The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced the Company will begin to operate in late October fine jewelry departments in 86 of its nameplate stores, having signed a multi-year agreement with certain suppliers. Prior to this, Finlay Fine Jewelry Corporation (“Finlay”), through a license agreement, was responsible for operating the fine jewelry departments. Bon-Ton expects to have a full assortment of merchandise in its fine jewelry departments for the 2009 holiday selling season.

The Company also announced that former Finlay store associates in good standing will be offered an equivalent level position in these stores. Benefits will be provided for eligible associates according to Bon-Ton’s benefit programs.

Bud Bergren, President and Chief Executive Officer, commented, “We are very excited about this new endeavor in fine jewelry. We believe internally operating and building this destination business will provide increased sales and profits as well as drive traffic into our stores. Fine jewelry is an important business for us as our customers look to Bon-Ton for distinctive styling, quality and value in fine jewelry. We believe this initiative will reinforce our position as a destination for a compelling overall assortment for our customers and strengthen our Company for the long-term.”

The Bon-Ton Stores, Inc. operates 279 stores, including 12 furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. The stores offer a broad assortment of brand-name fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. For further information, please visit the investor relations section of the Company’s website at http://investors.bonton.com.

Certain information included in this press release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which may be identified by words such as “may,” “could,” “will,” “plan,” “expect,” “anticipate,” “estimate,” “project,” “intend” or other similar expressions, involve important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. Factors that could cause such differences include, but are not limited to, risks related to retail businesses generally; a significant and prolonged deterioration of general economic conditions which could negatively impact the Company, including the potential write-down of the current valuation of intangible assets and deferred taxes; changes in the terms of the Company’s proprietary credit card program, potential increase in pension obligations; consumer spending patterns, debt levels, and the availability and cost of consumer credit; additional competition from existing and new competitors; inflation; changes in the costs of fuel and other energy and transportation costs; weather conditions that could negatively impact sales; uncertainties associated with expanding or remodeling existing stores; the ability to attract and retain qualified management; the dependence upon relationships with vendors and their factors; a security breach; the ability to reduce SG&A expenses; the incurrence of unplanned capital expenditures; the ability to realize the expected benefits from our planned changes in operating structure 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 under Item 1A of the Company’s Form 10-K filed with the Securities and Exchange Commission.