Thursday, August 7, 1997

FOR IMMEDIATE RELEASE

Investor Contact:
Russell Solt, Venture Stores
314/281-7800

Media Contact:
Randy Myers or Tom Goyda, Shandwick
314/436-6565

Deal to Provide $75 Million in Cash to Support Ongoing Repositioning Strategy

O'Fallon, Mo., Aug. 7, l997&emdash;Venture Stores, Inc. today announced a deal with Kimco Realty Corporation, with a total value of approximately $135 million involving the sale of a variety of Venture real estate assets. The transaction will provide Venture with approximately $75 million in additional cash to finance the continuation of the company's repositioning as a family value retailer. It also includes the assumption by Kimco of approximately $60 million of existing mortgage debt on certain properties.

"The new real estate transaction is the latest element of a strategy to give Venture additional financial stability needed to return to growth and profitability over the long term," said Robert N. Wildrick, Venture's chairman and chief executive officer. "Venture's stronger capital position and the company's improving sales trend, as reflected in consecutive monthly sales increases in June and July, provide us with solid momentum as we move forward with our repositioning in the second half of the year.

"With the cash from the real estate transaction and our other financial initiatives, Venture will have more than adequate funding available as we enter our peak borrowing season," he added.

In addition to the $75 million generated by the real estate transaction, Wildrick pointed to two other initiatives completed this year as part of Venture's financial strategy to support its repositioning:

The sale of 20 under performing stores to Kmart Corporation, which raised $38 million plus additional cash from liquidation sales at those locations.

A new secured credit line arranged by BT Commercial Corporation, which increased Venture's borrowing capacity during peak periods by more than $30 million through a higher facility amount and more favorable advance rates.

The real estate transaction which has a total value of approximately $135 million, includes Venture fee and leasehold properties, retail space occupied by others, vacant land and other real estate assets is being handled by Kimco Realty Corporation, a leading real estate investment trust. Venture announced last month that it would work with Kimco to leverage the value of Venture's real estate portfolio.

All 93 Venture locations will continue to operate as Venture stores with no impact on store operations, Venture associates, or customers as a result of this real estate transaction.

"This is a win-win situation that provides Kimco with a solid addition to its real estate holding and Venture with additional capital to pursue its repositioning," said Milton Cooper, chairman and chief executive officer of Kimco.

Venture, formerly a discount general merchandise chain, is transforming itself into a family value retailer offering an expanded selection of home, family apparel and leisure merchandise. The concept is targeted at time-pressed, value-minded consumers who want high quality merchandise at low prices day-in and day-out.

Venture will operate 93 family value stores in nine states, after the sale of the 20 locations to Kmart is completed. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.