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ShopKo Announces Management Reorganization

From: ASAP

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ShopKo Stores, Inc., (NYSE:SKO) today announced the reorganization of its ShopKo division's merchandising, marketing and replenishment areas. Kevin Easton has been promoted to corporate Executive Vice President and ShopKo division Chief Merchandising Officer effective immediately, and will be reporting directly to Sam Duncan, ShopKo Stores, Inc. President and Chief Executive Officer. Mr. Easton, age 46, joined ShopKo in 2001 as Senior Vice President and General Merchandise Manager - Apparel.

"I am delighted to have Kevin lead our transformation to a genuinely merchandising-driven organization," said Mr. Duncan. "He brings a wealth of experience and leadership to our business and will be a critical contributor as we refine our strategic direction."

Easton has over twenty years of retail experience including twelve years at Target Corporation, where he last served as Vice President/Merchandise Manager. Prior to joining Target, Mr. Easton held merchandising positions with the F & R Lazurus and Sanger Harris/Foley's divisions of Federated Department Stores. Easton holds a B.A. degree from Ohio State University.

Gary A. Hillermann, Senior Vice President, GMM - Hardlines, Steven T. Harig, Senior Vice President - Planning, Replenishment & Analysis, Distribution & Transportation, and L. Terry McDonald, Senior Vice President - Marketing and Communications, are leaving the company as a result of the reorganization and elimination of these three senior vice president positions. Their responsibilities are being reassigned to other executives, reporting principally to Mr. Easton.

ShopKo Stores, Inc., a Fortune 500 company headquartered in Green Bay, Wis., operates 364 retail stores in 23 states, primarily in the Midwest, Western Mountain and Pacific Northwest regions. Retail operations include 141 specialty discount stores operating under the ShopKo name in mid-sized and larger cities, and 223 Pamida discount stores in smaller, rural communities. For more information about ShopKo or Pamida visit our website at 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. 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.

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