September 15, 2003

News Release: The Bon-Ton Increases Its Offer to Acquire Elder-Beerman to $8.00 Per Share

The Bon-Ton Stores, Inc. (Nasdaq:BONT) today announced that it has increased the proposed consideration payable to shareholders of The Elder-Beerman Stores Corp. (Nasdaq:EBSC) to $8.00 per share in cash for each share of common stock in connection with The Bon-Ton's definitive proposal to acquire Elder-Beerman. In a letter from Tim Grumbacher, Chairman and Chief Executive Officer of The Bon-Ton, to the Board of Directors of Elder-Beerman, Mr. Grumbacher stated that The Bon-Ton was prepared to immediately sign a merger agreement with respect to the acquisition. The proposed merger agreement provides that promptly after all parties execute the agreement, a subsidiary of The Bon-Ton would commence a cash tender offer for all outstanding shares of Elder-Beerman at $8.00 per share, followed by a second step merger of Elder-Beerman with the subsidiary. Mr. Grumbacher also stated that The Bon-Ton has obtained letters from financing sources confirming that The Bon-Ton has commitments to finance the $8.00 offer. The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 68 stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin, Pennsylvania and Iowa.

The Bon-Ton Stores, Inc. operates 72 department stores in targeted markets in Pennsylvania, New York, Maryland, New Jersey, Connecticut, Massachusetts, New Hampshire, Vermont and West Virginia. The stores carry a broad assortment of quality, brand-name fashion apparel and accessories for women, men and children, as well as distinctive home furnishings.

Note: Statements made in this press release, other than statements of historical information, are forward looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Factors that could cause such differences include, but are not limited to, negotiation and completion of a formal transaction agreement, actions taken by Elder-Beerman or other parties and governmental regulatory processes.

THIS ANNOUNCEMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NEITHER AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SHARES OF ELDER-BEERMAN OR THE BON-TON. THE BON-TON INTENDS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION TENDER OFFER DOCUMENTS WITH RESPECT TO THE PROPOSED TENDER OFFER. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL INCLUDE IMPORTANT INFORMATION. INVESTORS AND SECURITY HOLDERS MAY OBTAIN A FREE COPY OF ANY DOCUMENTS FILED BY THE BON-TON WITH THE SEC AT THE SEC'S WEBSITE AT WWW.SEC.GOV OR FROM THE BON-TON AT 2801 EAST MARKET STREET, YORK, PA 17402, ATTN: INVESTOR RELATIONS.

SOURCE: The Bon-Ton Stores, Inc.

The Bon-Ton Stores, Inc. Mary Kerr, 717-751-3071

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