Dollar General Corporation STOCKHOLDER PROPOSAL #1 A stockholder, Calvert Asset Management Company, Inc., 4550 Montgomery Ave., Bethesda, Maryland 20814, a holder of 116,890 shares of the Company's common stock, has notified the Company of its intention to propose the following resolution at the Annual Stockholders' Meeting.  Proxy regulations require the Company to present to stockholders the proposed resolution and supporting statement.  Following the stockholders proposed resolution and supporting statement is Dollar General's Board of Directors' response.  The stockholder recommends you vote for this proposal; Dollar General's Board of Directors unanimously recommends you vote against this proposal.  The text of the proposed resolution from Calvert Asset Management Company, Inc. is as follows:

WHEREAS,  the high cost of legal expenses are both the social and financial consequences of potential discrimination allegations on the corporate image, for example, Home Depot's $104 million settlement and Texaco's $170 million settlement, has placed this issue high upon a priority list for shareholders.

WHEREAS,  over 150 major employers publicly report on work diversity and EEO information in annual reports to shareholders or public interest booklets.

WHEREAS,  a clear corporate policy opposing all forms of discrimination is a sign of responsible corporate leadership and of important significance to shareholders and employees.

WHEREAS,  in 1996, then Secretary of Labor and Chairperson of the Glass Ceiling Commission, Robert Reich, and a 21-member Glass Ceiling Commission released a report called "Good for Business: Making Full use of the Nation's Human Capital."  This report stated that major EEO problems exist with many large companies and that diversity in the workplace has a positive impact on a corporation's bottom-line.

WHEREAS,  we believe that diversity is essential to the company's future competitiveness.

WHEREAS,  we are asking management to report to shareholders and employees the progress Dollar General Corporation has made and the obstacles it still has to overcome on EEO issues relevant to the company.

RESOLVED,  a report shall be prepared at reasonable cost, by September 1999, excluding confidential information, and shall focus on the areas mentioned below.  The company will inform all shareholders and employees of the availability of this report in its next annual report.

• A chart identifying employees according to their race and gender for each of the reporting categories identified by the Equal Employment Opportunity Commission for 1996, 1997, and 1998, listed either in numbers or percentages for each category.

• Report on the race, gender and compensation of senior management.

• A summary description of corporate policies and initiatives to attract and hire women and minority job applicants and advance equal opportunity for women and minorities among management.

To support improved disclosure, we urge our fellow shareholders to vote your proxy FOR this resolution.