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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q

(MARK ONE)

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

                                       OR

     [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

                         Commission file number 1-11735


                              99 CENTS ONLY STORES
             (Exact name of registrant as specified in its charter)

             CALIFORNIA                                 95-2411605
     (State or other Jurisdiction          (I.R.S. Employer Identification No.)
   of Incorporation or Organization)

        4000 UNION PACIFIC AVENUE,
       CITY OF COMMERCE, CALIFORNIA                       90023
 (Address of Principal Executive Offices)               (zip code)



       Registrant's telephone number, including area code: (323) 980-8145

                                      NONE
        Former name, address and fiscal year, if change since last report


     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or  for  such shorter period that the
registrant  was  required to file such reports) and (2) has been subject to such
filing  requirements  for  the  last  90  days.  Yes   X        No
                                                     ----          ----
     Indicate  by  check mark whether the registrant is an accelerated filer (as
defined  in  Rule  12b-2  of  the  Exchange  Act).  Yes   X        No
                                                        ----          ----
     Indicate  the  number of shares outstanding of each of the issuer's classes
of  common  stock  as  of  the  latest  practicable  date.

     Common Stock, No Par Value, 70,604,287 Shares as of May 9, 2003
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                                        1



PART  I.  FINANCIAL  INFORMATION
ITEM 1. FINANCIAL STATEMENTS

                              99 CENTS ONLY STORES
                                 BALANCE SHEETS
                    (Amounts In Thousands, Except Share Data)
                                  (UNAUDITED)

                                     ASSETS

                                                               MARCH 31,    DECEMBER 31,
                                                                 2003           2002
                                                              -----------  --------------
                                                                      
CURRENT ASSETS:
  Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $      289   $       7,985
  Short-term investments. . . . . . . . . . . . . . . . . . .     140,429         146,857
  Accounts receivable, net of allowance for doubtful accounts
    of $143 and $149 as of March 31, 2003 and December 31,
    2002, respectively  . . . . . . . . . . . . . . . . . . .       2,670           2,753
  Due from shareholder  . . . . . . . . . . . . . . . . . . .         735           1,232
  Inventories . . . . . . . . . . . . . . . . . . . . . . . .      86,523          83,176
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . .       2,630           2,869
                                                               -----------  --------------
    Total current assets. . . . . . . . . . . . . . . . . . .     233,276         244,872
PROPERTY AND EQUIPMENT, at cost:
  Land. . . . . . . . . . . . . . . . . . . . . . . . . . . .      31,486          26,779
  Building and improvement. . . . . . . . . . . . . . . . . .      49,499          29,216
  Leasehold improvements. . . . . . . . . . . . . . . . . . .      73,778          70,887
  Fixtures and equipment. . . . . . . . . . . . . . . . . . .      45,204          42,018
  Transportation equipment. . . . . . . . . . . . . . . . . .       3,707           3,045
  Construction in progress. . . . . . . . . . . . . . . . . .      17,629          14,105
                                                               -----------  --------------
                                                                  221,303         186,050
  Less-Accumulated depreciation and amortization. . . . . . .     (63,492)        (58,490)
                                                               -----------  --------------
                                                                  157,811         127,560

OTHER ASSETS:
  Deferred income taxes . . . . . . . . . . . . . . . . . . .      19,078          19,078
  Long term investments in marketable securities. . . . . . .      34,217          37,223
  Deposits. . . . . . . . . . . . . . . . . . . . . . . . . .         446             446
  Long term investments in partnerships . . . . . . . . . . .       4,523           4,565
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . .       6,801           6,166
                                                               -----------  --------------
                                                                   65,065          67,478
                                                               -----------  --------------
                                                               $  456,152   $     439,910
                                                               ===========  ==============



  The accompanying notes are an integral part of these consolidated financial
                                   statement.


                                        2



                               99 CENTS ONLY STORES
                                   BALANCE SHEETS
                      (Amounts In Thousands, Except Share Data)
                                     (UNAUDITED)

                         LIABILITIES AND SHAREHOLDERS' EQUITY


                                                             MARCH 31,   DECEMBER 31,
                                                               2003         2002
                                                            ----------  -------------
                                                                  
CURRENT LIABILITIES:
  Current portion of capital lease obligation. . . . . . .  $       40  $          40
  Accounts payable . . . . . . . . . . . . . . . . . . . .      13,381         16,946
  Accrued expenses:
   Payroll and payroll-related . . . . . . . . . . . . . .       3,337          3,652
   Sales tax . . . . . . . . . . . . . . . . . . . . . . .       3,181          4,329
   Other . . . . . . . . . . . . . . . . . . . . . . . . .       3,018          2,176
  Worker's compensation. . . . . . . . . . . . . . . . . .       8,034          7,725
  Income taxes payable . . . . . . . . . . . . . . . . . .       6,907          3,518
                                                            ----------  -------------
    Total current liabilities. . . . . . . . . . . . . . .      37,898         38,386
                                                            ----------  -------------

LONG-TERM LIABILITIES:
  Deferred Compensation. . . . . . . . . . . . . . . . . .       1,220          1,102
  Deferred rent. . . . . . . . . . . . . . . . . . . . . .       2,270          2,210
  Capitalized lease obligation . . . . . . . . . . . . . .       1,586          1,597
                                                            ----------  -------------
    Total Long-term liabilities. . . . . . . . . . . . . .       5,076          4,909
                                                            ----------  -------------

COMMITMENTS AND CONTINGENCIES: . . . . . . . . . . . . . .           -              -

SHAREHOLDERS' EQUITY:
  Preferred stock, no par value
    Authorized-1,000,000 shares
    Issued and outstanding-none. . . . . . . . . . . . . .           -              -
  Common stock, no par value
    Authorized-100,000,000 shares
    Issued and outstanding 70,563,383 at March 31, 2003 and
      70,369,178 at December 31, 2002. . . . . . . . . . .     176,105        174,152
 Retained earnings . . . . . . . . . . . . . . . . . . . .     237,073        222,463
                                                            ----------  -------------
                                                               413,178        396,615
                                                            ----------  -------------
                                                            $  456,152  $     439,910
                                                            ==========  =============



  The accompanying notes are an integral part of these consolidated financial
                                   statements


                                        3



                                     99 CENTS ONLY STORES
                                     STATEMENTS OF INCOME
                    THREE MONTHS ENDED MARCH 31, 2003 AND MARCH 31, 2002
                         (Amounts In Thousands, Except Per Share Data)
                                          (Unaudited)

                                                                       MARCH 31,
                                                                    2003       2002
                                                                  ---------  ---------
                                                                       
NET SALES:
  99 Cents Only Stores . . . . . . . . . . . . . . . . . . . . .  $184,713   $149,647
  Bargain Wholesale (Includes sales to an affiliate of $1,803 in
    2002) . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11,710     13,456
                                                                  ---------  ---------
                                                                   196,423    163,103
COST OF SALES. . . . . . . . . . . . . . . . . . . . . . . . . .   117,025     98,861
                                                                  ---------  ---------
  Gross profit. . . . . . . . . . . . . . . . . . . . . . . . .     79,398     64,242

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
  Operating expenses. . . . . . . . . . . . . . . . . . . . . . .   51,349     40,982
  Depreciation and amortization . . . . . . . . . . . . . . . . .    5,134      3,940
                                                                  ---------  ---------
                                                                    56,483     44,922
  Operating income. . . . . . . . . . . . . . . . . . . . . . . .   22,915     19,320
                                                                  ---------  ---------
OTHER (INCOME) EXPENSE:
  Interest income . . . . . . . . . . . . . . . . . . . . . . . .     (866)      (757)
  Interest expense. . . . . . . . . . . . . . . . . . . . . . . .       32         32
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     (360)      (360)
                                                                  ---------  ---------
                                                                    (1,194)    (1,085)
  Income before provision for income taxes. . . . . . . . . . . .   24,109     20,405
PROVISION FOR INCOME TAXES . . . . . . . . . . . . . . . . . . .     9,500      7,935
                                                                  ---------  ---------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 14,609   $ 12,470
                                                                  =========  =========
EARNINGS PER COMMON SHARE:
  Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $   0.21   $   0.18
  Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . $   0.20   $   0.18
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
  Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   70,469     69,558
  Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . .   71,536     70,925



  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                        4



                                         99 CENTS ONLY STORES
                                       STATEMENTS OF CASH FLOWS
                               THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                         (Amounts in Thousands)
                                              (Unaudited)


                                                                                        MARCH 31,
                                                                                     2003       2002
                                                                                   ----------  ---------
                                                                                        
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 14,609   $ 12,470
  Adjustment to reconcile net income to net cash provided by operating activities:
    Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . .     5,134      3,940
    Tax Benefit from exercise of non-qualified
      employee stock options . . . . . . . . . . . . . . . . . . . . . . . . . . .       847        406
  Changes in assets and liabilities associated with operating activities:
    Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        83     (1,084)
    Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (3,346)      (709)
    Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (273)      (954)
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (3,565)    (1,020)
    Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (622)     2,978
    Worker's compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .       310        472
    Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3,389      7,502
    Deferred rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        60         29
    Due from shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . .       497       (735)
                                                                                   ----------  ---------
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . .     17,123     23,295
                                                                                   ----------  ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . . .   (35,385)    (9,322)
  Sales (purchases) of short-term and long-term investments. . . . . . . . . . . .     9,434     (7,219)
  Investment in Partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . .        36          -
                                                                                   ----------  ---------
Net cash used in investing activities  . . . . . . . . . . . . . . . . . . . . . .   (25,915)   (16,541)
                                                                                   ----------  ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments of capital lease obligation . . . . . . . . . . . . . . . . . . . . . .       (11)        (9)
  Proceeds from exercise of stock options. . . . . . . . . . . . . . . . . . . . .     1,107      1,492
                                                                                   ----------  ---------
Net cash provided by financing activities  . . . . . . . . . . . . . . . . . . . .     1,096      1,483
                                                                                   ----------  ---------
NET (DECREASE) INCREASE IN CASH  . . . . . . . . . . . . . . . . . . . . . . . . .    (7,696)     8,237
CASH, beginning of period  . . . . . . . . . . . . . . . . . . . . . . . . . . . .     7,985        232
                                                                                   ----------  ---------
CASH, end of period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    289   $  8,469
                                                                                   ==========  =========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . .         32         32
                                                                                   ----------  ---------



  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                        5

                              99 CENTS ONLY STORES
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


1.  BASIS OF PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared  in  conformity  with  accounting  principles generally accepted in the
United  States of America. However, certain information and footnote disclosures
normally included in financial statements prepared in conformity with accounting
principles  generally accepted in the United States of America have been omitted
or  condensed  pursuant  to  the  rules  and  regulations  of the Securities and
Exchange  Commission  (SEC). These statements should be read in conjunction with
the  Company's  December 31, 2002 audited financial statements and notes thereto
included  in  the  Company's  Form  10-K filed March 31, 2003. In the opinion of
management,  these  interim  consolidated  financial  statements  reflect  all
adjustments  (consisting  of  normal recurring adjustments) necessary for a fair
statement  of  the consolidated financial position and results of operations for
each of the periods presented. The results of operations and cash flows for such
periods  are  not  necessarily indicative of results to be expected for the full
year.

CONCENTRATION  OF  OPERATIONS

     All  but  20  of  our  99  Cents Only Stores are located in California. The
Company  operates nine stores in Las Vegas, Nevada and 11 stores in Arizona. The
Company expects that it will continue to open additional stores in California as
well as in Nevada and Arizona. The Company also expects that it will open stores
in  Texas  in  2003.  Consequently,  the  Company's  results  of  operations and
financial condition are substantially dependent upon general economic trends and
various  environmental  factors  in  these  regions.

2.  EARNINGS  PER  COMMON  SHARE

     "Basic"  earnings  per  share  is  computed  by  dividing net income by the
weighted  average  number of shares outstanding for the year. "Diluted" earnings
per  share  is  computed  by  dividing  net  income by the total of the weighted
average  number  of  shares  outstanding plus the dilutive effect of outstanding
stock  options  (applying  the  treasury  stock  method).

     A reconciliation of the basic weighted average number of shares outstanding
and  the  diluted  weighted  average  number of shares outstanding for the three
months  in  the  period  ended  March  31,  2003  and  2002  follows:

                                                  3 MONTHS ENDED
                                                  --------------
                                                     MARCH 31,
                                                     ---------
                                                   2003    2002
                                                  ------  ------
Weighted average number of common shares
  outstanding-Basic. . . . . . . . . . . . . .    70,469  69,558
Dilutive effect of outstanding stock options       1,067   1,367
                                                  ------  ------
Weighted average number of common shares
  outstanding-Diluted. . . . . . . . . . . . .    71,536  70,925
                                                  ======  ======


                                        6

     The  Company  has  elected  to  continue  to  measure  compensation  costs
associated  with its stock option plan under APB Opinion No. 25, "Accounting for
Stock  Issued to Employees" and accordingly, under SFAS No. 123, had the Company
applied the fair value based method of accounting, which is not required, to all
grants  of  stock  options,  under SFAS No. 123, the Company would have recorded
additional  compensation expense and pro forma net income and earnings per share
amounts  as  follows  for  the three month period ended March 31, 2003 and 2002:


                                          (Amounts in thousands, except for
                                                   per share data)
                                           3 MONTHS ENDED   3 MONTHS ENDED
                                                 MARCH 31,       MARCH 31,
                                                     2003            2002
                                                     ----            ----
         Net income, as reported . . . . . . . .  $14,609         $12,470
         Additional compensation expense . . . .      267           1,134
                                                  -------         -------
         Pro forma net income  . . . . . . . . .  $14,342         $11,336
                                                  =======         =======
         Earnings per share:
         Basic-as reported . . . . . . . . . . .  $  0.21         $  0.18
         Basic-pro forma . . . . . . . . . . . .  $  0.20         $  0.16
         Diluted-as reported . . . . . . . . . .  $  0.20         $  0.18
         Diluted-pro forma . . . . . . . . . . .  $  0.20         $  0.16

These  pro  forma  amounts  were determined by estimating the fair value of each
option  on  its grant date using the Black-Scholes option-pricing model with the
following  assumptions:

                                          3 MONTHS ENDED   3 MONTHS ENDED
                                                MARCH 31 ,      MARCH 31,
                                                     2003            2002
                                                     ----            ----
         Risk free interest rate . . . . . . . .    1.90%           1.90%
         Expected life . . . . . . . . . . . . . 10 Years        10 Years
         Expected stock price volatility . . . .      46%             51%
         Expected dividend yield . . . . . . . .     None             None


                                        7

3.  SHORT-TERM  INVESTMENTS

     Investments  in debt and equity securities are recorded as required by SFAS
No.  115,  "Accounting for Certain Investments in Debt and Equity Securities" as
trading  securities.  The  Company's  investments  are  comprised  primarily  of
investment  grade  federal and municipal bonds and commercial paper. As of March
31,  2003  and December 31, 2002, the fair value of investments approximated the
carrying  values  and  were  invested  as  follows  (amounts  in  thousands):



                                   (UNAUDITED)
                                     MATURITY                        MATURITY
                                     --------                        --------

                       MARCH 31,  WITHIN 1    1 YEAR OR   DEC. 31,   WITHIN 1   1 YEAR OR
                       ---------  ----------  ---------  ---------  ----------  ---------
                         2003        YEAR       MORE       2002        YEAR       MORE
                       ---------  ----------  ---------  ---------  ----------  ---------
                                                              
Municipal Bonds . . .  $ 140,135  $  124,708  $  15,427  $ 119,798  $   99,180  $  20,618
Corporate Securities.     18,729       8,560     10,169     40,373      40,373          -
Commercial Paper. . .     15,782       7,161      8,621     23,909       7,304     16,605
                       ---------  ----------  ---------  ---------  ----------  ---------
                       $ 174,646  $  140,429  $  34,217  $ 184,080  $  146,857  $  37,223
                       =========  ==========  =========  =========  ==========  =========


4.  NEW  AUTHORITATIVE  PRONOUNCEMENTS


     In  December,  2002,  the  FASB  issued  SFAS  No.  148,  "Accounting  for
Stock-Based Compensation -- Transition and Disclosure" (SFAS 148) - an amendment
of SFAS 123 "Accounting for Stock Based Compensation".  The standard is intended
to  encourage the adoption of the accounting provisions of SFAS 123.  It is also
intended to address constituent concerns about the so-called "ramp-up effect" on
net  income  that  resulted  from  the  application  of  the transition guidance
originally required by SFAS 123. The transition and annual disclosure provisions
of SFAS 148 are effective for fiscal years ending after December 15, 2002. Under
the  provisions  of  SFAS  148,  companies  that  choose to adopt the accounting
provisions  of  SFAS  123  will  be  permitted  to  select from three transition
methods.  The  Company  continues to recognize stock based employee compensation
under  APB  Opinion  No.  25.

5.  RELATED-PARTY  TRANSACTIONS

     Effective  September 30, 2000, the Company sold its discontinued operation,
Universal International, Inc.("Universal"), to a Company owned 100% by David and
Sherry  Gold, both significant shareholders of 99 Cents Only Stores. Mr. Gold is
also  the  Chief  Executive  Officer  and a director. Subsequent to December 31,
2002,  Universal  ceased operations and closed its business. It is expected that
Universal  will  terminate  its  service agreement and lease arrangement with 99
Cents  Only Stores some time during 2003. In the first quarter of 2003 and 2002,
the Company recorded $0.4 million in management fees under the service agreement
and  $0.4  million  in  lease  payments  under  the  lease  agreement.

6.  OPERATING  SEGMENTS

     The  Company  has  two  business  segments, retail operations and wholesale
distribution.  The  retail  segment includes 99 Cents Only Stores retail stores.
The  majority  of the product offerings include recognized brand-name consumable
merchandise,  regularly  available for reorder. Bargain Wholesale sells the same
merchandise at prices generally below normal wholesale levels to local, regional
and  national  distributors  and  exporters.

     The  accounting  policies  of  the segments are described in the summary of
significant  accounting  policies  noted  in the Company's Annual Report on Form
10-K  for  the  year  ended  December  31,  2002.  The Company evaluates segment
performance  based on the net sales and gross profit of each segment. Management
does  not  track  segment  data  or  evaluate  segment performance on additional
financial  information.  As  such,  there are no separately identifiable segment
assets nor is there any separately identifiable statements of income data (below
gross  profit)  to  be  disclosed.

      The  Company  accounts  for  inter-segment  transfer  at  cost through its
inventory  accounts.

     At March 31, 2003, the Company had no customers representing more than 4.5%
of  Bargain  Wholesale's net sales. Substantially all of the Company's net sales
were  to  customers  located  in  the  United  States.



     Reportable  segment information for the three month periods ended March 31,
2003  and  2002  follows  (amounts  in  thousands):


             THREE MONTHS ENDED
                 MARCH 31             RETAIL      WHOLESALE        TOTAL
                                      ------      ---------        -----
             2003
             ----
             Net sales. . . . .    $  184,713    $   11,710    $  196,423
             Gross margin . . .        77,084         2,314        79,398

             2002
             ----
             Net sales. . . . .    $  149,647    $   13,456    $  163,103
             Gross margin . . .        61,648         2,594        64,242


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
              OF  OPERATIONS

GENERAL

     99 Cents Only Stores (the "Company") is a leading deep-discount retailer of
primarily name-brand, consumable general merchandise. The Company's stores offer
a  wide  assortment  of  regularly  available  consumer goods as well as a broad
variety  of  first-quality, close-out merchandise. The majority of the Company's
product offerings were comprised of recognizable name-brand merchandise and were
regularly  available  for  reorder.

     99  Cents  Only  Stores  has  increased its net sales, operating income and
income  from  continuing  operations in each of the last five years. In 2002, it
had  net  sales  of $713.9 million, operating income of $90.5 million and income
from  continuing  operations  of  $59.0 million, representing a 23.5%, 22.4% and
21.7%  increase over 2001, respectively. From 1998 through 2002, the Company had
a  compound  annual  growth  rate in net sales, operating income and income from
continuing  operations of 25.3%, 23.7% and 25.5%, respectively. During the three
years  in  the  period ending December 31, 2002, average net sales per estimated
saleable  square  foot  (computed  on 99 Cents Only Stores open for a full year)
declined  from $319 per square foot to $309 per square foot. This trend reflects
the  Company's  determination  to  target  larger  locations  for  new  store
development.  Existing  stores  average  approximately 20,500 gross square feet.
From  January  1,  2000 through March 31, 2003, the Company opened 77 new stores
(including  one  relocation  in  2001)  that  average approximately 22,500 gross
square  feet.  The  Company currently targets new store locations between 18,000
and  28,000  gross  square  feet.  Although  it is the Company's experience that
larger  stores  generally  have  lower  average  net  sales per square foot than
smaller  stores,  larger  stores  generally  achieve higher average annual store
revenues  and  operating  income.


CRITICAL  ACCOUNTING  POLICIES  AND  ESTIMATES

The  preparation  of  financial statements requires management to make estimates
and assumptions that affect reported earnings. The estimates and assumptions are
evaluated  on  an  on-going  basis and are based on historical experience and on
other factors that management believes are reasonable. Estimates and assumptions
include, but are not limited to, the areas of customer receivables, inventories,
investments,  income  taxes,  self-insurance  reserves,  and  commitments  and
contingencies.

The  Company believes that the following represent the areas where more critical
estimates  and  assumptions  are  used  in  the  preparation  of  the  financial
statements:

INVESTMENTS:  The Company records its investments, which are comprised primarily
of  investment  grade  federal and municipal bonds and commercial paper, at fair
value.  The  Company  generally holds investments until maturity. Any premium or
discount  recognized  in  connection  with  the  purchase  of  an  investment is
amortized  over  the  term  of  the  investment.

LONG-LIVED  ASSET IMPAIRMENTS: The Company records impairments when the carrying
amounts of long-lived assets are determined not to be recoverable. Impairment is
assessed  and  measured  by  an estimate of future cash flows expected to result
from  the  use  of  the  asset  and  its eventual disposition. Changes in market


                                        9

conditions  can  impact estimated future cash flows from use of these assets and
impairments  charges  may  be  required  should  such  changes  occur.

SELF-INSURANCE  RESERVES:  The  Company  is self-insured in relation to worker's
compensation  claims.  The  Company  provides  for losses of estimated known and
incurred  but  not  reported  insurance  claims.  These  estimates  are based on
reported claims and actuarial valuations. Should a greater amount of claims or a
higher  cost  of  claims occur compared to what was estimated, reserves recorded
may  not  be  sufficient  and  additional  expense  could  be  incurred.


UNIVERSAL  INTERNATIONAL  (DISCONTINUED  OPERATIONS)

     In  conjunction with a sale of Universal in 2000, the Company established a
service  agreement  and  lease  agreement  with certain shareholders. At each of
March  31,  2003  and 2002, the Company recorded $0.4 million in management fees
under  the  service agreement and $0.4 million in lease payments under the lease
agreement.  In  2002, the Company received $1.5 million in management fees under
the  service  agreement  from Universal and $1.4 million in lease payments under
the  lease  agreement. It also purchased $0.4 million of closeout inventory from
Universal. Resolution of Universal post closing business issues has required the
extension  of  the  service  agreement  and lease arrangement with 99 Cents Only
Stores  to  a  date  ending  some  time  in  2003.

RESULTS  OF  OPERATIONS

THREE  MONTHS ENDED MARCH 31, 2003 COMPARED TO THREE MONTHS ENDED MARCH 31, 2002

NET SALES: Net sales increased $33.3 million, or 20.4%, to $196.4 million in the
2003 period from $163.1 million in the 2002 period. Retail sales increased $35.1
million  to  $184.7  million  in the 2003 period from $149.6 million in the 2002
period.  The  retail  net  sales  increase was primarily attributable to the net
effect  of  three  new stores opened in the first three months of 2003, the full
quarter effect of 28 net new stores opened in 2002 and the 4.3% increase in same
store  sales.  Bargain Wholesale net sales were $11.7 million in the 2003 period
and were $13.5 million in the three months ended March 31, 2002. This decline in
the  wholesale  business  results  from  generally  weaker  sales  and  economic
conditions  for  the  Company's  small  regional  retail  customers.

GROSS  PROFIT:  Gross profit increased approximately $15.2 million, or 23.6%, to
$79.4  million  in  the  2003  period from $64.2 million in the 2002 period. The
increase  in  gross profit was primarily due to higher net retail sales. Overall
gross profit margin was 40.4% in 2003 versus 39.4% in 2002. Gross margin percent
was  higher primarily as a result of improved product sales mix and the increase
in  the  retail  sales  as  a  percentage  of  the  total  sales.

SELLING,  GENERAL AND ADMINISTRATIVE: SG&A increased by $11.6 million, or 25.7%,
to  $56.5 million in the 2003 period from $44.9 million in the 2002 period. As a
percentage  of net sales, total SG&A increased to 28.7% from 27.5% in 2002. This
increase  is primarily related to the additional costs associated with the start
up  of  the  Company's  new  distribution  center  in  Houston, Texas along with
increases  in  depreciation,  freight  and  worker's  compensation  costs.

OPERATING INCOME: As a result of the items discussed above, operating income was
$22.9  million  in 2003, an increase of $3.6 million, or 18.6%. Operating margin
was  11.7%  in  2003  versus  11.9%  in  2002.

OTHER  INCOME  (EXPENSE): Other income (expense) includes the interest income on
the  Company's  marketable  securities  and  interest  expense  on the Company's
capitalized leases. Interest income was $0.9 million in 2003 and $0.8 million in
2002.  This  difference in interest income results from interest rate variations
and  a  greater amount of marketable securities in 2003. The Company had no bank
debt  during  the  three months ended March 31, 2003 or 2002. At March 31, 2003,
the  Company  held $140.4 million in short-term investments and $34.2 million in
long-term  investments.  The  Company's short-term and long-term investments are
comprised  primarily  of  investment  grade  federal  and  municipal  bonds  and
commercial  paper,  all  with short-term maturities. The Company generally holds
investments  until  maturity. Also included in 2003 and 2002 is $0.4 million and
$0.4  million  respectively,  of  income  under a lease agreement with Universal
International,  Inc.,  for  a  distribution  facility.


                                       10

PROVISION  FOR  INCOME TAXES: The provision for income taxes was $9.5 million in
the  2003  period  compared  to  $7.9 million in 2002. The effective rate of the
provision  for  income  taxes  was  approximately  39.4% in 2003 and 38.9% 2002.

NET  INCOME: As a result of the items discussed above, net income increased $2.1
million  to  $14.6  million  in  2003 from $12.5 million in the 2002 period. Net
income  as  a  percentage  of  sales  was  7.5%  in  2003  and  7.7%  in  2002.

LIQUIDITY AND CAPITAL RESOURCES

     Since  inception,  the  Company  has funded its operations principally from
cash  provided by operations, and has not generally relied upon external sources
of financing. The Company's capital requirements result primarily from purchases
of  inventory,  expenditures  related  to new store openings and working capital
requirements  for  new  and  existing  stores.  The  Company  takes advantage of
close-out  and other special-situation opportunities, which frequently result in
large  volume  purchases,  and  as  a consequence, its cash requirements are not
constant  or  predictable  during the year and can be affected by the timing and
size  of  its  purchases.

     Net  cash  provided by operations during the first quarter of 2003 and 2002
was $17.1 and $23.3 million, respectively, consisting primarily of $20.6 million
and  $16.8  million  of  net  income  adjusted  for non-cash items. In the first
quarter  of  2003,  the  Company  used $3.5 million in working capital and other
activities and in the first quarter of 2002 the Company provided $6.5 million in
working capital and other activities. Net cash used in working capital and other
activities primarily reflects the increases in inventories in the amount of $3.3
million  and  $0.7  million  in  the  first quarter 2003 and 2002, respectively.

     Net  cash used in investing activities during the first quarter of 2003 and
2002  was  $25.9  and  $16.5  million.  Net  cash  used  in investing activities
represents  the  following: In the first quarter of 2003, the Company used $35.4
million for the purchase of property and equipment (including $23.1 million used
for  the  purchase  of  a  new  distribution center in Houston, Texas), and $9.4
million  for  the purchase of investments in marketable securities. In the first
quarter  of 2002, the Company used $9.3 million for the purchase of property and
equipment  and  used  $7.2  million  for  the  purchase  of  investments.

     Net  cash provided by financing activities during the first quarter of 2003
and  2002  was $1.1 million and $1.5 million, which represents the proceeds from
the  exercise  of non-qualified stock options. The Company does not maintain any
credit  facilities  with any bank. However, the Company maintains a cash deposit
of  approximately  $6.7  million  for  self-insured  worker's  compensation.

     The  Company  opened three stores in the first quarter of 2003 and plans to
open  35 additional new 99 Cents Only Stores in 2003. The average investment per
new  store opened in 2002, including leasehold improvements, furniture, fixtures
and  equipment,  inventory and pre-opening expenses, was approximately $660,000.
The  Company's  cash  needs  for  new  store  openings  are  expected  to  total
approximately $37.0 million in 2003 including acquired properties. The Company's
total  planned  expenditures  in  2003  for  additions to fixtures and leasehold
improvements  of existing stores as well as for distribution, systems, expansion
and  replacement  will be approximately $10.0 million. The Company believes that
its  total  capital  expenditure  requirements  including new store openings and
$23.1  million  purchase  of  the Houston distribution facility will approximate
$70.1 million in 2003. The Company intends to fund its liquidity requirements in
2003  out of net cash provided by operations, short-term investments and cash on
hand.  As  previously  indicated,  the Company announced on February 4, 2003 the
purchase  of  a  741,000  square  foot  distribution center in Houston, Texas to
service  its  planned  store expansion in Texas in 2003 and beyond. The facility
was  acquired  for $23.1 million in cash and is fully racked including a pick to
belt  conveyor system. It also contains built in refrigerated and frozen storage
space.  The  Company has announced that it plans to open approximately 15 of its
planned  total  38  new  store  additions in 2003 in Houston and the surrounding
area.

CONTRACTUAL OBLIGATIONS

     The following table summarizes our consolidated contractual obligations (in
thousands).  This  table  represents  the  full  year  expected  payments.



Contractual Obligations       2003     2004     2005     2006     2007    Thereafter   Total
                             -------  -------  -------  -------  -------  ----------  --------
                                                                 
Capital Lease Obligations .  $   169  $   169  $   169  $   169  $   169  $ 1,525     $  2,370
Operating Lease Obligations   22,537   22,200   19,696   16,924   13,143   44,349      138,849
                             -------  -------  -------  -------  -------  ----------  --------
                             $22,706  $22,369  $19,865  $17,093  $13,312  $45,874     $141,219



                                       11

LEASE COMMITMENTS

     The  Company  leases  various  facilities under operating leases except for
two,  which  were  classified as capital leases and will expire at various dates
through  2018.  Some  of  the  lease  agreements  contain renewal options and/or
provide  for scheduled increases or increases based on the Consumer Price Index.
Total  minimum  lease  payments  under each of these lease agreements, including
scheduled increases, are charged to operations on a straight-line basis over the
life  of  each  respective lease. Certain leases require the payment of property
taxes,  maintenance  and insurance. Rental expense charged to operations for the
three  month  period  ended  March  31, 2003 and 2002 were $7.3 million and $5.5
million,  respectively.  The  Company  typically  seeks  leases  with an initial
five-year  to ten-year term and with one or more five-year renewal options. Most
leases  have  renewal  options  ranging  from  three  to  ten  years.

RISK  FACTORS

INFLATION MAY AFFECT OUR ABILITY TO SELL MERCHANDISE AT THE 99 CENTS PRICE POINT

     Our  ability  to provide quality merchandise at the 99 Cents price point is
subject  to  certain  economic  factors, which are beyond our control, including
inflation.  Inflation  could  have a material adverse effect on our business and
results  of  operations, especially given the constraints on our ability to pass
on  any  incremental  costs  due to price increases or other factors. We believe
that  we  will  be  able  to  respond to ordinary price increases resulting from
inflationary pressures by adjusting the number of items sold at the single price
point  (e.g., two items for 99 Cents instead of three items for 99 Cents) and by
changing  our  selection  of  merchandise.  Nevertheless,  a  sustained trend of
significantly  increased  inflationary  pressure could require us to abandon our
single  price  point  of  99 Cents per item, which could have a material adverse
effect on our business and results of operations. See also "We are vulnerable to
uncertain  economic  factors,  changes  in  the  minimum  wage  and  worker's
compensation"  for  a  discussion  of additional risks attendant to inflationary
conditions.

WE  DEPEND  ON  NEW  STORE  OPENINGS  FOR  FUTURE  GROWTH

     Our operating results depend largely on our ability to open and operate new
stores  successfully  and  to  manage  a larger business profitably. In 2001 and
2002,  we  opened 26 and 28 99 Cents Only Stores, respectively (25 and 28 stores
respectively,  net  of  relocated stores). As of March 28, 2003, we opened three
stores  and  expect to open 35 additional stores during the remainder of 2003 to
meet  a growth rate of 25%. We also plan to grow retail square footage at a rate
of  approximately  25% per year. Our strategy depends on many factors, including
our ability to identify suitable markets and sites for our new stores, negotiate
leases  with  acceptable  terms,  refurbish  stores,  upgrade  our financial and
management  information  systems and controls and manage our operating expenses.
In  addition,  we  must  be able to continue to hire, train, motivate and retain
competent  managers  and  store  personnel. Many of these factors are beyond our
control.  As  a result, we cannot assure you that we will be able to achieve our
expansion  goals.  Any  failure by us to achieve our expansion goals on a timely
basis,  obtain  acceptance  in  markets in which we currently have limited or no
presence,  attract  and  retain  management  and  other  qualified  personnel,
appropriately  upgrade  our  financial  and  management  information systems and
control or manage operating expenses could adversely affect our future operating
results  and  our  ability  to  execute  our  business  strategy.

     We  also  cannot  assure you that we will improve our results of operations
when  we  open new stores. A variety of factors, including store location, store
size,  rental  terms,  the  level  of  store  sales  and  the  level  of initial
advertising  influence if and when a store becomes profitable. Assuming that our
planned  expansion  occurs  as  anticipated,  our  store  base  will  include  a
relatively  high proportion of stores with relatively short operating histories.
We  cannot  assure  you  that our new stores will achieve the sales per saleable
square foot and store-level operating margins currently achieved at our existing
stores.  If our new stores on average fail to achieve these results, our planned
expansion could produce a decrease in our overall sales per saleable square foot
and  store-level  operating  margins.  Increases in the level of advertising and
pre-opening  expenses  associated  with  the  opening  of  new stores could also
contribute  to  a decrease in our operating margins. Finally, the opening of new
stores  in  existing markets has in the past and may in the future reduce retail
sales of existing stores in those markets, negatively affecting comparable store
sales.


                                       12

OUR  OPERATIONS  ARE  CONCENTRATED  IN  CALIFORNIA

     Currently,  all  but  20  of  our  99  Cents  Only  Stores  are  located in
California.  We  operate  nine  stores  in  Las  Vegas,  Nevada and 11 stores in
Arizona.  We  expect  that  we  will  continue  to  open  additional  stores  in
California, as well as in Nevada, Arizona and Texas. Accordingly, our results of
operations  and financial condition largely depend upon trends in the California
economy.  If  retail spending declines due to economic slow-down or recession in
California,  we  cannot  assure  you  that our operations will not be negatively
impacted.

     In addition, California historically has been vulnerable to certain natural
disasters  and  other  risks,  such  as  earthquakes,  fires,  floods  and civil
disturbance.  At  times,  these  events  have disrupted the local economy. These
events  could  also  pose  physical  risks  to  our  properties.

WE COULD EXPERIENCE DISRUPTIONS IN RECEIVING AND DISTRIBUTION

     Our  success  depends upon whether our receiving and shipment schedules are
organized  and  well  managed.  As  we  continue to grow, we may face unexpected
demands  on  our  warehouse  operations,  as  well  as unexpected demands on our
transportation  network,  which could cause delays in delivery of merchandise to
or  from  our  warehouses to our stores. A fire, earthquake or other disaster at
our  warehouses  could  hurt  our  business,  financial condition and results of
operations,  particularly  because much of our merchandise consists of closeouts
and  other  irreplaceable  products.  Although we maintain standard property and
business  interruption  insurance,  we  do  not have earthquake insurance on our
properties.  Although  we try to limit our risk of exposure to potential product
liability  claims,  we  do  not  know  if  the limitations in our agreements are
enforceable.  We maintain insurance covering damage from use of our products. If
any  product  liability claim is successful and large enough, our business could
suffer.

WE  DEPEND  UPON  OUR  RELATIONSHIPS  WITH OUR SUPPLIERS AND THE AVAILABILITY OF
CLOSE-OUT  AND  SPECIAL-SITUATION  MERCHANDISE

     Our  success  depends  in  large part on our ability to locate and purchase
quality  close-out  and special-situation merchandise at attractive prices. This
helps  us  maintain  a  mix  of name-brand and other merchandise at the 99 Cents
price  point.  We  cannot  be  certain that such merchandise will continue to be
available  in  the  future.  Further,  we  may  not be able to find and purchase
merchandise in quantities necessary to accommodate our growth. Additionally, our
suppliers  sometimes  restrict  the  advertising,  promotion  and  method  of
distribution  of  their merchandise. These restrictions in turn may make it more
difficult  for  us  to  quickly sell these items from our inventory. Although we
believe  our relationships with our suppliers are good, we do not have long-term
agreements  with any supplier. As a result, we must continuously seek out buying
opportunities  from  our existing suppliers and from new sources. We compete for
these  opportunities  with  other  wholesalers  and  retailers,  discount  and
deep-discount chains, mass merchandisers, food markets, drug chains, club stores
and  various privately-held companies and individuals. Although we do not depend
on  any  single  supplier  or group of suppliers and believe we can successfully
compete  in  seeking  out  new  suppliers,  a  disruption in the availability of
merchandise  at  attractive  prices  could  impair  our  business.

WE PURCHASE IN LARGE VOLUMES AND OUR INVENTORY IS HIGHLY CONCENTRATED

     To obtain inventory at attractive prices, we take advantage of large volume
purchases,  close-outs  and other special situations. As a result, our inventory
levels  are generally higher than other discount retailers. At December 31, 2001
and  2002,  we  recorded  net inventory value of $66.5 million and $83.2 million
respectively.  At  March  31,  2003,  we  recorded  net inventory value of $86.5
million.  We  periodically  review the net realizable value of our inventory and
make  adjustments  to  its carrying value when appropriate. The current carrying
value  of  our inventory reflects our belief that we will realize the net values
recorded  on our balance sheet. However, we may not be able to do so. If we sell
large  portions of our inventory at amounts less than their carrying value or if
we  write  down  a  significant  part of our inventory, our cost of sales, gross
profit,  operating  income and net income could suffer greatly during the period
in  which  such  event  or  events  occur.


                                       13

WE  FACE  STRONG  COMPETITION

     We  compete  in  both  the acquisition of inventory and sale of merchandise
with  other  wholesalers,  discount and deep-discount stores, single price point
merchandisers,  mass  merchandisers,  food markets, drug chains, club stores and
other  retailers.  Our  industry  competitors  also  include many privately held
companies and individuals. At times, these competitors are also customers of our
Bargain  Wholesale  division.  In  the  future, new companies may also enter the
deep-discount  retail  industry.  Additionally,  we  currently  face  increasing
competition  for  the  purchase of quality close-out and other special-situation
merchandise.  Some  of  our  competitors  have  substantially  greater financial
resources  and  buying  power  than us. Our capability to compete will depend on
many  factors  including  our  ability  to  successfully  purchase  and  resell
merchandise  at  lower prices than our competitors. We cannot assure you that we
will be able to compete successfully against our current and future competitors.

WE ARE VULNERABLE TO UNCERTAIN ECONOMIC FACTORS, CHANGES IN THE MINIMUM WAGE AND
WORKER'S  COMPENSATION

     Our  ability  to  provide  quality  merchandise at our 99 Cents price point
could  be hindered by certain economic factors beyond our control, including but
not  limited  to:

- - increases in inflation;
- - increases in operating costs;
- - increases in employee health care costs;
- - increases in worker's compensation benefits;
- - increases in prevailing wage levels; and
- - decreases in consumer confidence levels.

     In  January  2001,  California enacted a minimum wage increase of $0.50 per
hour  with  an  additional  $0.50 increase required in January 2002. In 2001 and
2002, annual payroll expenses as a percentage of sales increased less than 1.0%.
Because  we  provide consumers with merchandise at a 99 Cents fixed price point,
we  typically  cannot  pass  on  cost  increases  to  our  customers.

WE FACE RISKS ASSOCIATED WITH INTERNATIONAL SALES AND PURCHASES

     Although  international  sales  historically have not been important to our
overall  net  sales,  they  have  contributed  to  historical  growth in Bargain
Wholesale's  net  sales.  In  addition,  some  of  the  inventory we purchase is
manufactured  outside  the  United  States. There are many risks associated with
doing business internationally. Our international transactions may be subject to
risks  such  as:

- - political instability;

- - currency fluctuations;

- - exchange rate controls;

- - changes in import and export regulations; and

- - changes in tariff and freight rates.

     The  United  States and other countries have also proposed various forms of
protectionist  trade  legislation.  Any  resulting  changes  in  current  tariff
structures or other trade policies could lead to fewer purchases of our products
and  could  adversely  affect  our  international  operations.

WE COULD ENCOUNTER RISKS RELATED TO TRANSACTIONS WITH OUR AFFILIATES

     We currently lease 12 of our 99 Cents Only Stores and a parking lot for one
of  these  stores  from certain members of the Gold family and their affiliates.
Our  annual  rental  expense for these facilities totaled approximately $1.9 and
$2.2  million  in  each of 2001 and 2002. In addition, one of our directors, Ben
Schwartz,  is  a  trustee  of  a trust that owns a property on which a single 99
Cents  Only  Store  is  located.  We  believe  that  our lease terms are just as
favorable  to  us  as  they  would  be for an unrelated party. Under our current
policy,  we enter into real estate transactions with our affiliates only for the
renewal  or  modification of existing leases and on occasions where we determine
that  such  transactions  are  in  our best interests. Moreover, the independent
members  of  our  Board  of  Directors  must unanimously approve all real estate
transactions  between  the  Company and our affiliates. They must also determine


                                       14

that  such  transactions are equivalent to a negotiated arm's-length transaction
with  a  third party. We cannot guarantee that we will reach agreements with the
Gold  family  on  renewal terms for the properties we currently lease from them.
Also,  even if we agree to such terms, we cannot be certain that our independent
directors  will  approve them. If we fail to renew one of these leases, we could
be  forced to relocate or close the leased store. Any relocations or closures we
experience  will  be  costly  and  could  adversely  affect  our  business.

WE RELY HEAVILY ON OUR MANAGEMENT TEAM

     Our  success  depends  substantially  on  David Gold and Eric Schiffer, our
Chief  Executive  Officer  and  President,  respectively.  We  also  rely on the
continued  service  of  our executive officers and other key management. We have
not entered into employment agreements with any of our executive officers and we
do  not  maintain key person life insurance on them. As we continue to grow, our
success will depend on our ability to identify, attract, hire, train, retain and
motivate  other  highly  skilled  management  personnel.  Competition  for  such
personnel is intense, and we may not be able to successfully attract, assimilate
or  retain  sufficiently  qualified  candidates.

OUR  OPERATING  RESULTS  MAY  FLUCTUATE  AND  MAY BE AFFECTED BY SEASONAL BUYING
PATTERNS

     Historically,  our  highest  net  sales  and operating income have occurred
during  the  fourth  quarter, which includes the Christmas and Halloween selling
seasons.  During  2001  and  2002,  we  generated approximately 29.9% and 29.5%,
respectively,  of our net sales and approximately 35.3% and 32.7%, respectively,
of  our  operating  income  during  the  fourth  quarter.  If for any reason the
Company's  net sales were to fall below norms during the fourth quarter it could
have an adverse impact on our profitability and impair our results of operations
for  the entire year. Adverse weather conditions or other disruptions during the
peak  holiday  season  could also affect our net sales and profitability for the
year.
In  addition  to  seasonality,  many  other  factors  may  cause  our results of
operations  to vary significantly from quarter to quarter. Some of these factors
are  beyond  our  control.  These  factors  include:

- - the number of new stores and timing of new store openings;
- - the level of advertising and pre-opening expenses associated with new stores;
- - the integration of new stores into our operations;
- - general economic health of the deep-discount retail industry;
- - changes in the mix of products sold;
- - unexpected increases in shipping costs;
- - ability to successfully manage our inventory levels;
- - changes in our personnel;
- - fluctuations in the amount of consumer spending;
- - the amount and timing of operating costs and capital expenditures relating to
the growth of our business.

WE  ARE  SUBJECT  TO  ENVIRONMENTAL  REGULATIONS

     Under  various federal, state and local environmental laws and regulations,
current  or  previous  owners or occupants of property may become liable for the
costs of removing any hazardous substances found on the property. These laws and
regulations  often  impose  liability  without  regard to fault. As of March 31,
2003,  we  leased  all  but  23  of  our  stores.  We own our main warehouse and
distribution facility (where our executive offices are located). However, in the
future  we may be required to incur substantial costs for preventive or remedial
measures  associated  with  the presence of hazardous materials. In addition, we
operate one underground diesel storage tank and one above-ground propane storage
tank  at our warehouse. Although we have not been notified of, and are not aware
of, any current environmental liability, claim or non-compliance, we could incur
costs  in  the future related to our leased properties and our storage tanks. In
the  ordinary  course  of  our  business,  we  sometimes  handle  or  dispose of
commonplace  household products that are classified as hazardous materials under
various  environmental  laws and regulations. We have adopted policies regarding
the  handling  and disposal of these products, and we train our employees on how
to  handle  and  dispose  of  them.  We  cannot assure you that our policies and
training  will  successfully  help  us  avoid  potential  violations  of  these
environmental  laws  and  regulations  in  the  future.

ANTI-TAKEOVER  EFFECT;  CONCENTRATION  OF OWNERSHIP BY OUR EXISTING OFFICERS AND
PRINCIPAL  STOCKHOLDERS

     In  addition  to some governing provisions in our Articles of Incorporation


                                       15

and Bylaws, we are also subject to certain California laws and regulations which
could  delay,  discourage  or prevent others from initiating a potential merger,
takeover  or other change in our control, even if such actions would benefit our
shareholders  and  us.  Moreover  David  Gold,  our Chairman and Chief Executive
Officer,  and  members  of  his immediate family and certain of their affiliates
beneficially  own  as  of  March  31,  2003,  22,736,242  or  31.9%  of  shares
outstanding.  As  a  result,  they  have  the  ability  to influence all matters
requiring  the vote of our shareholders, including the election of our directors
and  most  of  our  corporate  actions.  They  can also control our policies and
potentially  prevent  a  change  in our control. This could adversely affect the
voting  and  other rights of our other shareholders and could depress the market
price  of  our  common  stock.

OUR  STOCK  PRICE  COULD  FLUCTUATE  WIDELY

     The  market  price  of  our  common stock has risen substantially since our
initial  public  offering  on  May 23, 1996. Trading prices for our common stock
could  fluctuate  significantly  due  to  many  factors,  including:
- -  the depth of the market for our common stock;
- -  changes in expectations of our future financial performance, including
   financial estimates by securities analysts and investors;
- -  variations in our operating results;
- -  conditions or trends in our industry or industries of any of our significant
   clients;
- -  the conditions of the market generally;
- -  additions or departures of key personnel; and
- -  future sales of our common stock.

RISKS COULD ARISE DUE TO OUR USE OF ARTHUR ANDERSEN LLP AS OUR INDEPENDENT
AUDITORS

     You may have no effective remedy against Arthur Andersen LLP, which audited
our  financial  statements  for  the  years ended December 31, 2000 and 2001, in
connection  with  a  material  misstatement  or  omission  in  those  financial
statements,  or in connection with any other claim arising from its provision of
auditing  and  other  services  to  us.  On  June  15, 2002, Arthur Andersen was
convicted  of  obstructing  justice  in  connection with investigations of their
former  client  Enron  Corp.  Arthur  Andersen  ceased practicing before the SEC
effective  August  31,  2002.  Our  inability  to include in future registration
statements  or  reports  financial  statements  for one or more years audited by
Arthur  Andersen LLP or to obtain Arthur Andersen LLP's consent to the inclusion
of  their report on our 2000 and 2001 financial statements may impede our access
to the capital markets. Should we seek to access the public capital markets, SEC
rules  will  require us to include or incorporate by reference in any prospectus
three  years  of  audited  financial  statements.  Until  our  audited financial
statements  for  the  fiscal year ending December 31, 2004 become available, the
SEC's current rules would require us to present audited financial statements for
one  or more fiscal years audited by Arthur Andersen LLP. Prior to that time the
SEC  may cease accepting financial statements audited by Arthur Andersen LLP, in
which  case  we  would  be  unable  to  access the public capital markets unless
PricewaterhouseCoopers  LLP, our current independent accounting firm, or another
independent  accounting  firm,  is  able  to  audit  the  financial  statements
originally  audited  by  Arthur  Andersen  LLP.  In addition, as a result of the
departure  of  our  former  engagement  team  leaders, Arthur Andersen LLP is no
longer  in  a position to consent to the inclusion or incorporation by reference
in  any  prospectus  of their report on our audited financial statements for the
years  ended  December  31,  2000  and  December  31, 2001, and investors in any
subsequent offerings for which we use their audit report will not be entitled to
recovery  against  them  under  Section 11 of the Securities Act of 1933 for any
material misstatements or omissions in those financial statements. Consequently,
our  financing costs may increase or we may miss attractive market opportunities
if  either  our  annual financial statements for 2000 and 2001 audited by Arthur
Andersen  LLP should cease to satisfy the SEC's requirements or those statements
are  used in a prospectus but investors are not entitled to recovery against our
auditors  for  material  misstatements  or  omissions  in  them.

ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

     The  Company  is  exposed  to  interest  rate  risk  for its investments in
marketable  securities.  At  March  31,  2003, the Company had $174.6 million in
marketable  securities  maturing  at  various  dates  through February 2004. The
Company's  investments  are  comprised primarily of investment grade federal and
municipal  bonds  and  commercial paper. The Company generally holds investments
until  maturity,  and  therefore  should not bear any interest risk due to early
disposition.  We  do  not  enter  into  any  derivative or interest rate hedging
transactions.  Any  premium  or  discount  recognized  upon  the  purchase of an
investment  is amortized over the term of the investment. At March 31, 2003, the
fair  value  of  investments  approximated  the  carrying  value.


                                       16

ITEM  4.  CONTROLS  AND  PROCEDURES

EVALUATION  OF  DISCLOSURE  CONTROLS  AND  PROCEDURES

     Within  the  90-day period prior to the date of this report, we carried out
an  evaluation  under  the  supervision  and  with  the  participation  of  our
management,  including  our  Chief Executive Officer ("CEO") and Chief Financial
Officer  ("CFO"),  of  the  effectiveness  of  the  design  and operation of our
disclosure  controls  and  procedures  ("Disclosure  Controls") pursuant to Rule
13a-14(c)  and 15d-14(c) of the Securities Exchange Act of 1934. Based upon that
evaluation, our CEO and our CFO concluded that, subject to the limitations noted
below,  our  Disclosure Controls and procedures are effective in timely alerting
them  to  material  information  required  to  be  included  in our periodic SEC
filings.

CHANGES  IN  INTERNAL  CONTROLS  AND  PROCEDURES

     There have been no significant changes in our internal controls or in other
factors,  which  could  significantly affect internal controls subsequent to the
date  that  the  Company  carried  out  its  evaluation.

LIMITATIONS  ON  THE  EFFECTIVENESS  OF  CONTROLS

     Our  management,  including  our  CEO  and  CFO,  does  not expect that our
Disclosure  Controls  and  internal controls will prevent all error and fraud. A
control  system,  no  matter  how  well conceived and operated, can provide only
reasonable,  not  absolute,  assurance that the objectives of the control system
can  be  met. Further, the design of a control system must reflect the fact that
there  are resource constraints, and the benefits of controls must be considered
relative  to  their  costs.  Because  of the inherent limitations in all control
systems,  no  evaluation  of  controls  can  provide absolute assurance that all
control  issues  and  instances  of  fraud, if any, within the Company have been
detected.  These  inherent  limitations include the realities that judgements in
decision-making  can  be faulty, and that breakdowns can occur because of simple
error  or  mistake. Additionally, controls can be circumvented by the individual
acts  of  some  persons,  by  collusion  of two or more people, or by management
override  of  the  control.

SPECIAL  NOTE  REGARDING  FORWARD-LOOKING  INFORMATION

     This  report  on  Form  10-Q  contains  statements  that  constitute
"forward-looking  statements"  within the meaning of Section 21E of the Exchange
Act  and  Section  27A  of  the  Securities Act. The words "expect", "estimate",
"anticipate",  "predict",  "believe"  and  similar  expressions  and  variations
thereof  are  intended  to  identify forward-looking statements. Such statements
appear in a number of places in this filing and include statements regarding the
intent, belief or current expectations of 99 Cents Only Stores and its directors
or  officers  with  respect  to,  among  other  things, (a) trends affecting the
financial condition or results of operations of the Company and (b) the business
and  growth  strategies  of  the  Company.  The  shareholders of the Company are
cautioned  not  to  put  undue reliance on such forward-looking statements. Such
forward-looking  statements are not guarantees of future performance and involve
risks  and  uncertainties,  and  actual results may differ materially from those
projected  in  this  Report,  for  the  reasons,  among others, discussed in the
Sections  -  "Management's  Discussion  and  Analysis of Financial Condition and
Results  of Operations" and "Risk Factors". The Company undertakes no obligation
to  publicly  revise  these  forward-looking  statements  to  reflect  events or
circumstances  that arise after the date hereof. Readers should carefully review
the  risk  factors  described  in this Form 10-Q and other documents the Company
files  from  time to time with the Securities and Exchange Commission, including
the  Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2002.


                                       17

PART  II    OTHER  INFORMATION

ITEM 1.    LEGAL PROCEEDINGS
                  None

ITEM 2.    CHANGES IN SECURITIES
                  None

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES
                  None

ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
                  None

ITEM 5.    OTHER INFORMATION
                  None

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

           a.     Exhibits

                  99.1 Certification of Chief Executive Officer pursuant to
                  section 906 of the Sarbanes-Oxley Act of 2002.

                  99.1 Certification of Chief Financial Officer pursuant to
                  section 906 of the Sarbanes-Oxley Act of 2002.


           b.     Reports on Form 8-K

                  None


                                       18

                                    SIGNATURE


Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereto  duly  authorized.


                                                   99 CENTS ONLY STORES
Date: May 9, 2003                                  /s/ Andrew A. Farina
                                                   --------------------


                                                   Andrew A. Farina
                                                   Chief Financial Officer
                                                   (Duly Authorized Officer)


                                       19

                                CERTIFICATION OF
                             CHIEF EXECUTIVE OFFICER
                             OF 99 CENTS ONLY STORES

I, David Gold, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of 99 Cents Only Stores;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   Designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b.   Evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c.   Presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a.   All  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b.   Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  May 9, 2003
By:    /s/  David  Gold
       ----------------
       David  Gold,  Chief  Executive  Officer


                                       20

                                CERTIFICATION OF
                             CHIEF FINANCIAL OFFICER
                             OF 99 CENTS ONLY STORES

I, Andrew Farina, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of 99 Cents Only Stores;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   Designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b.   Evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c.   Presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a.   All  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b.   Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  May 9, 2003
By:   /s/  Andrew  Farina
      -------------------
     Andrew Farina, Chief Financial Officer



                                  EXHIBIT INDEX

99.1    Certification  of Chief Executive Officer pursuant to Section 906 of the
        Sarbanes-Oxley Act  of  2002  dated  May  9,  2003.

99.2    Certification of Chief Financial Officer pursuant to Section 906 of the
        Sarbanes-Oxley Act of 2002 dated May 9, 2003.


                                       21