Duckwall-ALCO Stores Terminates Agreement With William Blair & Company

ABILENE, Kan., March 31, 2008 (PRIME NEWSWIRE) -- Duckwall-ALCO Stores, Inc.
(Nasdaq:DUCK) has announced that the agreement it had entered into on January 9,
2008 with William Blair & Company, LLC has been terminated. The agreement,
designed and entered into by the Company prior to the settlement of the
threatened proxy contest, no longer serves its intended purpose.

Royce Winsten, Duckwall-ALCO's Chairman of the Board, stated, "We at
Duckwall-ALCO Stores wish to thank the professionals at William Blair & Company
for the good work they have done and contributions they have made to the
Company's ongoing drive to improve its financial performance."

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 260 stores across 22 states, Duckwall-ALCO Stores is
proud to have continually provided excellent products at good value prices to
its customers for 107 years. To learn more about Duckwall-ALCO Stores, Inc.
visit www.ALCOstores.com.

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CONTACT: Duckwall-ALCO Stores, Inc.
Jon A. Ramsey, Vice President-Controller, Interim Chief
Financial Officer
785-263-3350 x221
jramsey@ALCOstores.com
www.ALCOstores.com

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