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DOLLAR GENERAL BOARD OF DIRECTORS DECLARES DIVIDEND

GOODLETTSVILLE, Tenn. – August 24, 2004 – Dollar General Corporation (NYSE: DG) today announced that its board of directors declared a dividend of $0.04 per share, payable October 14, 2004, to common shareholders of record on September 30, 2004.

About Dollar General

Dollar General is a Fortune 500^® discount retailer with 7,079 neighborhood stores as of July 30, 2004.  Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices.  The Company store support center is located in Goodlettsville, Tennessee. Dollar General’s Web site can be reached at www.dollargeneral.com.

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