EXHIBIT 99.1

FOR IMMEDIATE RELEASE                                         PRESS RELEASE

                                  CONTACT: Dollar General Corporation
                                           100 Mission Ridge
                                           Goodlettsville, Tennessee 37072
                                           Investor Contact:  Kiley Fleming
                                           (615) 855-4000

                 Dollar General Corporation Announces Pricing of
                         $200 Million Private Placement

GOODLETTSVILLE, TENNESSEE -- June 20, 2000 -- Dollar General Corporation (NYSE:
DG)  announced  today that it privately  placed $200 million of 8 5/8% notes due
2010, with an original issue price of 99.784%.

Closing on the private placement is expected to occur on or about June 21, 2000.
The  proceeds  from the  sale of the  notes  will be used to  repay  outstanding
short-term debt and for general corporate purposes.

The  notes  have not been  registered  under the  Securities  Act and may not be
offered  or sold in the  United  States  absent  registration  or an  applicable
exemption from the registration requirements.

Dollar General  operates more than 4,510  neighborhood  stores in 24 states with
distribution centers in Georgia, Kentucky, Mississippi, Oklahoma and Virginia.