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Family Dollar Increases Quarterly Cash Dividend

    MATTHEWS, N.C., Jan. 15 /PRNewswire-FirstCall/ -- The Board of Directors
of Family Dollar Stores, Inc. (NYSE: FDO) today declared a quarterly cash
dividend on the Company's common stock of $.08-1/2 per share, payable
April 15, 2004, to shareholders of record at the close of business on
March 15, 2004.  The quarterly cash dividend of $.08-1/2 per share is an
increase of 13.3% from the preceding quarterly cash dividend of $.07-1/2 per
share.  The dividend increase represents the twenty-eighth consecutive year
that the dividend has been increased.
    Family Dollar Stores, Inc. operates a rapidly expanding chain of 5,122
stores in 43 states ranging as far northwest as North Dakota, northeast to
Maine, southeast to Florida and southwest to Arizona.


SOURCE Family Dollar Stores, Inc.




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    CONTACT:
    George R. Mahoney, Jr., Executive Vice
    President of Family Dollar Stores, Inc., +1-704-814-3252