Family Dollar Announces $250 Million Share Repurchase

Family Dollar Stores, Inc.

announced today it entered into an accelerated share repurchase agreement with Wells Fargo Bank, N.A. under which the Company will repurchase shares of its common stock. The Company is repurchasing shares under the agreement as part of its previously announced $750 million share repurchase authorization. Under the accelerated share repurchase agreement, the Company will pay an aggregate of $250 million to the bank on October 7, 2010, for a number of shares that will be determined based on average prices of the Company's common stock during a specified period. The Company is funding the repurchase with cash on hand.