EXHIBIT 99

FOR IMMEDIATE RELEASE: JULY 2, 1997

Heilig-Meyers Company (NYSE:HMY),  the Richmond-based home furnishings retailer,
today announced that it has acquired all of the outstanding capital stock of the
privately held Mattress  Discounters  Corporation.  Mattress  Discounters is the
nation's largest retail bedding specialist  currently operating 169 stores in 10
states and  Washington  D.C. with fiscal 1996 revenues of  approximately  $175.0
million.  The initial  purchase  price was $42.9 million.  Heilig-Meyers  issued
2,269,839  shares of common stock at the time of closing and also placed 264,550
shares of common stock, with an approximate value of $5.0 million,  in escrow to
be paid to the former  shareholders  of  Mattress  Discounters  if the  acquired
stores meet certain earnings targets in the twelve months following  yesterday's
closing.  The transaction  has been structured as a tax-free  exchange of shares
and will be accounted for under purchase accounting rules.

Troy A. Peery,  Jr.,  President and Chief Operating  Officer commented that this
specialty  retailing  format fits well with  Heilig-Meyers'  already  successful
bedding  programs.  He added that Mattress  Discounters will operate as a wholly
owned subsidiary of Heilig-Meyers  Company and that consolidated  annual bedding
sales would be in excess of $400 million  creating by far the  nation's  largest
retailer in this category. Mr. Peery also noted that the transaction is expected
to be slightly accretive to earnings in fiscal 1998.

William  C.  DeRusha,  Chairman  and Chief  Executive  Officer,  commented  that
Mattress Discounters is a well run and profitable company. He added that founder
Warren Teitelbaum and current CEO Steven Lytell have created a highly successful
retailing formula and marketing  strategy that has resulted in revenue growth in
excess  of  200%  over  the  past  five  years.  Mr.  DeRusha  also  noted  that
Heilig-Meyers  plans  to  maintain  the  current  management  team  at  Mattress
Discounters  and will continue with their  current  expansion  plans of 20 to 25
units in new and existing markets by fiscal year end.

Heilig-Meyers  Company,  a Virginia  corporation,  currently operates a total of
1,163 stores; 845 as Heilig-Meyers,  169 as Mattress Discounters,  99 as Rhodes,
18 as The RoomStore and 32 stores in Puerto Rico as Berrios.

Information  contained in this  release  with respect to the expected  financial
impact and growth  plans  relating to the  purchase of Mattress  Discounters  is
forward-looking.  These statements  reflect the Company's  reasonable  judgments
with respect to future  events and are subject to risks and  uncertainties  that
could   cause   actual   results  to  differ   materially   from  those  in  the
forward-looking  statements.  Such factors include,  but are not limited to, the
customer's  willingness,  need and  financial  ability to  purchase  bedding and
related items, the costs and effectiveness of promotional  activities as well as
the Company's  access to, and cost of capital.  Other factors such as changes in
tax laws,  recessionary or expansive trends in the Company's markets,  inflation
rates and regulations and laws which affect the Company's ability to do business
in its markets may also impact the outcome of the forward looking statements.