ShopKo Announces Sale of Colorado Stores

ShopKo Announces Sale of Colorado Stores

GREEN BAY, Wis., July 19 /PRNewswire-FirstCall/ -- ShopKo Stores, Inc. (NYSE:SKO), announced it has sold its three ShopKo stores located in Colorado (Ft. Collins, Longmont and Loveland) to Regency Realty Group, Inc. Merchandise in the stores will be liquidated and the stores closed in approximately 90 days.

"We want to thank our customers in Colorado for their loyal patronage, and our teammates for their hard work over the years," said ShopKo chief financial officer and co-chief executive officer Brian Bender.

ShopKo executives say the sale of the three properties is not related to the announcement of the merger agreement signed in early April between ShopKo Stores, Inc., and a private equity investment firm. The company cited economic considerations as the reason for the closings. ShopKo originally opened the Longmont and Loveland stores in 1993 and the Ft. Collins store in 1994.

The affected Colorado stores employ approximately 320 teammates and, where possible, individuals are being offered positions at other ShopKo locations or severance packages according to the company's severance guidelines. ShopKo pharmacy or optical customers will be notified with more specific information.

ShopKo Stores, Inc. is a retailer of quality goods and services headquartered in Green Bay, Wis., with stores located throughout the Midwest, Mountain and Pacific Northwest regions. Retail formats include 140 ShopKo stores, providing quality name-brand merchandise, great values, pharmacy and optical services in mid-sized to larger cities; 223 Pamida stores, 116 of which contain pharmacies, bringing value and convenience close to home in small, rural communities; and three ShopKo Express Rx stores, a new and convenient neighborhood drugstore concept. With more than $3.0 billion in annual sales, ShopKo Stores, Inc. is listed on the New York Stock Exchange under the symbol SKO. For more information about ShopKo, Pamida or ShopKo Express Rx, visit our Web site at http://www.shopko.com/ .

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding expected sales and other financial results. Such statements are subject to important factors that could cause ShopKo's actual results to differ materially from those anticipated by the forward-looking statements including those referenced in ShopKo's current annual report on Form 10-K or as may be described from time to time in ShopKo's subsequent SEC filings; and such factors are incorporated by reference.

Source: ShopKo Stores, Inc.

CONTACT: Media, John Vigeland, +1-920-429-4132, or Investor Relations, +1-920-429-7039, both of ShopKo Stores

Web site: http://www.shopko.com/

------- Profile: Ent