fred's Reports Higher September Sales

Business Wire

MEMPHIS, Tenn. -- October 10, 2013

Fred's Inc. (NASDAQ: FRED) today reported higher sales for the five-week
fiscal month of September and eight-month year-to-date period ended
October5,2013.

Fred's total sales for the month increased 4% to $177.3 million compared with
$170.9million in September 2012. Comparable store sales for the month
increased 2.8% versus a decline of 3.8% in the same period last year.

Fred's total sales for the year-to-date period increased 1% to $1.301 billion
compared with $1.282 billion for the same period last year. On a comparable
store basis, year-to-date sales increased 0.8% versus a decline of 1.2% in the
same period last year.

Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said,
"We are pleased to report that Fred's 2.8% comparable store sales increase for
September was at the high end of our projected range. This improvement
reflected ongoing positive trends in our general merchandise and pharmacy
departments. We continue to experience success from our reconfiguration plan,
as the pharmacy department comparable store sales and script growth were key
to this month's performance." Efird noted that Fred's rolled out its
reconfiguration plan, which includes the Hometown Auto & Hardware and expanded
Health Aids departments, to an additional 95 stores during September. To date,
a total of 320 stores or 47% of the chain has been reconfigured. "Given the
progress we achieved during the second quarter, we remain confident that third
quarter earnings will be within the range previously forecasted," Efird added.

During the month, Fred's opened two stores and three Xpress pharmacy
locations.

Fred's, Inc. operates 702 discount general merchandise stores, including 21
franchised Fred's stores, in the southeastern United States. For more
information about the Company, visit Fred's website at www.fredsinc.com.

Comments in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include, but are not
limited to, general economic trends, changes in consumer demand or purchase
patterns, delays or interruptions in the flow of merchandise between the
Company's distribution centers and its stores or between the Company's
suppliers and same, a disruption in the Company's data processing services,
costs and delays in acquiring or developing new store sites, and other
contingencies discussed in the Company's Securities and Exchange Commission
filings. Fred's undertakes no obligation to release revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unforeseen events, except as required
to be reported under the rules and regulations of the Securities and Exchange
Commission.

Contact:

Fred's Inc.
Jerry A. Shore, 901-362-3733, Ext. 2217
Executive Vice President and Chief Financial Officer
 
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