ALCO Stores, Inc. Responds Regarding Proposed Alternative Slates of Directors

ALCO Stores, Inc. Responds Regarding Proposed Alternative Slates of Directors

COPPELL, Texas, March 12, 2014 (GLOBE NEWSWIRE) -- ALCO Stores, Inc.
(Nasdaq:ALCS) ("ALCO" or the "Company") today announced a response regarding
the two stockholder groups that have each declared their intention to submit
nominees to replace the current members of the Company's Board of Directors
(the "Board").

Over the course of the past month, two separate groups of stockholders have
stated their intention to replace the Company's entire Board.

  oThe first group (the "First Group"), which first filed soliciting material
    with the Securities and Exchange Commission ("SEC") on February 18, 2014,
    states that it is led by David W. Pointer and Dilip Singh and is
    associated with Charles M. Gillman, John M. Climaco, VI Capital Fund, LP,
    and VI Capital Management, LLC. The First Group collectively claims to
    control 36,724 shares, or 1.13%, of the Company's outstanding common
    stock.
    
  oThe second group (the "Second Group"), which first filed soliciting
    material with the SEC on March 6, 2014, comprises Milwaukee Private Wealth
    Management, Inc., whose President and CEO is Jeffrey Geygan, and five
    other participants to be nominated as directors. The Second Group
    collectively claims to control 113,995 shares, or 3.5%, of the Company's
    outstanding common stock.

The Board is currently investigating the background and qualifications of the
individuals associated with these groups, including the director nominees.The
Board is concerned with any group taking control of the Company without
offering all stockholders a control premium.

The Board is aware, based upon its preliminary review, that Charles Gillman,
Dilip Singh, John Climaco and others associated with the First Group have
previously been involved in contested elections for boards of directors at
other publicly traded companies, including InfuSystem Holdings, Inc., MRV
Communications, Inc., Aetrium Incorporated, and Digirad Corporation.The Board
is investigating and reviewing these prior activities, including previous
disclosures made in connection with election contests and their consistency
with subsequent actions; compensation and other benefits taken from the target
companies; and the First Group's tenure as board members and officers of the
target companies once elected, among other activities.

The Board is also aware that Mr. Geygan is a plaintiff in a derivative action
brought against the Board and is seeking money damages alleging the attempted
sale of the Company in 2013 was for inadequate consideration.The Board is
also investigating other factors that may be material to the Second Group's
potential nominees.

As the Company previously disclosed, on October 30, 2013, the Company's
stockholders voted not to approve a sale of the Company pursuant to a merger
transaction that would have resulted in a payment to stockholders of $14.00
per share in cash, a premium of 63% to the Company's closing stock price on
the last trading day prior to the announcement of the proposed
transaction.The submission of this transaction to stockholders was the
culmination of a focused effort, that began in 2007 and has continued until
today, to deliver a premium-priced liquidity event to stockholders.The
Company employed two investment banking firms to assist with the process and
has reviewed and pursued numerous possibilities for strategic,
value-maximizing transactions.The proposed transaction that the Company's
stockholders voted not to accept in October 2013 was submitted to stockholders
after the Board had solicited more than 50 parties to ascertain whether a
superior proposal was available for stockholders.Both Glass, Lewis & Co., LLC
and Institutional Shareholder Services ("ISS") recommended that the Company's
stockholders vote in favor of the merger transaction, with ISS noting "the
significant premium, thorough process and positive market reaction" in its
recommendation.The Board invites stockholders to review the thorough efforts
undertaken for the benefit of all stockholders to secure a premium-priced
transaction as disclosed in the Company's proxy statement filed with the SEC
on October 1, 2013.

The Board believes the disruption caused by these two stockholder groups will
impede the progress the Company is making in executing its strategy.After
moving the Company's headquarters to Coppell, Texas from Abilene, Kansas and
making significant investments to implement an improved technical
infrastructure, the Board believes that it is well situated to deliver value
to stockholders.The Board also continually evaluates the possibility of
strategic transactions that could benefit all stockholders.

The Board urges each stockholder to conduct its own investigation into the
stockholder groups before taking any action.

About ALCO Stores, Inc.

Founded in 1901, ALCO is a broad-line retailer, primarily serving small
underserved communities across 23 states, which specializes in providing a
superior selection of essential products for everyday life in small-town
America.The Company has 210 ALCO stores that offer both name brand and
private label products of exceptional quality at reasonable prices.ALCO is
proud to have continually provided friendly, personal service to its customers
for the past 112 years.ALCO has its corporate headquarters in suburban
Dallas, Texas, and its distribution center in Abilene, Kansas.To learn more
about the Company visit www.ALCOstores.com.

Additional Information and Where to Find It

This press release may be deemed to be solicitation material with respect to
the matters to be considered at the Company's 2014 annual meeting of
stockholders.The Company will be filing a proxy statement with the SEC
regarding the annual meeting.Additionally, the Company files annual,
quarterly and current reports, proxy and information statements and other
information with the SEC. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE
PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE
SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION.Investors and stockholders may obtain free copies of such
documents filed with the SEC at the SEC's web site, www.sec.gov. In addition,
stockholders may obtain free copies of the documents filed with the SEC by
ALCO through the Investor Relations section of our website, located at
www.alcostoresinc.com/investors.aspx, or by requesting them in writing or by
telephone from the Company at ALCO Stores, Inc., Attn: Corporate Secretary,
751 Freeport Parkway, Coppell, Texas 75109, (469) 322-2900.

Participants in Solicitation

The Company and its directors, executive officers, other members of management
and employees may be deemed to be participants in the solicitation of proxies
with respect to the matters to be considered at the Company's 2014 annual
meeting of stockholders.Information regarding the interests of the Company's
directors and executive officers in the solicitation of proxies will be
included in the Company's proxy statement and annual report on Form 10-K for
the fiscal year ended February 3, 2014.

Forward-looking statements

All of the statements in this release, other than historical facts, are
forward-looking statements made in reliance upon the safe harbor of the
Private Securities Litigation Reform Act of 1995.Forward-looking statements
can be identified by the inclusion of "will," "believe," "intend," "expect,"
"plan," "project" and similar future-looking terms.You should not rely unduly
on these forward-looking statements. These forward-looking statements reflect
management's current views and projections regarding economic conditions,
retail industry environments, and Company performance.Forward-looking
statements inherently involve risks and uncertainties, and, accordingly,
actual results may vary materially.Factors which could significantly change
results include but are not limited to: sales performance, expense levels,
competitive activity, interest rates, changes in the Company's financial
condition, and factors affecting the retail category in general. Further risks
that could cause actual results to differ materially from those matters
expressed in or implied by such forward-looking statements are set forth under
"Risk Factors" in the Company's Form 10-K for the fiscal year ended February
3, 2013, and its subsequent quarterly reports on Form 10-Q.The Company does
not undertake, and hereby disclaims, any duty to update these forward-looking
statements, although its situation and circumstances may change in the future.

CONTACT: Wayne S. Peterson
         Senior Vice President - Chief Financial Officer
         469-322-2900 ext. 1071
         email: wpeterson@alcostores.com
         or
         Debbie Hagen
         Hagen and Partners
         913-642-6363
         email: dhagen@hagenandpartners.com

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