Exhibit 99.1


ELDER-BEERMAN ANNOUNCES EXECUTION OF MERGER AGREEMENT FOR SALE OF THE COMPANY


      DAYTON, Ohio - June 26, 2003 - The Elder-Beerman Stores Corp.
(Nasdaq:EBSC) announced today that it has entered into a definitive merger
agreement providing for the sale of the company to Wright Holdings, Inc., a
company formed by Goldner Hawn Johnson & Morrison Incorporated. The merger
agreement provides that the shareholders of Elder-Beerman will receive $6.00 per
share in cash for their common shares.

      The purchase price represents a 104 % premium over the average closing
price of the company's common shares for the thirty days prior to May 16, 2003.
The company had announced on May 16, 2003 that it was entering into exclusive
negotiations relating to the sale of the company.

      Wright Holdings was formed to carry out the merger and is currently owned
solely by Marathon Fund Limited Partnership IV, a private investment fund
managed by Goldner Hawn. Wright Holdings has received written commitments from
the Marathon Fund and affiliates of Fleet Financial Group to fund the closing of
the merger transaction and provide working capital to support operations.
Completion of the merger is subject to the receipt by Wright Holdings of the
proceeds contemplated by these financing commitments.

      Elder Beerman's independent directors unanimously approved the merger
agreement and the merger, and has agreed to recommend its approval by company
shareholders. Nine of the company's ten directors are independent and not
employed by the company. RBC Capital Markets served as Elder-Beerman's financial
advisor in connection with the proposed merger and has rendered an opinion to
the company's board that, subject to the qualifications set forth therein and as
of the date the board approved the merger agreement, the cash consideration to
be paid Elder-Beerman shareholders was fair, from a financial point of view, to
the shareholders.

      After completion of the proposed merger, Elder-Beerman will continue to be
headquartered in Dayton, Ohio, and will operate as a private company. It is
expected that the current Elder-Beerman senior management team led by Byron
(Bud) Bergren, President and Chief Executive Officer, and Edward Tomechko,
Executive Vice President and Chief Financial Officer, will remain in place and
will have an opportunity to acquire an equity interest in Wright Holdings. It is
anticipated that immediately after the merger, current management of the company
will own 10% of Wright Holdings.

      Steven C. Mason, Chairman of the Company, stated that "We are enthusiastic
about the merger. It provides shareholders a liquidity event at prices
substantially in excess of prices at which Elder-Beerman has traded during the
last two and a half years prior to the announcement that the company was in
exclusive negotiations for the sale of the company. The merger price, I believe,
reflects the success of current management in its restructuring initiatives,
management of assets and execution of a sound strategy and the Board's success
in maximizing shareholder value."

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      Bud Bergren commented that "We have been successful in a difficult retail
operating environment in reducing debt and building a workable strategy for the
future. I am delighted that current shareholders will reap the benefits of our
efforts. At the same time, Elder-Beerman's current management welcomes the
challenge, in association with the company's new owners, to continue to improve
Elder-Beerman for our customers and employees. I am delighted that our
headquarters will remain in Dayton and that we can continue to execute our new
format store strategy which should provide additional opportunities for our
associates."

      Michael Sweeney, Managing Director of Goldner Hawn said, "It is a pleasure
to invest with Bud Bergren and his management team. We look forward to
supporting the growth and development of Elder-Beerman. This investment will
represent our fourth public-to-private transaction, an area in which we have
developed a particular interest." Sweeney is expected to serve as
Elder-Beerman's Chairman of the Board following completion of the merger.

      The transaction is subject to the satisfaction of customary closing
conditions, including receipt of the proceeds from the financings and the
approval by the holders of at least two-thirds of Elder-Beerman's outstanding
common shares.

      Shareholder approval will be solicited by the Company by means of a proxy
statement, which will be mailed to shareholders upon the completion of the
required Securities and Exchange Commission filing and review process.
Elder-Beerman expects to hold a special meeting of shareholders to vote on the
merger agreement in September of 2003. If Elder-Beerman's shareholders approve
the merger agreement and all of the other conditions to the merger are
satisfied, Elder-Beerman expects that the merger will be completed as soon as
possible after the special meeting of shareholders.

      Elder-Beerman expects to file shortly with the Securities and Exchange
Commission a Current Report on Form 8-K containing a copy of the merger
agreement.

      The nation's ninth largest independent department store chain,
Elder-Beerman is headquartered in Dayton, Ohio and operates 68 stores in Ohio,
West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and
Pennsylvania. In November 2003, Elder-Beerman expects to expand operations to a
ninth state with the opening of its Muscatine, Iowa store. For more information
about the company, see Elder-Beerman's website located at www.elder-beerman.com.

      Goldner Hawn Johnson & Morrison Incorporated is a Minneapolis-based
private equity investment firm which was founded in 1989. Since its
establishment, Goldner Hawn Johnson & Morrison has completed more than 20
acquisitions in a variety of industries with a total transaction value in excess
of U.S. $2 billion and currently manages a U.S. $200 million investment fund.


      ELDER-BEERMAN AND CERTAIN OF ITS DIRECTORS AND OFFICERS MAY BE DEEMED TO
BE PARTICIPANTS IN THE SOLICITATION OF PROXIES FOR THE SPECIAL MEETING OF
SHAREHOLDERS RELATING TO THE MERGER AGREEMENT. ELDER-BEERMAN WILL FILE WITH THE
SECURITIES AND EXCHANGE


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COMMISSION AND MAIL TO ITS SHAREHOLDERS A PROXY STATEMENT FOR THE SPECIAL
MEETING OF SHAREHOLDERS. THE PROXY STATEMENT WILL CONTAIN IMPORTANT INFORMATION
REGARDING THE PARTICIPANTS IN THE SOLICITATION AND OTHER IMPORTANT INFORMATION
ABOUT THE MERGER AGREEMENT AND THE PROPOSED MERGER. ELDER-BEERMAN WILL ALSO FILE
WITH THE SECURITIES AND EXCHANGE COMMISSION A TRANSACTION STATEMENT ON SCHEDULE
13E-3 RELATING TO THE MERGER AGREEMENT AND THE PROPOSED MERGER.

      SHAREHOLDERS OF ELDER-BEERMAN ARE ADVISED TO READ ELDER-BEERMAN'S PROXY
STATEMENT FOR THE SPECIAL MEETING OF SHAREHOLDERS WHEN IT BECOMES AVAILABLE
BECAUSE IT CONTAINS IMPORTANT INFORMATION. SHAREHOLDERS OF ELDER-BEERMAN MAY
OBTAIN, FREE OF CHARGE, WHEN THEY BECOME AVAILABLE COPIES OF ELDER-BEERMAN'S
PROXY STATEMENT AND OTHER DOCUMENTS FILED BY ELDER-BEERMAN WITH THE SECURITIES
AND EXCHANGE COMMISSION AT THE INTERNET WEBSITE MAINTAINED BY THE SECURITIES AND
EXCHANGE COMMISSION AT WWW.SEC.GOV. THESE DOCUMENTS MAY ALSO BE OBTAINED FREE OF
CHARGE BY CALLING INVESTOR RELATIONS AT ELDER-BEERMAN AT 937/296-7339.

      This press release contains certain statements regarding the proposed
transaction between Elder-Beerman and Wright Holdings, which are
"forward-looking" statements under the federal securities laws and involve risks
and uncertainties relating to the occurrence of future events. Certain factors
that could cause actual events not to occur as expressed in the forward-looking
statements include, but are not limited to, (i) the failure to receive the
necessary shareholder approval or anti-trust clearance and (ii) satisfaction of
various closing conditions contained in the definitive merger agreement,
including receipt by Wright Holdings of the proceeds contemplated under the
financing commitments. The Company assumes no obligation to update the
forward-looking information. Other risks and uncertainties concerning the
Company's performance are set forth in reports and documents filed by the
Company with the Securities and Exchange Commission from time to time. Please
use caution in placing reliance on forward-looking statements.

CONTACT:

The Elder-Beerman Stores Corp.
Edward Tomechko, 937/296-2683


Goldner Hawn Johnson & Morrison, Inc.
Michael T. Sweeney
Tel.:  612-338-5912


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