The Bon-Ton Stores, Inc. Announces Boston Store Grand Avenue Location Lease Extension in Milwaukee

  The Bon-Ton Stores, Inc. Announces Boston Store Grand Avenue Location Lease
  Extension in Milwaukee

Business Wire

YORK, Pa. -- January 21, 2014

The Bon-Ton Stores, Inc. (NASDAQ:BONT) today announced it has reached an
agreement with the City of Milwaukee to extend the lease for its Boston Store
location in The Shops of Grand Avenue, Milwaukee, Wisconsin, contingent upon
the City providing financial contributions from its downtown Tax Increment
Financing district. This extended store lease term would coincide with the
extended lease term for the Company’s corporate offices located above the
Boston Store with both leases expiring at January 31, 2018. These financial
arrangements require public review and City Council approval which should be
completed by April 2, 2014. In the absence of this financial support, the
Boston Store lease will expire at January 31, 2015.

“This agreement says a lot about both the history and the future of this part
of Wisconsin Avenue,” Rocky Marcoux, the City’s Commissioner of Development
said. “It maintains a long-standing and valued retailer at this location, and
it sends a message to other developers and investors that this neighborhood
offers great opportunity moving forward.”

The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania
and Milwaukee, Wisconsin, operates 270 department stores, which includes 10
furniture galleries, in 25 states in the Northeast, Midwest and upper Great
Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman,
Herberger’s and Younkers nameplates. The stores offer a broad assortment of
national and private brand fashion apparel and accessories for women, men and
children, as well as cosmetics and home furnishings. For further information,
please visit the investor relations section of the Company’s website at
http://investors.bonton.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information included in this press release contains statements that
are forward-looking within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements, which may be identified
by words such as “may,” “could,” “will,” “plan,” “expect,” “anticipate,”
“estimate,” “project,” “intend” or other similar expressions, involve
important risks and uncertainties that could significantly affect results in
the future and, accordingly, such results may differ from those expressed in
any forward-looking statements made by or on behalf of the Company. Factors
that could cause such differences include, but are not limited to: risks
related to retail businesses generally; a significant and prolonged
deterioration of general economic conditions which could negatively impact the
Company in a number of ways, including the potential write-down of the current
valuation of intangible assets and deferred taxes; risks related to the
Company’s proprietary credit card program; potential increases in pension
obligations; consumer spending patterns, debt levels, and the availability and
cost of consumer credit; additional competition from existing and new
competitors; inflation; deflation; changes in the costs of fuel and other
energy and transportation costs; weather conditions that could negatively
impact sales; uncertainties associated with expanding or remodeling existing
stores; the ability to attract and retain qualified management; the dependence
upon relationships with vendors and their factors; a data security breach or
system failure; the ability to reduce or control SG&A expenses, including
initiatives to reduce expenses and improve efficiency; operational
disruptions; unsuccessful marketing initiatives; changes in, or the failure to
successfully implement our key strategies, including initiatives to improve
our merchandising, marketing and operations; adverse outcomes in litigation;
the incurrence of unplanned capital expenditures; the ability to obtain
financing for working capital, capital expenditures and general corporate
purpose; the impact of regulatory requirements including the Health Care
Reform Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act;
the inability or limitations on the Company’s ability to favorably adjust the
valuation allowance on deferred tax assets; and the financial condition of
mall operators. Additional factors that could cause the Company’s actual
results to differ from those contained in these forward-looking statements are
discussed in greater detail under Item 1A of the Company’s Form 10-K filed
with the Securities and Exchange Commission.

Contact:

The Bon-Ton Stores, Inc.
Mary Kerr, 717-751-3071
Vice President
Investor & Public Relations
mkerr@bonton.com