Fred's Names John Foley Executive Vice President of Store Operations

MEMPHIS, Tenn. (October 7, 2015) — Fred's, Inc. (NASDAQ: FRED) today announced that it has named John Foley as the Company's Executive Vice President of Store Operations, effective October 7, 2015. Mike Holligan, who formerly served in this capacity, will move to an open position of Regional Vice President of Store Operations.

Commenting on the announcement, Jerry Shore, Chief Executive Officer, said, "We are excited about the experience that John Foley brings to our company. John's addition will extend the momentum we have developed in store operations and will further strengthen the talent of our management team, one of the key steps we have outlined that will help position Fred's to drive profitability and grow its convenience/pharmacy-centric model. We are grateful for the sacrifices and contributions Mike Holligan has made during this past year in leading all store operations."

Foley brings to Fred's more than 30 years of experience in retail pharmacy chain experience. For the past nine years, he was Corporate Operations Vice President at Walgreen's, responsible for the Eastern Division, which in 2014 accounted for approximately $20 billion in revenue from more than 2,500 retail pharmacies, health care clinics, and specialty pharmacy units. Prior to this role with Walgreen's, Foley served as a District Manager for six years and was a Store Manager for 11 years.

Fred's, Inc. and subsidiaries operate 661 discount general merchandise stores and three specialty pharmacy-only locations in 15 states in the southeastern United States. Included in the store count are 19 franchised locations. Also, there are 384 full service pharmacy departments located within the Company's stores. For more information about the Company, visit Fred's website at www.fredsinc.com.