A customer-driven distributor of consumable basics Credit Suisse First Boston June 17, 2003 New York, NY Dollar General Corporation……. Serving Others

A customer-driven distributor of consumable basics Serving Others Jim Hagan Executive Vice President and Chief Financial Officer

A customer-driven distributor of consumable basics Forward-Looking Information and Non-GAAP Disclosures Certain comments made during this meeting may contain forward-looking information. The words “believe,” “anticipate,” “project,” “plan,” “expect,” “estimate,” “objective,” “forecast,” “goal,” “intend,” “will likely result,” or “will continue,” and similar expressions, generally identify forward-looking statements. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected by, or implied in, the forward-looking statements. A number of factors may result in actual results differing from such forward-looking information, including but not limited to those described in our most recent Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the quarter ended May 2, You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today’s date. The Company disclaims any obligation to publicly update or revise any forward-looking statements made today to reflect events or circumstances occurring after today’s date or to reflect the occurrence of unanticipated events. We will present certain financial information not derived in accordance with GAAP, such as selling, general and administrative expenses, net income and earnings per share, which exclude the impact of restatement-related items, and our adjusted effective tax rate. The slides used here today, and reproduced on our website located at will show the reconciliation of this information to the most comparable GAAP measure. The reasons why management believes this information is useful to investors, and the additional purposes for which management uses this information are disclosed in our Form 10-Q for the quarter ended May 2, 2003, filed with SEC on May 29, 2003.

A customer-driven distributor of consumable basics (Dollars in millions except per share amounts) Reconciliation of Non-GAAP Disclosures

A customer-driven distributor of consumable basics As of 1/31/03

A customer-driven distributor of consumable basics As of 1/31/03

A customer-driven distributor of consumable basics Average store 6,700 square feet SKUs Approximately 4,075 core SKUs

A customer-driven distributor of consumable basics Average customer purchase: $8.50 Average items per transaction: 5.7 Average price per item: $ Transaction Data

A customer-driven distributor of consumable basics Merchandise categories

A customer-driven distributor of consumable basics Annual Sales

A customer-driven distributor of consumable basics Net Income

A customer-driven distributor of consumable basics Balance Sheet Highlights

A customer-driven distributor of consumable basics 1Q Earnings Results (Dollars in millions except per share amounts) (in millions, except per share amounts)

A customer-driven distributor of consumable basics 1Q Consolidated Statements of Income (Dollars in millions except per share amounts)

A customer-driven distributor of consumable basics 1Q Consolidated Statements of Income (Dollars in millions except per share amounts)

A customer-driven distributor of consumable basics 1Q Consolidated Statements of Income (Dollars in millions except per share amounts)

A customer-driven distributor of consumable basics 1Q Consolidated Statements of Income (Dollars in millions except per share amounts)

A customer-driven distributor of consumable basics 1Q Consolidated Statements of Income (Dollars in millions except per share amounts)

A customer-driven distributor of consumable basics Opened 223 new stores, closed 7 stores, YTD 2003 capital expenditures - $30.1 million As of May 2, 2003: Cash - $75.9 million Debt - $342.6 million First Quarter 2003 Cash Flow Highlights

A customer-driven distributor of consumable basics Total inventory of $1.20 billion at May 2, 2003, up 5.8% Inventory turns -3.91x in 2002 vs 3.52x in 2001 Balance Sheet Highlights - Inventory

A customer-driven distributor of consumable basics Miscellaneous Topics of Interest 12 million share repurchase authorization in March – no shares repurchased as of May 29 SEC investigation

A customer-driven distributor of consumable basics Serving Others David Perdue Chairman & Chief Executive Officer

A customer-driven distributor of consumable basics 2002 Key Accomplishments Opened 622 stores Completed rollout of new registers and VSAT Converted Fulton DC to dual sortation Opened Florida Import Center in Alachua Implemented the “Seven Habits of a Highly Effective Dollar General Store” Reduced excess inventories

A customer-driven distributor of consumable basics 2002 Key Accomplishments (Continued) Completed UPC inventories in all stores Launched aggressive shrink control program Installed Arthur merchandising system Added coolers to 956 stores Thoroughly tested store auto replenishment system Opened 18 training centers

A customer-driven distributor of consumable basics 1.Open 650 new stores 2003 Initiatives

A customer-driven distributor of consumable basics 1.Open 650 new stores 2.Improve store consistency and productivity 2003 Initiatives

A customer-driven distributor of consumable basics 1.Open 650 new stores 2.Improve store consistency and productivity 3.Reduce shrink 2003 Initiatives

A customer-driven distributor of consumable basics Inventory Shrink Initiatives Asset protection team located in major markets with higher shrink issues Internal auditors dedicated to shrink Installed 435 closed circuit TV’s Installed over 2,100 security alarms Shrink tip hotline

A customer-driven distributor of consumable basics 1.Open 650 new stores 2.Improve store consistency and productivity 3.Reduce shrink 4.Move forward with cooler program 2003 Initiatives

A customer-driven distributor of consumable basics 1.Open 650 new stores 2.Improve store consistency and productivity 3.Reduce shrink 4.Move forward with cooler program 5.Implement automatic replenishment in up to 2,500 stores 2003 Initiatives

A customer-driven distributor of consumable basics Auto Replenishment 13% of SKUs in all stores 100% of core SKUs in 40 stores for over a year –Better in-stocks –Lower inventory levels Currently in over 540 stores Plan 2,500 by year end

A customer-driven distributor of consumable basics 1.Open 650 new stores 2.Improve store consistency and productivity 3.Reduce shrink 4.Move forward with cooler program 5.Implement automatic replenishment in up to 2,500 stores 6.Test acceptance and impact of credit and debit cards 2003 Initiatives

A customer-driven distributor of consumable basics 1.Open 650 new stores 2.Improve store consistency and productivity 3.Reduce shrink 4.Move forward with cooler program 5.Implement automatic replenishment in up to 2,500 stores 6.Test acceptance and impact of credit and debit cards 7.Locate site for distribution center 2003 Initiatives

A customer-driven distributor of consumable basics 1.Improve consistency of in-store execution Immediate Focus

A customer-driven distributor of consumable basics 1.Improve consistency of in-store execution 2.Increase merchandising productivity Immediate Focus

A customer-driven distributor of consumable basics Arthur Merchandising System Single source for merchandising data Sales and receipts loaded daily from POS and warehouse system data 2003 merchandising plan for sales by week for 550 classes Analysis and planning by groups of similar stores Ability to cluster stores based on sales trends

A customer-driven distributor of consumable basics 1.Improve consistency of in-store execution 2.Increase merchandising productivity 3.New store development Immediate Focus

A customer-driven distributor of consumable basics 1.Improve consistency of in-store execution 2.Increase merchandising productivity 3.New store development 4.Leverage supply chain/IT investments Immediate Focus

A customer-driven distributor of consumable basics 1.Improve consistency of in-store execution 2.Increase merchandising productivity 3.New store development 4.Leverage supply chain/IT investments 5.Focus on the customer Immediate Focus

A customer-driven distributor of consumable basics Credit Suisse First Boston June 17, 2003 New York, NY Dollar General Corporation……. Serving Others