Dollar General is a Fortune 500(R) discount retailer with 7,551 neighborhood stores as of April 29, 2005. Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices. The Company store support center is located in Goodlettsville, Tennessee
http://www.dollargeneral.com/

KKR Completes Acquisition of Dollar General Corporation
GOODLETTSVILLE, Tenn., Jul 06, 2007 (BUSINESS WIRE) -- Dollar General Corporation ("Dollar General") today announced the completion of its merger with affiliates of Kohlberg Kravis & Roberts & Co. L.P., GS Capital Partners, an affiliate of Goldman Sachs, Citi Private Equity, and other equity co-investors (collectively, the "Investors"). The total enterprise value of the transaction is approximately $7.3 billion. The transaction was approved by Dollar General's shareholders at a special meeting on June 21, 2007.
Pursuant to the terms of the merger agreement entered into on March 11, 2007, Dollar General's shareholders will receive $22.00 in cash for each share of Dollar General's common stock that they hold
Dollar General's common stock will cease to trade on the New York Stock Exchange ("NYSE") prior to the opening of trading on July 9, 2007. Under private ownership, Dollar General's common stock will no longer be listed on the NYSE

Buck Acquisition Corp. Announces Anticipated Dollar General Financing Plan
GOODLETTSVILLE, Tenn., Jun 11, 2007 (BUSINESS WIRE) -- Dollar General Corporation (NYSE: DG) (the "Company or "Dollar General") was advised today by Buck Acquisition Corp., a Tennessee corporation ("Buck"), of its anticipated financing plan relating to the merger (the "Merger") of Buck with and into Dollar General pursuant to the previously announced agreement and plan of merger entered into on March 11, 2007. Buck is indirectly controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. ("KKR").
After completion of the financing transactions, which are scheduled to close at the same time as the Merger, it is expected that the Company would have indebtedness of approximately $5.4 billion outstanding (including amounts undrawn under a revolving credit facility), consisting of:
-- new senior secured credit facilities with $2,430 million under a senior secured term loan facility and $1,000 million under a senior secured asset-based revolving credit facility (of which $302 million is anticipated to be drawn on the closing date);
-- new unsecured senior indebtedness of $1,350 million, anticipated to consist of $625 million of senior cash-pay notes and $725 million of senior pay-in-kind toggle notes;
-- new unsecured senior subordinated indebtedness of $550 million, anticipated to consist of senior subordinated cash-pay notes; and
-- approximately $68 million of certain of Dollar General's existing indebtedness which will be retained following the Merger.
In addition, after completion of the Merger and related financing transactions, it is anticipated that the Company would retain approximately $180 million of cash on its balance sheet and receive an equity contribution of $2,775 million from KKR and other private equity and third party investors. The financing plan assumes that all of the $200 million outstanding aggregate principal amount of Dollar General's 8 5/8% Notes due 2010 (the "Notes") will be tendered pursuant to the tender offer and related consent solicitation launched by Buck on June 4, 2007. To the extent that any Notes are not tendered, they will remain outstanding following completion of the Merger. 

Dollar General Reports First Quarter 2007 Earnings
GOODLETTSVILLE, Tenn., Jun 07, 2007 (BUSINESS WIRE) -- Dollar General Corporation (NYSE: DG) today reported net income of $34.9 million, or $0.11 per share, for the first quarter ended May 4, 2007, compared to net income of $47.7 million, or $0.15 per share, for the prior year first quarter ended May 5, 2006.
Net sales were $2.28 billion, a 5.8 percent increase over net sales of $2.15 billion for the first quarter of fiscal 2006. The increase in sales primarily reflects a same-store sales increase of 2.4 percent and the opening of 104 net new stores since the end of the prior year first quarter. This same-store sales increase in 2007 compares with 1.6 percent in the fiscal 2006 first quarter. Net sales in the quarter were aided by markdowns from retail taken in the 2007 first quarter and the 2006 fourth quarter, primarily in the seasonal, home and apparel categories, in connection with the Company's efforts to minimize the amount of inventory carried over from prior seasons and to allow for a greater mix of newer, fresher inventory going forward. The Company has made significant progress toward its goal of eliminating its historical packaway strategy by the end of fiscal 2007.
The Company's gross profit increased 8.3 percent to $633.1 million in the 2007 quarter from $584.3 million in the 2006 quarter. As a percent of sales, the gross profit rate increased by 66 basis points in the 2007 period as compared with the 2006 period due to a number of factors, including but not limited to: an increase in markups on purchases during the period; a reduction in receipts of highly consumables, which generally have lower average markups, during the 2007 period as compared to the 2006 period; and higher sales (as a percentage of total sales) in seasonal and basic clothing categories, which generally have higher average markups. These factors were partially offset by lower average markups on our beginning inventory in the 2007 period as compared with the 2006 period and an increase in our shrink rate. The gross profit rate was also unfavorably impacted by higher markdowns in the 2007 period, which were partially offset by a reduction of the lower of cost or market inventory impairment estimate at the end of the first quarter of 2007.
Selling, general and administrative ("SG&A") expenses increased from the prior year period by $74.7 million, to 25.4 percent of sales in the 2007 period from 23.4 percent in the 2006 period. This increase includes approximately $29.6 million of expenses relating to the Company's previously announced strategic real estate initiatives, including lease contract termination costs, incremental store labor and other expenses associated with the closing of 153 stores in the first quarter of 2007. In addition, SG&A in the 2007 period includes approximately $6.1 million of expenses, primarily legal and consulting fees, associated with the proposed Merger, discussed below. Also contributing to the increase in SG&A in 2007 over 2006, as a percent of sales, were store rent expense, hurricane-related insurance recoveries during the prior year period, health benefits costs due primarily to increased claims, store repairs and maintenance, and incentive compensation expense. These increases were partially offset by a reduction in workers' compensation insurance costs, primarily related to the impact of changes in estimates of loss development factors, and a decrease in depreciation expense.