Duckwall-ALCO Stores Hires William Blair & Company, LLC as Financial Advisor

ABILENE, Kan., Jan. 22, 2008 (PRIME NEWSWIRE) -- Duckwall-ALCO Stores, Inc.
(Nasdaq:DUCK) reported today that it has hired William Blair & Company, LLC to
act as the Company's financial advisor.

In 2005, Duckwall-ALCO executives announced the initiation of a strategic
turnaround plan designed to make significant improvements in the Company's
financial performance and to increase shareholder value. Duckwall-ALCO's
management has made significant improvements to its operations and continues to
take actions to increase the Company's value for its shareholders. William Blair
& Company has been hired to enhance management's decision-making process and the
Company's external communications.

Duckwall-ALCO's strategic plan included a complete overhaul of its Information
Technology (IT) system along with initiatives to increase gross margin, reduce
inventory and positively impact other key retail metrics. In its January 10,
2008 press release announcing December sales, the Company noted that it is
realizing the benefits of its IT investment and other initiatives.

Despite a difficult retailing environment and opening 18 new stores in 2007, the
Company's fiscal month end December 2008 total merchandise inventory, including
comparable stores, non comparable stores and warehouse was approximately $5.0
million, or 3.7%, below prior year. In addition, the Company's ALCO same-store
gross margin percentage has increased 120 basis points fiscal year to date,
through fiscal month end December 2008, compared to prior year to date.

As Duckwall-ALCO's financial advisor, William Blair & Company's role will be to
assist the Company's management team with developing additional strategies to
strengthen its competitive position, increase shareholder value and better
communicate its value proposition to shareholders and other stakeholders.

About Duckwall-ALCO Stores, Inc.

Duckwall-ALCO Stores, Inc. is a regional retailer that specializes in meeting
the needs of smaller, underserved communities throughout the central United
States. The Company offers an exceptional selection of fashionable merchandise,
quality products and recognized brand names at reasonable prices. Its specialty
is delivering those products with the friendly, personal service its customers
have come to expect. With 262 stores across 22 states, Duckwall-ALCO is proud to
have continually provided excellent products at good value prices to its
customers for 106 years. To learn more about Duckwall-ALCO Stores, Inc., visit
the Company's website at www.ALCOstores.com.

Forward-looking statements

This press release contains forward-looking statements, as referenced in the
Private Securities Litigation Reform Act of 1995 ("the Act"). Any
forward-looking statements are made by the Company in good faith, pursuant to
the safe-harbor provisions of the Act. These forward-looking statements reflect
management's current views and projections regarding economic conditions, retail
industry environments, and Company performance. Factors, which could
significantly change results, include but are not limited to: sales performance,
expense levels, competitive activity, interest rates, changes in the Company's
financial condition, and factors affecting the retail category in general.
Additional information regarding these and other factors may be included in the
Company's quarterly 10-Q filings and other public documents, copies of which are
available from the Company on request and are available from the United States
Securities and Exchange Commission.

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CONTACT: Duckwall-ALCO Stores, Inc.
Donny R. Johnson
Chief Financial Officer, Senior Vice President
(785) 263-3350 x164
djohnson@ALCOstores.com
www.ALCOstores.com

Hagen and Partners
Debbie Hagen
(913) 652-6547
dhagen@hagenandpartners.com