Dollar Tree Stores, Inc. Signs Merger Agreement With Dollar Express, Inc.
Dollar Tree also announces $291.6 million in first quarter sales

         CHESAPEAKE, Virginia -- (BUSINESS WIRE) -- April 5, 2000 -- Dollar Tree
Stores,  Inc. (Nasdaq:  DLTR), the nation's largest $1.00 discount variety store
chain,  announced  today that it has signed a definitive  merger  agreement with
Philadelphia-based Dollar Express, Inc.

         Dollar Express,  a privately-held  corporation in operation since 1959,
owns and  operates  over 100  single-price  point  stores under the name "Dollar
Expres$".  These stores offer variety  merchandise  at a fixed price of $1.00 or
less and are located in six states in the  Mid-Atlantic  region.  Dollar Express
also operates 25 Spain's Cards and Gifts stores in the Philadelphia metropolitan
area.  During  1999,  Dollar  Express  generated  combined  net  sales of $155.5
million.

         The  acquisition  is expected to be accretive to Dollar Tree's  current
year  earnings,  before  one-time  merger costs.  Dollar Tree expects to cover a
substantial  portion  of  one-time   merger-associated  costs  with  anticipated
synergies in 2000.

         Dollar Tree does not intend to revise its 2000 store opening plans as a
result of the merger. Current plans continue to target 23% to 25% square footage
growth for the year, on a pre-pooled basis.

         Commenting  on the merger,  Macon  Brock,  President  and CEO of Dollar
Tree,  stated,  "This is a  strategic  fit for  Dollar  Tree  because  of Dollar
Express's  significant  position  in  the  Delaware  Valley  region,  especially
Philadelphia.  The Dollar Expres$ stores are well-run,  attractive and the ideal
size to complement our larger store  initiative.  The merchandise focus of these
stores is  similar to Dollar  Tree's  variety-store  mix.  The  proposed  merger
creates a stronger presence in the Mid-Atlantic  region and supports our ongoing
growth strategy."

         Under the terms of the  agreement,  Dollar  Tree will  issue or reserve
6,000,000   shares  for  Dollar  Express   outstanding   stock  and  assume  all
liabilities.  The  stock-for-stock  transaction  will  be  accounted  for  as  a
pooling-of-interests.  This  transaction is expected to close by April 30, 2000,
subject to customary conditions.

         Bernie and Murray Spain, principals at Dollar Express, stated "Over the
past year, we have considered  numerous  options  regarding our long-term plans.
Although we had considered a public offering, we believe this transaction better
meets our long-term goals and plans. This merger represents a unique opportunity
for Dollar Express to continue to grow, as a part of Dollar Tree Stores."

         In other news,  Dollar Tree also  reported net sales of $291.6  million
for the quarter ended March 31, 2000, on a pre-pooled  basis. This represents an
increase  of 28.4% over net sales of $227.0  million  for the same  period  last
year. In spite of the shift in timing of the Easter selling  season,  comparable
store net sales  increased 4.6% for the quarter.  Management  believes that this
comparable  store  net  sales  increase  is due in part to a wider  offering  of
consumer basic goods, as well as Dollar Tree's  impressive  selection of variety
merchandise.

         Dollar Tree Stores, Inc. is the nation's largest $1.00 discount variety
store chain.  Its stores offer a wide  assortment  of quality  everyday  general
merchandise,  in many traditional  variety store categories.  Dollar Tree Stores
operates  1,434  stores in 35 states as of March 31,  2000,  having added 52 new
stores and closed one store during the quarter.

         Dollar  Express,  Inc. is also a leading  operator of fixed $1.00 price
point stores in the United States.  Dollar Express currently operates 106 Dollar
Express stores in six states, and 25 Spain's Cards & Gifts Stores in the greater
Philadelphia region.

This news release contains forward-looking  statements regarding Dollar Tree and
the combined  company  after the merger,  including,  among  others,  statements
relating to accretion  to reported  earnings  and growth  prospects  that may be
realized  from the  merger,  and the  effect of  one-time  costs  related to the
merger.  Such  forward-looking  statements  are  subject  to  certain  risks and
uncertainties,  including  a variety  of  factors  that may  cause the  combined
company's actual results to differ materially from anticipated  results or other
expectations  described in such statements.  Such factors include failure of the
merger to be  consummated  and the failure of the combined  company to integrate
successfully.  Additionally,  forward-looking statements are subject to, but not
limited to, the risks indicated in the Company's filings with the Securities and
Exchange Commission.


         CONTACT: Dollar Tree Stores, Inc., Chesapeake
                  Eric Coble or Erica Robb, 757 / 321-5000
                  http://www.DollarTree.com