News Announcement	For Immediate Release
For further information contact:
Douglas Bruggeman	Joseph N. Jaffoni/David Collins
Chief Financial Officer	Jaffoni & Collins Incorporated
937/276-3931	212/835-8500 or rsc@jcir.com

REX STORES REPORTS FISCAL 2009 SECOND QUARTER DILUTED EPS OF $0.09

- Repurchased 125,942 Common Shares in Fiscal 2009 Second Quarter
and 280,505 Common Shares in First Half of Fiscal 2009 -

Dayton, Ohio (September 9, 2009) – REX Stores Corporation (NYSE: RSC) today announced financial results for the three month period ended July 31, 2009 (the second quarter of the Company’s 2009 fiscal year). The Company will host a conference call and webcast this morning (details below) to review the results.

As of July 31, 2009, REX had unrestricted cash and cash equivalents of approximately $81.1 million (exclusive of approximately $3.0 million of cash at consolidated ethanol production facilities). Total REX shareholders’ equity at July 31, 2009 was $236.9 million and the Company had 9.2 million shares outstanding at the end of its fiscal 2009 second quarter.

During the fiscal 2009 second quarter the company closed its remaining retail locations though it continues to recognize deferred income from service contracts. Effective in the fiscal 2009 second quarter REX began reporting the results of its real estate operations as a separate segment which includes all owned and sub leased real estate including sites previously used as retail stores and distribution centers and certain administrative expenses. Reporting for REX’s real estate segment excludes results from discontinued operations.

At July 31, 2009, REX had lease or sub-lease agreements, as landlord, for all or parts of 24 properties, including 18 stores leased to a third party appliance retail chain. REX owns 20 of these properties and is the tenant/sub landlord for four of the properties. At July 31, 2009 the third party leased and occupied 15 of the owned properties and three of the sub leased properties. REX has 25 owned properties, including two distribution centers, that are vacant at July 31, 2009 which it is marketing as vacant properties to lease or sell.

At July 31, 2009 REX also had interests in the following ethanol production facilities with initial production commencing at One Earth Energy LLC and Big River Resources, LLC-Galva during the period:

-more-

REX Reports Fiscal 2009 Second Quarter Results, 9/9/09 page 2

	REX’s			Production
	Capital			Nameplate
	Investment	REX’s	Debt	Capacity
Entity	($ in	Ownership	Investment	(millions of
	millions)	Interest	($ in millions)	gallons)
Levelland Hockley County Ethanol, LLC (1)	$16.5	56%	$5.3	40
Patriot Renewable Fuels, LLC	$16.0	23%	$1.0	100
One Earth Energy, LLC	$50.8	74%	-	100
Big River Resources, LLC-W. Burlington			-	92
Big River Resources, LLC-Galva	$20.0	10%	-	100

(1)      On January 29, 2009, REX (through a wholly-owned subsidiary) agreed to fund up to $2.0 million in the form of a subordinated revolving line of credit to Levelland Hockley and to issue a $1.0 million letter of credit for the benefit of Levelland Hockley. These amounts are not reflected in the table above.

Segment Balance Sheet Data
	July 31, 2009	Jan. 31, 2009	July 31, 2008
Assets:
Alternative energy	$280,490	$249,422	$217,994
Real estate	35,235	35,523	38,247
Retail	8,915	44,914	75,991
Corporate	121,509	121,429	107,975
Total assets	$446,149	$451,288	$440,207

Segment Income Statement Data

The table below summarizes net sales and revenue from REX’s alternative energy, real estate and retail segments and income (loss) from continuing operations for the three and six month periods ended July 31, 2009 and July 31, 2008. The Company’s financial results reflect the consolidation of its investments in two ethanol affiliates, Levelland Hockley County Ethanol, LLC (“Levelland Hockley”) and One Earth Energy LLC (“One Earth”). The real estate revenue recorded in the fiscal 2009 second quarter is from rental income. Certain amounts differ from those previously reported as a result of certain retail stores being reclassified into discontinued operations.

	Three Months Ended			Six Months Ended
	July 31,			July 31,
	2009		2008	2009		2008
Net sales and revenue:
Alternative energy	$16,810		$24,857	$30,927		$26,024
Real estate	353		96	486		185
Retail	4,314		17,150	15,513		35,009
Total net sales and revenues	$21,477		$42,103	$46,926		$61,218
Segment gross profit (loss):
Alternative energy	$1,209		$634	$1,441		$690
Real estate	(163	)	91	(234	)	178
Retail	2,519		5,949	6,203		11,968
Total gross profit	$3,565		$6,674	$7,410		$12,836

-more-

REX Reports Fiscal 2009 Second Quarter Results, 9/9/09 page 3

Segment Income Statement Data (continued)
	Three Months Ended				Six Months Ended
	July 31,				July 31,
	2009		2008		2009		2008
Segment profit (loss):
Alternative energy	$(551	)	$983		$(2,367	)	$1,406
Real estate	(214	)	33		(285	)	95
Retail	2,185		539		2,453		893
Corporate expense	(430	)	(582	)	(787	)	(1,096	)
Interest expense	(52	)	(93	)	(253	)	(221	)
Investment income	73		478		180		1,140
Income from synthetic fuel investments	-		-		-		670
Income (loss) from continuing operations
before income taxes	$1,011		$1,358		$(1,059	)	$2,887

REX recorded pre-tax income from continuing operations, of $1.0 million in the quarter ended July 31, 2009 compared with $1.4 million in the comparable prior year period. In the quarter ended July 31, 2009 REX generated income from continuing operations including non-controlling interest, net of tax of $0.4 million and a gain from discontinued operations, net of tax, of $0.2 million. In the comparable year ago period REX reported income from continuing operations including non-controlling interest, net of tax of $1.0 million and a gain from discontinued operations, net of tax of $0.3 million. For the fiscal second quarter ended July 31, 2009 REX generated net income attributable to common shareholders of $0.8 million, or $0.09 per diluted share. In the second quarter of fiscal 2008 REX reported net income attributable to common shareholders of $1.2 million, or $0.11 per diluted share. Per share results are based on 9,486,000 and 11,146,000 diluted weighted average shares outstanding for the quarters ended July 31, 2009 and July 31, 2008, respectively.

During the fiscal 2009 second quarter REX purchased 125,942 shares of its common stock in open market transactions. In the first half of fiscal 2009, REX repurchased 280,505 of its common stock in open market transactions. Reflecting all purchases to-date, the Company has approximately 299,000 authorized shares remaining available to purchase under the expanded February 2009 stock buy-back authorization and presently has approximately 9,210,000 shares of common stock outstanding.

The Company will host a conference call and webcast today at 11:00 a.m. ET, which are open to the general public. The conference call dial-in number is 212/231-2910; please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the call live via the Investor Relations page of the Company’s website, www.rextv.com; please allow 15 minutes to register, download and install any necessary software.

Following its completion, a telephonic replay of the call can be accessed through 1:00 p.m. ET on September 23, 2009 by dialing 800/633-8284 or 402/977-9140 (international callers). The access code for the audio replay is 21436625. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com.

-more-

REX Reports Fiscal 2009 Second Quarter Results, 9/9/09 page 4

This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the uncertainty of constructing ethanol plants on time and on budget, the impact of legislative changes, the price volatility and availability of corn, sorghum, dried distiller grains, ethanol, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, the effects of terrorism or acts of war, changes in real estate market conditions, the fluctuating amount of income received from the Company’s synthetic fuel investments and the impact of Internal Revenue Service audits. The Company does not intend to update publicly any forward-looking statements except as required by law.

-tables follow-

REX Reports Fiscal 2009 Second Quarter Results, 9/9/09 page 5

REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements Of Income
(In Thousands, Except Per Share Amounts)
Unaudited

		Three Months						Six Months
		Ended July 31,						Ended July 31,
	2009			2008*			2009			2008*
Net sales and revenue	$	21,477		$	42,103		$	46,926		$	61,218
Cost of sales (excluding retail segment depreciation)		17,912			35,429			39,516			48,382
Gross profit		3,565			6,674			7,410			12,836
Selling, general and administrative expenses		(1,905	)		(6,779	)		(6,282	)		(14,340	)
Investment income		114			519			259			1,374
Interest expense		(811	)		(890	)		(1,604	)		(1,003	)
Loss on early termination of debt		(28	)		-			(100	)		-
Equity in income (loss)of unconsolidated ethanol affiliates		184			874			(77	)		1,922
Income from synthetic fuel investments		-			-			-			670
(Losses) gains on derivative financial instruments, net		(108	)		960			(665	)		1,428
Income (loss) from continuing operations before provision/benefit for
income taxes and discontinued operations		1,011			1,358			(1,059	)		2,887
(Provision) benefit for income taxes		(569	)		(399	)		24			(762	)
Income (loss) from continuing operations including noncontrolling
interest		442			959			(1,035	)		2,125
(Loss) income from discontinued operations, net of tax		(52	)		86			(800	)		224
Gain on disposal of discontinued operations, net of tax		251			197			124			196
Net income (loss) including noncontrolling interest		641			1,242			(1,711	)		2,545
Net loss (income) attributable to noncontrolling interest		196			(36	)		817			187
Net income (loss) attributable to REX common shareholders	$	837		$	1,206		$	(894	)	$	2,732
Weighted average shares outstanding – basic		9,231			10,510			9,264			10,618
Basic income (loss) per share from continuing operations attributable
to REX common shareholders	$	0.07		$	0.08		$	(0.02	)	$	0.22
Basic (loss) income per share from discontinued operations attributable
to REX common shareholders		(0.01	)		0.01			(0.09	)		0.02
Basic income per share on disposal of discontinued operations
attributable to REX common shareholders		0.03			0.02			0.01			0.02
Basic net income (loss) per share attributable to REX common
shareholders	$	0.09		$	0.11		$	(0.10	)	$	0.26
Weighted average shares outstanding – diluted		9,486			11,146			9,264			11,396
Diluted income (loss) per share from continuing operations attributable
to REX common shareholders	$	0.07		$	0.08		$	(0.02	)	$	0.20
Diluted (loss) income per share from discontinued operations
attributable to REX common shareholders		(0.01	)		0.01			(0.09	)		0.02
Diluted income per share on disposal of discontinued operations
attributable to REX common shareholders		0.03			0.02			0.01			0.02
Diluted net income (loss) per share attributable to REX common
shareholders	$	0.09		$	0.11		$	(0.10	)	$	0.24
Amounts attributable to REX common shareholders:
Income (loss) from continuing operations, net of tax	$	638		$	923		$	(218	)	$	2,312
Income (loss) from discontinued operations, net of tax		199			283			(676	)		420
Net income (loss)	$	837		$	1,206		$	(894	)	$	2,732

^*      Amounts differ from those previously reported as a result of certain stores being reclassified into discontinued operations.

- balance sheet follows -

REX Reports Fiscal 2009 Second Quarter Results, 9/9/09 page 6

REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(in thousands)
Unaudited

		July 31,			January 31,			July 31,
		2009			2009			2008
Assets
Current assets:
Cash and cash equivalents	$	84,103		$	91,991		$	79,608
Restricted cash		1,024			-			2,774
Accounts receivable, net		2,119			4,197			3,509
Inventory, net		7,832			24,374			59,457
Refundable income taxes		7,364			7,790			1,158
Prepaid expenses and other		3,267			1,063			1,274
Deferred taxes, net		8,523			13,230			10,312
Total current assets		114,232			142,645			158,092
Property and equipment, net		255,879			235,454			202,193
Other assets		10,203			12,414			13,670
Goodwill		-			-			1,322
Deferred taxes, net		23,836			18,697			21,929
Investments		41,999			42,078			43,001
Total assets	$	446,149		$	451,288		$	440,207
Liabilities and shareholders' equity:
Current liabilities:
Current portion of long-term debt and capital lease
obligations, alternative energy	$	10,642		$	5,898		$	4,874
Current portion of long-term debt, other		362			1,576			1,735
Accounts payable, trade		5,099			25,167			49,688
Deferred income		9,659			13,510			14,533
Derivative financial instruments		2,105			1,996			-
Other current liabilities		6,696			10,122			7,140
Total current liabilities		34,563			58,269			77,970
Long-term liabilities:
Long-term debt and capital lease obligations, alternative energy		128,045			94,003			49,877
Long-term debt, other		2,780			9,936			12,250
Deferred income		9,793			17,263			18,919
Derivative financial instruments		3,776			4,032			839
Other		6,559			4,152			1,152
Total long-term liabilities		150,953			129,386			83,037
Equity:
REX shareholders’ equity:
Common stock		299			299			299
Paid-in capital		142,735			142,486			142,584
Retained earnings		281,438			282,332			288,361
Treasury stock		(187,632	)		(186,057	)		(179,583	)
Accumulated other comprehensive income, net of tax		37			-			-
Total REX shareholders' equity		236,877			239,060			251,661
Noncontrolling interests		23,756			24,573			27,539
Total equity		260,633			263,633			279,200
Total liabilities and equity	$	446,149		$	451,288		$	440,207
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