Stage Stores Board Declares Quarterly Dividend; Doubles Quarterly Amount to $0.05 Per Share

Stage Stores, Inc. (Nasdaq:STGS) reported today that, at
its Annual Shareholders Meeting held today at its headquarters in
Houston, Texas, James Scarborough, Chairman and Chief Executive
Officer, announced that the Company's Board of Directors has declared
a quarterly cash dividend of 5.0 cents per share, which is twice the
amount of the Company's previous quarterly cash dividend of 2.5 cents
per share. The dividend is payable on the Company's common stock on
June 28, 2006 to shareholders of record at the close of business on
June 13, 2006.
   Stage Stores, Inc. brings nationally recognized brand name
apparel, accessories, cosmetics and footwear for the entire family to
small and mid-size towns and communities through 561 stores located in
31 states. The Company operates under the Stage, Bealls and Palais
Royal names throughout the South Central states, and under the Peebles
name throughout the Midwestern, Southeastern, Mid-Atlantic and New
England states. In addition, on February 27, 2006, the Company
purchased B.C. Moore & Sons, Inc., and acquired 78 retail locations
situated in the Southeast. The Company currently plans to convert 69
of the acquired stores to its Peebles name and format, in phases,
beginning in early August. For more information about Stage Stores,
visit the Company's web site at www.stagestores.com.