SKO Shopko Stores

GREEN BAY, Wis., Aug. 10 /PRNewswire-FirstCall/ -- ShopKo Stores, Inc. (NYSE:SKO) announced today that it has amended and extended its offer to purchase (the "Offer") any and all of its outstanding $100 million principal amount of 9-1/4% Senior Notes due 2022 (the "Notes") in connection with the previously announced definitive merger agreement that provides for the acquisition of ShopKo by Badger Retail Holding, Inc. and Badger Acquisition Corp., which are affiliates of Minneapolis-based private equity firm Goldner Hawn Johnson & Morrison Incorporated (the "Merger"). The Offer, scheduled to expire on Wednesday, August 10, 2005 at 5:00 P.M., New York City time, will now expire at 5:00 P.M., New York City time, on Wednesday, August 24, 2005, unless further extended by ShopKo or earlier terminated. Holders will now be able to receive the $50.00 consent payment if they tender their bonds before 5:00 P.M., New York City time, on Monday, August 15, 2005, unless further extended by ShopKo or earlier terminated (the "Consent Deadline"). As amended, Holders of Notes validly tendered prior to the Consent Deadline will now receive $1,195.00 per $1,000.00 principal amount of Notes, including the consent payment of $50.00 per $1,000.00 principal amount of Notes, if such Notes are accepted for purchase. Holders who validly tender their Notes after the Consent Deadline will receive $1,145.00 per $1,000.00 principal amount of Notes, if such Notes are accepted for purchase. Tendered Notes may no longer be withdrawn. Holders who have previously tendered Notes do not need to take any action to receive the increased consideration. Accrued interest up to, but not including, the settlement date will be paid in cash on all validly tendered and accepted Notes. Except as described above, all other terms, provisions and conditions of the Offer will remain in full force and effect. The terms of the Offer and Solicitation, including the proposed amendments to the indenture governing the Notes, are described in the Offer to Purchase and Consent Solicitation Statement dated June 30, 2005, as amended, copies of which may be obtained from Global Bondholder Services Corporation, the information agent for the Offer, at (866) 736-2200 (US toll free) or (212) 430-3774 (collect). ShopKo said it has been informed by the information agent that, as of 5:00 P.M., New York City time, on August 10, 2005, approximately $9.3 million in aggregate principal amount of Notes had been tendered in the Offer. This amount represents approximately 9.3% of the outstanding Notes. Banc of America Securities LLC and Morgan Stanley & Co. Incorporated are acting as the dealer managers for the Offer. Questions regarding the Offer may be directed to Banc of America Securities LLC, the lead dealer manager, at (212) 847-5834 or (888) 292-0070. THIS ANNOUNCEMENT IS NOT AN OFFER TO PURCHASE, A SOLICITATION OF AN OFFER TO PURCHASE OR SELL OR A SOLICITATION OF CONSENTS WITH RESPECT TO ANY SECURITIES. THE OFFER AND CONSENT SOLICITATION ARE BEING MADE SOLELY BY THE OFFER TO PURCHASE AND CONSENT SOLICITATION STATEMENT DATED JUNE 30, 2005. ShopKo Stores, Inc. is a retailer of quality goods and services headquartered in Green Bay, Wis., with stores located throughout the Midwest, Mountain and Pacific Northwest regions. Retail formats include 140 ShopKo stores, providing quality name-brand merchandise, great values, pharmacy and optical services in mid-sized to larger cities; 223 Pamida stores, 116 of which contain pharmacies, bringing value and convenience close to home in small, rural communities; and three ShopKo Express Rx stores, a new and convenient neighborhood drugstore concept. With more than $3.0 billion in annual sales, ShopKo Stores, Inc. is listed on the New York Stock Exchange under the symbol SKO. For more information about ShopKo, Pamida or ShopKo Express Rx, visit our Web site at http://www.shopko.com/. This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding expected sales and other financial results. Such statements are subject to important factors that could cause ShopKo's actual results to differ materially from those anticipated by the forward-looking statements including those referenced in ShopKo's current annual report on Form 10-K or as may be described from time to time in ShopKo's subsequent SEC filings; and such factors are incorporated by reference. DATASOURCE: ShopKo Stores, Inc. CONTACT: Banc of America Securities LLC, +1-212-847-5834 or 1-888-292-0070 Web site: http://www.shopko.com/

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