Exhibit 99.1

                                 [LETTERHEAD]

Contact: Bryan M. DeCordova
Executive Vice President --
Chief Financial Officer
(972) 409-1581

Christopher J. Holland
Vice President -- Finance
(972) 409-1667

NEWS RELEASE FOR IMMEDIATE RELEASE

                MICHAELS ANNOUNCES $150 MILLION DEBT ISSUANCE

IRVING, Texas - June 19, 2001 - Michaels Stores, Inc. (Nasdaq: MIKE) today
announced that it is planning an offering of $150 million of Senior Notes due
2009 to certain institutional investors in an offering exempt from the
registration requirements of the Securities Act of 1933.  The Company intends
to use a portion of the proceeds from the offering to redeem its existing
107/8% Senior Notes due 2006.

     The Notes to be offered have not been registered under the Securities
Act of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.  This
press release shall not constitute an offer to sell or a solicitation of an
offer to buy such notes and is issued pursuant to Rule 135c under the
Securities Act of 1933.







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8000 BENT BRANCH DRIVE - IRVING, TEXAS 75063
972/409-1300