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Duckwall-ALCO Stores to Implement Oracle System

Midwest retailer chooses Oracle to automate and streamline operations

ABILENE, Kan., July 12, 2005 (PRIMEZONE) -- As Duckwall-ALCO Stores, Inc. launches a major information technology upgrade, the company announced today it has selected Oracle(r) for its new technology platform.

Duckwall-ALCO Stores will use the Oracle(r) E-Business Suite to help automate and streamline its business operations, better positioning the company for growth. In addition to a Financial Management component, the Oracle E-Business Suite includes Oracle Internal Controls Manager and Oracle Human Resources Management software.

Tony Corradi, Vice President and Chief Technology Officer for Duckwall-ALCO Stores, said, "Oracle solutions address the exact needs of our business and do so in a way that positions us for growth. In particular, we are streamlining and automating financial and human resources functions so we can direct more of our resources to other major corporate initiatives."

Oracle Human Resources Management solution (HRMS) will automate human resources activities, including hiring, payroll and benefits for Duckwall-ALCO's more than 5,000 employees. Oracle HRMS uses a unified data model to establish a single, accurate view of human resources-related activities, including recruiting, performance management, learning, compensation and real-time analytics.

Oracle Internal Controls Manager (ICM) will document and test internal controls and monitor ongoing compliance with Sarbanes-Oxley. The application defines risks, controls and business processes. From there, the application manages audit processes including findings, remediation and issues.

Duckwall-ALCO's President and Chief Executive Officer Bruce Dale added, "Early in the year we made a commitment to upgrade the technology in all facets of our business. We are pleased to partner with Oracle as we start this process, creating a solid IT foundation. We look forward to introducing other important technology initiatives that will increase our efficiencies and enhance our customer service capabilities, accelerating the success and growth of Duckwall-ALCO Stores."

About Duckwall-ALCO Stores

Duckwall-ALCO Stores, Inc. is a leading regional retailer that specializes in offering a wide variety of products at reasonable prices to the underserved communities of America. Founded in 1901 by A.L. Duckwall as a general merchandising operation in Abilene, Kan., Duckwall-ALCO is known for its convenient locations and for its friendly, personal service. The company has 247 stores in 21 states across the central United States, operating under two names, ALCO and Duckwall. ALCO discount stores offer a full line of merchandise, while Duckwall variety stores serve smaller communities, offering a smaller selection.

Forward-looking Statements

This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 (the "Act"). Any forward-looking statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments and Company performance. Factors, which could significantly change results, include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's quarterly 10-Q filings and other public documents, copies of which are available from the Company on request.

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Oracle, JD Edwards, PeopleSoft, and Retek are registered trademarks of Oracle Corporation and/or its affiliates.

CONTACT:  Duckwall-ALCO Stores, Inc. 
          Dick Mansfield
          Vice President/Finance, 
          Treasurer and Chief Financial Officer
          (785) 263-3350, Ext. 286
          Email: dmansfield@duckwall.com
          website: www.alcostores.com

          Hagen and Partners 
          Debbie Hagen
          (913) 652-6547
          Email: dhagen@hagenandpartners.com