Exhibit 99.1

The Bon-Ton Stores, Inc. Announces Quarterly Cash Dividend

    YORK, Pa.--(BUSINESS WIRE)--May 27, 2004--The Bon-Ton Stores, Inc.
(Nasdaq:BONT) today announced the Board of Directors declared a cash
dividend of 2 1/2 cents per share on the Class A Common Stock and
Common Stock of the Company payable July 15, 2004 to shareholders of
record as of July 1, 2004.
    James H. Baireuther, Vice Chairman and Chief Administrative
Officer, commented, "We are pleased to announce this cash dividend to
our shareholders. This represents the Company's fifth consecutive
quarterly dividend, which we believe, given our liquidity and strong
balance sheet, is an appropriate avenue of return to our shareholders.
Our Board of Directors will consider dividends in subsequent periods
as it deems appropriate."
    The Bon-Ton Stores, Inc. operates 142 department stores in 16
states, from the Northeast to the Midwest under the Bon-Ton and
Elder-Beerman names. The stores carry a broad assortment of quality
brand-name fashion apparel and accessories for women, men and
children, as well as distinctive home furnishings. The Bon-Ton and
Elder-Beerman stores provide high-quality merchandise at competitive
prices delivered with top-quality service in targeted markets. For
further information, please visit the investor relations section of
the Company's website at www.bonton.com/investor/home.asp.

    Statements made in this press release, other than statements of
historical information, are forward looking statements and are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause results to differ materially from those
set forth in these statements. Factors that could cause such
differences include, but are not limited to, risks related to retail
businesses generally, our ability to integrate the recently acquired
Elder-Beerman stores into our over-all operations, additional
competition from existing and new competitors, uncertainties
associated with opening new stores or expanding or remodeling existing
stores, the ability to attract and retain qualified management, the
dependence upon key vendor relationships and the ability to obtain
financing for working capital, capital expenditures and general
corporate purposes. Additional factors that could cause the Company's
actual results to differ from those contained in these forward looking
statements are discussed in greater detail in the Company's periodic
reports filed with the Securities and Exchange Commission.

    CONTACT: The Bon-Ton Stores, Inc.
             Mary Kerr
             Vice President
             Corporate Communications
             (717) 751-3071