THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Family Dollar Stores, Inc. (FDO)

11/30/2005 Proxy Information

Mark R. Bernstein, the Lead Director of the Company, was a partner in the law firm of Parker, Poe, Adams & Bernstein L.L.P. until his retirement in January 2002, and currently is Of Counsel to the law firm. Prior to fiscal 2005, the Company had paid legal fees to the law firm for legal services.

During fiscal 2005, the Company purchased apparel for use by the Company’s store associates and other merchandise, at a cost of $1,210,790, from a company owned by Eric Lerner, Howard R. Levine’s brother-in-law. The Company expects to engage in similar transactions during fiscal 2006. The Company believes that these purchases were made on terms comparable to those that would be obtained in independent arms-length transactions with unrelated parties.

Pursuant to a Retirement Agreement dated as of September 30, 2002, between the Company and Mr. Leon Levine, the former Chairman of the Board of the Company and the father of Howard R. Levine, the Company provides certain office space to Mr. Leon Levine (or, in the event of his death, to his wife) and to certain of his assistants and/or advisors; continuing health care coverage for Mr. Leon Levine and certain of his family members; Company-paid personal liability umbrella insurance coverage; and use of the Company’s airplanes for up to 30 hours per year. The Company accrued approximately $1,285,000 in fiscal 2002 for the total value of these benefits to be received over the term of the Agreement.

11/29/2004 Proxy Information

Legal services were rendered to the Company during fiscal 2004 and are currently being rendered to the Company by Parker, Poe, Adams & Bernstein L.L.P. Mark R. Bernstein, the Lead Director of the Company, was a partner in the law firm until his retirement in January 2002 and currently is Of Counsel to the law firm. The Company paid the law firm $10,512 in fiscal 2004, $12,257 in fiscal 2003 and $53,080 in fiscal 2002 for legal services. The Board of Directors has considered the relationship of Mr. Bernstein and the law firm to the Company. Based on the nominal amounts paid by the Company to the law firm, the small percentage of these payments relative to the total revenues of the law firm and the retirement of Mr. Bernstein from the law firm, the Board of Directors has determined that Mr. Bernstein qualifies as an independent director.

During fiscal 2004 the Company purchased apparel for use by the Company's store associates and other merchandise at a cost of $1,181,222 from a company owned by Eric Lerner, Howard R. Levine's brother-in-law. The Company expects to engage in similar transactions during fiscal 2005. The Company believes that these purchases were made on terms comparable to those that would be obtained in independent arms-length transactions with unrelated parties.

Pursuant to a Retirement Agreement entered into as of September 30, 2002, between the Company and Mr. Leon Levine, the former Chairman of the Board of the Company and the father of Howard R. Levine, the Company provides certain office space to Mr. Leon Levine (or, in the event of his death, to his wife) and to certain of his assistants and/or advisors; continuing health care coverage for Mr. Leon Levine and certain of his family members; Company paid personal liability umbrella insurance coverage; and use of the Company's airplanes for up to 30 hours per year. The Company accrued approximately $1,285,000 in fiscal 2002 for the total value of these benefits to be received over the term of the Agreement.

11/26/2003 Proxy Information

Legal services were rendered to the Company during the fiscal year ended August 30, 2003, and are being rendered to the Company during the fiscal year ending August 28, 2004, by Parker, Poe, Adams & Bernstein L.L.P. Mark R. Bernstein, a director of the Company, was a partner in this law firm until his retirement in January 2002. The Company paid the law firm $12,257 in fiscal 2003, $53,080 in fiscal 2002 and $13,665 in fiscal 2001 for legal services. The Board of Directors has considered the relationship of Mr. Bernstein and the law firm to the Company. Based on the amounts paid relative to the total revenues of the law firm and the retirement of Mr. Bernstein from the law firm, the Board of Directors determined that Mr. Bernstein qualifies as an independent director.

The Company has purchased a variety of merchandise in the ordinary course of business from entities owned or represented by non-employee immediate family members of Leon Levine, the former Chairman of the Board of the Company, and Howard R. Levine, the Chairman of the Board and Chief Executive Officer of the Company, as follows: Leon Levine's brother, Sherman Levine has represented a number of vendors in the Company's purchase of merchandise at a cost of approximately $15.3 million in fiscal 2003. Howard R. Levine's brother-in-law, Eric Lerner, is the owner of a firm from which the Company purchased merchandise at a cost of approximately $723,315 in fiscal 2003.