ShopKo Stores, Inc. (NYSE: SKO) reported total retail sales for the four weeks ended May 27, 2000 increased 31.5 percent to $270.9 million from $206.0 million during the same period last year. Included in current year results are $11.4 million in sales from 15 new ShopKo stores, which are currently not included in ShopKo's comparable store sales base, and $64.7 million in sales from 165 Pamida discount stores. The Pamida discount chain was acquired on July 6, 1999. ShopKo retail comparable store sales generated a 1.0 percent increase over a strong 9.5 percent increase for the same period last year.

For the month of June, ShopKo retail comparable store sales gains are anticipated to be in the 0-3 percent range over a robust 13.1 percent increase for the same period last year. The company remains confident in the annualized ShopKo retail comparable store sales gains of 3-5 percent.

Total retail sales for the cumulative seventeen weeks ended May 27, 2000 increased 36.0 percent to $1,020.5 million from $750.4 million for the same period last year. ShopKo retail comparable stores sales increased 2.2 percent over an 8.4 percent increase for the same period last year.

Sales Summary (dollars in millions)

Retail Segments Period Ended % Change

4 Weeks: 05/27/00 05/29/99 Total Comp

ShopKo $206.2 $206.0 0.1% 1.0%
Pamida 64.7 -- N/A --
* Total Retail $270.9 $206.0 31.5%

17 Weeks:
ShopKo $789.6 $750.4 5.2% 2.2%
Pamida 230.9 N/A --
*Total Retail $1,020.5 $750.4 36.0%

*For all years presented, total retail sales are exclusive of layaway sales.

ShopKo Stores, Inc., a Fortune 500 company headquartered in Green Bay, Wis., operates 327 retail stores in 22 states, primarily in the Midwest, Western Mountain and Pacific Northwest regions. Retail operations include 162 specialty discount stores operating under the ShopKo name in mid-sized and larger cities, and 165 Pamida discount stores in smaller, rural communities. The company also serves the rapidly growing managed health care industry through its subsidiary ProVantage Health Services, Inc. ProVantage is a leading health benefit management company providing health benefit management services, pharmacy mail services, vision benefit management services and health information and clinical support services. For more information about ShopKo, Pamida or ProVantage, visit our web site at http://www.shopko.com.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to important factors, which could cause ShopKo's actual results to differ materially from those anticipated by the forward-looking statements. These factors include those referenced in ShopKo's current Annual Report on Form 10-K or as may be described from time to time in ShopKo's subsequent SEC filings.