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                                                                    Exhibit 99.1
[ELDER-BEERMAN LOGO]
                                                                        NEWS
                                                                      RELEASE



      3155 El-Bee Rd. - Box 1448 - Dayton, OH 45401-1448 - 937-296-2700 -
                                FAX 937-296-4625



FOR IMMEDIATE RELEASE                     CONTACT:
                                          Gloria Siegler
                                          Manager, Investor Relations and
                                          Corporate Communications
                                          (937) 296-7339


                        ELDER-BEERMAN CHAIRMAN, PRESIDENT
                     AND CEO FREDERRICK J. MERSHAD TO RETIRE

DAYTON, OHIO, AUGUST 21, 2001 - Elder Beerman Stores Corp. (Nasdaq NM: EBSC)
chairman, president and chief executive officer, Frederick J. Mershad, notified
the company's Board of Directors of his intention to retire effective December
31, 2001. The Executive Committee of the corporation's Board of Directors has
commenced a process to select a successor. Mr. Mershad will assist in the search
process.

         Mr. Mershad, who has 36 years of experience in retail, has served as
chairman of the board and chief executive officer of Elder-Beerman since
December 1997. He came to Elder-Beerman as its president and chief executive
officer in January 1997 from the Proffitt's division of Saks, Inc., where he
served as its president and chief executive officer.

         Steven C. Mason, chairman of the Board's Executive Committee, stated,
"During Fred Mershad's tenure at Elder-Beerman he grew the chain from 48
department stores to its current 63 stores. He led the team that created the
company's concept stores in 1999 and presided over the development of the
company's new strategic plan. We will be sorry to see him go, and the Board
wishes him well."

         Mr. Mershad said, "I am privileged to have worked with the outstanding
team at Elder-Beerman. It is gratifying to see the progress made in
implementation of the company's strategic plan that emphasizes delivering
quality fashionable merchandise at value prices, maintaining tight expense
controls, and opening new concept stores.
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ELDER-BEERMAN CHAIRMAN, PRESIDENT AND CEO TO RETIRE . . . PAGE 2

         "The Board and I are confident that this strategic plan continues to be
right for Elder-Beerman. As we work to identify Elder-Beerman's new leader, the
company will aggressively move forward. We are opening three new concept stores
before the Christmas selling season, rolling out tools to help deliver our value
merchandising proposition to the customer and we are tightly controlling
expenses. Elder-Beerman is prepared to meet the retail industry's challenges and
reap its rewards through its resolve to understand its customers and meet their
needs."
         The nation's ninth largest independent department store chain, The
Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 63
stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin
and Pennsylvania, and has announced Fall 2001 openings of two new stores.
Elder-Beerman also operates two furniture galleries. For more information about
the company see Elder-Beerman's web site at www.elder-beerman.com.

Please note: This release may contain certain "forward-looking statements"
including predictions of future operating performance, events or developments
such as our future sales, profits, expenses, income and earnings per share. In
addition, words such as "expects," "anticipates," "intends," "plans,"
"believes," "hopes," and "estimates," and variations of such words and similar
expressions, are intended to identify forward-looking statements.

Because forward-looking statements are based on a number of beliefs, estimates
and assumptions by management that could ultimately prove inaccurate, there is
no assurance that forward-looking statements will prove to be accurate. Many
factors could materially affect our actual future operations and results,
including the following: the ability to open new stores on schedule, including
our new stores announced for 2001 in Kohler, WI, Alliance, OH and DuBois, PA;
increasing price and product competition; fluctuations in consumer demand and
confidence, especially during the Christmas shopping season and in light of
current general economic conditions, interest rates and the capital markets; the
availability and mix of inventory; fluctuations in costs and expenses; consumer
response to the company's new merchandising strategies, advertising, marketing
and promotional programs; the ability of the company to achieve its expense
cutting initiatives as it implements its strategic plan; the timing and
effectiveness of new store openings, particularly its new concept stores opened
in the Fall season of 2000 and Spring season of 2001 (Howell, MI; West Bend, WI;
Jasper, IN and Plover, WI) and the new concept stores to be opened in the Fall
season of 2001; the impact of electronic commerce; weather conditions that
affect consumer traffic in stores, especially during the Christmas season; the
continued availability and terms of financing; the outcome of pending and future
litigation; consumer debt levels; the impact of any new consumer bankruptcy
laws; inflation and interest rates and the condition of the capital markets.

Elder-Beerman undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.


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