The Bon-Ton Stores Announces Exchange Offer and Consent Solicitation

The Bon-Ton Stores, Inc.

today announced that The Bon-Ton Department Stores, Inc., a wholly-owned subsidiary of Bon-Ton (the “Issuer”), has commenced an offer to certain eligible noteholders described below to exchange any and all of its outstanding 10¼% Senior Notes due 2014 (CUSIP Nos 09776NAB8 and 09776NAA0, ISIN USU09818AA04) (the “Old Notes”) for newly issued 10⅝% Second Lien Senior Secured Notes due 2017 (the “New Notes”), upon the terms and conditions set forth in the Confidential Offering Memorandum and Consent Solicitation Statement dated June 4, 2012 (the “Exchange Offer”). The purpose of the Exchange Offer is to enhance Bon-Ton's financial flexibility by refinancing the Old Notes to 2017. Eligible holders that validly tender and do not validly withdraw their Old Notes in the Exchange Offer prior to 5:00 p.m., New York City time, on June 15, 2012 (the “Early Deadline”) will receive $1,000 in principal amount of New Notes per $1,000 principal amount of Old Notes, which includes a “Consent and Early Tender Payment” of $30 in principal amount of New Notes. For any Old Notes tendered after the Early Deadline, eligible holders will receive $970 in principal amount of New Notes per $1,000 principal amount of Old Notes. Eligible holders will also receive accrued and unpaid interest in cash on the exchanged Old Notes through, but not including, the settlement date for the Exchange Offer.