Exhibit 99.1

The Bon-Ton Stores, Inc. Announces Quarterly Cash Dividend

    YORK, Pa.--June 6, 2003--The Bon-Ton Stores, Inc.
(Nasdaq:BONT) today announced the Board of Directors declared its
first cash dividend of 2 1/2 cents per share on the Class A Common
Stock and Common Stock of the Company payable July 15, 2003 to
shareholders of record as of July 1, 2003.
    James H. Baireuther, Vice Chairman and Chief Administrative
Officer, commented, "We are pleased to announce this cash dividend to
our shareholders. Our liquidity and strong balance sheet allows us to
provide another avenue of return to our shareholders. We remain
committed to our ongoing strategic initiatives which include: aligning
our merchandise mix with the needs of our customers, strengthening our
private brands, growing our credit card customer loyalty program,
investing in our existing store base, improving productivity through
technology and opening new stores. Our Board of Directors will
consider dividends in subsequent periods as it deems appropriate."

    The Bon-Ton Stores, Inc. operates 72 department stores in targeted
markets in Pennsylvania, New York, Maryland, New Jersey, Connecticut,
Massachusetts, New Hampshire, Vermont and West Virginia. The stores
carry a broad assortment of quality, brand-name fashion apparel and
accessories for women, men and children, as well as distinctive home
furnishings.

    Statements made in this press release, other than statements of
historical information, are forward looking statements and are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause results to differ materially from those
set forth in these statements. Factors that could cause such
differences include, but are not limited to, risks related to retail
businesses generally, additional competition from existing and new
competitors, uncertainties associated with opening new stores or
expanding or remodeling existing stores, the Company's presence in and
dependence on limited geographic markets, the ability to attract and
retain qualified management, the dependence upon key vendor
relationships and the ability to obtain financing for working capital,
capital expenditures and general corporate purposes. Additional
factors that could cause the Company's actual results to differ from
those contained in these forward looking statements are discussed in
greater detail in the Company's periodic reports filed with the
Securities and Exchange Commission.

    CONTACT: Bon-Ton Stores, Inc.
             Mary Kerr, 717/751-3071