Exhibit 99.1

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

    YORK, Pa.--(BUSINESS WIRE)--May 25, 2005--The Bon-Ton Stores, Inc.
(Nasdaq:BONT) today announced the Board of Directors declared a cash
dividend of 2 1/2 cents per share on the Class A Common Stock and
Common Stock of the Company payable July 15, 2005 to shareholders of
record as of July 1, 2005.
    James H. Baireuther, Vice Chairman and Chief Administrative
Officer, commented, "We are pleased to announce this cash dividend to
our shareholders. This represents the Company's ninth consecutive
quarterly dividend, which we believe, given our liquidity and strong
balance sheet, is an appropriate avenue of return to our shareholders.
Our Board of Directors will consider dividends in subsequent periods
as it deems appropriate."
    The Bon-Ton Stores, Inc. operates 139 department stores and two
furniture stores in 16 states, from the Northeast to the Midwest under
the Bon-Ton and Elder-Beerman names. 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. The
Bon-Ton and Elder-Beerman stores provide high-quality merchandise at
competitive prices delivered with top-quality service in targeted
markets. For further information, please visit the investor relations
section of the Company's website at www.bonton.com/investor/home.asp.

    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 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: The Bon-Ton Stores, Inc.
             Mary Kerr
             Vice President
             Corporate Communications
             (717) 751-3071