[REX STORES LOGO]


NEWS ANNOUNCEMENT                           FOR IMMEDIATE RELEASE

For further information contact:

Douglas Bruggeman                           Stewart A. Lewack, Joseph N. Jaffoni
Chief Financial Officer                     Jaffoni & Collins Incorporated
937/276-3931                                212/835-8500 or rsc@jcir.com


                        REX STORES NAMES DAVID L. BEARDEN
                      PRESIDENT AND CHIEF OPERATING OFFICER

  - FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF PANASONIC'S NATIONAL SALES
    GROUP BRINGS MORE THAN TWENTY FOUR YEARS OF EXPERIENCE TO NEW ROLE AT REX
    STORES -

Dayton, Ohio (October 12, 2005) -- REX Stores Corporation (NYSE:RSC), a
specialty retailer of consumer electronic products and appliances, announced
today that, effective October 11, 2005, it has named David L. Bearden, 55,
President and Chief Operating Officer.

Mr. Bearden brings over 24 years of diverse consumer electronics industry
experience to his new role at REX. As President and COO, Mr. Bearden will have
involvement in all facets of REX Stores' retail operations including buying,
inventory management and merchandising strategy, and store development, among
other focus areas.

During the course of his career, David L. Bearden has held several senior
management positions at Panasonic Company, one of the world's largest
manufacturers of consumer electronic products. From 2002 to 2004 Bearden was
President and Chief Operating Officer of Panasonic's National Sales Group and
most recently served as Group President of Panasonic's Consumer Electronics
Sales Group. In these capacities he had full responsibility for Panasonic's $4.2
billion consumer product businesses, which markets its product through mass
merchant, specialty retail, office supply and Internet sales channels. His
responsibilities also included sales, marketing and channel development, credit
and supply chain management for the U.S. market.


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REX STORES, 10/12/05                                               page 2


Commenting on the appointment, Stuart Rose, Chairman and Chief Executive
Officer, stated, "David brings a broad range of management skills, experience
and extensive industry knowledge to his role at REX Stores. His success with one
of the industry's largest consumer electronics companies is an excellent match
for REX, and we believe that David will contribute significantly to our retail
operations. In addition, David's appointment will allow me to devote additional
time to pursue new investment opportunities for REX in the energy sector. In the
seven years since our first synthetic fuel investment, REX has derived
significant financial benefits from this area, enabling the Company to reduce
long-term debt, repurchase shares and strengthen our balance sheet."

David Bearden commented on his appointment, "As a former supplier to REX, I have
been impressed with the Company's role in the markets it serves and its
efficiency as an operator. I am very pleased to join Stuart Rose and his team at
this point in the Company's development and look forward to an exciting future
with REX."

David Bearden holds a Masters of Business Administration degree in marketing
from DePaul University and earned a BSBA in Industrial Management from Roosevelt
University.

REX Stores Corporation is a leading specialty retailer of consumer electronic
products and appliances. As of July 31, 2005, the Company operated 228 stores in
37 states under the trade name "REX."

This news announcement contains 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 among other things: the highly competitive
nature of the consumer electronics retailing industry, changes in the national
or regional economies, weather, the effects of terrorism or acts of war on
consumer spending patterns, the availability of certain products, technological
changes, new regulatory restrictions or tax law changes relating to the
Company's synthetic fuel investments, the fluctuating amount of quarterly
payments received by the Company with respect to sales of its partnership
interest in a synthetic fuel investment, and the uncertain amount of synthetic
fuel production and tax credits received from time to time from the Company's
synthetic fuel investments.

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