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Family Dollar Increases Quarterly Cash Dividend

    MATTHEWS, N.C., Jan. 20 /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 $.09-1/2 per share, payable April
15, 2005, to shareholders of record at the close of business on March 15,
2005.  The quarterly cash dividend of $.09-1/2 per share is an increase of
11.8% from the preceding quarterly cash dividend of $.08-1/2 per share.  The
dividend increase represents the twenty-ninth consecutive year that the
dividend has been increased.
    Family Dollar Stores, Inc. operates a rapidly expanding chain of 5,556
stores in 44 states ranging as far northwest as Idaho, 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