Exhibit 99.1

     Fred's Names Bruce Efird President as Part of Its Management
                           Succession Plan

         John Reier Assumes Role of Vice-Chairman of the Board

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 28, 2007--Fred's Inc.
(NASDAQ: FRED) today announced that the Company has named Bruce A.
Efird (age 48) President, succeeding John D. Reier (age 67), who
becomes Vice Chairman of the Board of Directors. Efird will join the
Company on September 22, 2007. To ensure an orderly transition in
leadership, Reier will work closely with Efird during the remainder of
the current fiscal year.

    Commenting on the announcement, Michael J. Hayes, Chief Executive
Officer, said, "We are excited to welcome Bruce Efird to the Fred's
executive team following an intensive, nine-month search. Bruce brings
extensive merchandising, marketing and management experience from
various retail venues. Fred's has focused on addressing infrastructure
changes and merchandising upgrades in 2007 to be in a position to
drive growth over the next five years. We believe Bruce possesses the
leadership and strategic skill sets to maximize Fred's long-term
potential. We also commend John Reier for the dedication he has shown
to our company for the past eight years, and we are delighted to know
that we will retain his seasoned merchandising insight and experience
on our Board following this transition."

    Efird most recently served as Executive Vice
President-Merchandising for Meijer, Inc., a leading supercenter
retailer in the Midwest with more than $13 billion in sales. There he
was responsible for all merchandising functions, including softlines,
home furnishings, drugstore, general merchandise, groceries and
perishables. He also was in charge of marketing and advertising
functions as well as pricing and e-commerce for the chain's 179 stores
across a five-state area. Prior to that, Efird was Executive Vice
President/General Manager for Bruno's Supermarkets, Inc. in
Birmingham, Alabama. Efird began his retail career with Food Lion,
Inc. in 1984 as the chain grew from 170 to more than 1200 stores and
$9 billion in annual sales.

    Efird earned a Bachelor of Science in Business Administration from
Lenoir-Rhyne College and is a graduate of the Executive Program at
Cornell University.

    Fred's, Inc. operates 701 discount general merchandise stores
mainly in the southeastern United States, including 24 franchised
Fred's stores. For more information about the Company, visit Fred's
website at www.fredsinc.com.

    Comments in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties which
could cause actual results to differ materially from those projected
in the forward-looking statements. These risks and uncertainties
include, but are not limited to, general economic trends, changes in
consumer demand or purchase patterns, delays or interruptions in the
flow of merchandise between the Company's distribution center and its
stores or between the Company's suppliers and same, a disruption in
the Company's data processing services, costs and delays in acquiring
or developing new store sites, and other contingencies discussed in
the Company's Securities and Exchange Commission filings. Fred's
undertakes no obligation to release revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or
to reflect the occurrence of unforeseen events, except as required to
be reported under the rules and regulations of the Securities and
Exchange Commission.

    CONTACT: Fred's Inc.
             Jerry A. Shore, 901-362-3733, Ext. 2217
             Executive Vice President and Chief Financial Officer