CORRECTING and REPLACING Fred's Declares Quarterly Cash Dividend of $0.06 Per Share

First paragraph, second sentence of release dated May 22, 2015, should read: The dividend is payable on June 15, 2015, to shareholders of record as of June 2, 2015 (instead of The dividend is payable on June 15, 2015, to shareholders of record as of June 1, 2015).

The corrected release reads:

FRED'S DECLARES QUARTERLY CASH DIVIDEND OF $0.06 PER SHARE

Fred's, Inc. (NASDAQ: FRED) today announced that its Board of Directors has declared a quarterly cash dividend of $0.06 per share. The dividend is payable on June 15, 2015, to shareholders of record as of June 2, 2015.

Fred's, Inc. operates 665 discount general merchandise stores, including 19 franchised Fred's stores and three specialty pharmacy locations, in the southeastern United States. For more information about the Company, visit Fred's website at www.fredsinc.com.

Contacts:

Fred's, Inc.
Jerry A. Shore, 901-362-3733, Ext. 2217
Chief Executive Officer

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