A RECORD YEAR FOR THE JEAN COUTU GROUP.

MONTREAL--(BUSINESS WIRE)--July 26, 1995--JEAN COUTU GROUP (PJC)(ME,TSE:PJC.A) THE JEAN COUTU GROUP (PJC) Inc. today announced the results of its fiscal year ended May 31, 1995. Its sales and other revenues have increased by 42.6 per cent to $1,273,904,000, compared with $893,549,000 during the previous fiscal year. The strong increase in revenues stems from the acquisition, on October 31, 1994, of the 221 Brooks Drug Stores in the United States. This acquisition, which provided the Jean Coutu Group with ownership of New England's second largest drugstore chain, has more than quadrupled the revenues generated by the Company's U.S. operations, which have reached $487.1 million, compared with $112.5 million one year earlier.

The Company's cost structure was substantially modified as a result of the acquisition of the Brooks network, among other things in terms of depreciation, amortization and interest expenses, which have posted a total increase of $12.8 million. After accounting for these expenses, the Jean Coutu Group has posted earnings before income taxes of $68,119,000, an increase of 14.9 per cent over the earnings before unusual items and income taxes achieved during the previous fiscal year. After deduction of unusual items incurred in 1993-1994 and of income taxes, the Company's net earnings increased by 89.6 per cent, reaching $45,203,000 in 1994-1995, compared with $23,845,000 in 1993-1994. Earnings per share have increased in the same proportion to $0.86, as against $0.45 last year. Finally, cash flow totalled $64.2 million, or $1.22 per share, an increase of 75.5 per cent over the previous fiscal year.

With the acquisition of the 221 Brooks Drug Stores, the Jean Coutu Group now ranks among North America's 15 largest pharmaceutical and parapharmaceutical retail networks. As at May 31, 1995, the Group's network was composed of 466 stores, with 227 Canadian franchises and 239 U.S.-based corporate stores. During the last fiscal year, the network generated total retail sales of almost $1.9 billion. The Canadian franchised stores have achieved sales of $1.4 billion, a 4.5 per cent growth over last year, while the U.S. drugstores have posted sales of CDN$480.3 million, which includes the contribution of the Brooks stores for only seven months of the fiscal year.

Financial position __________________

The acquisition of the Brooks Drug Stores network, at a cost of CDN$205 million, was partly financed through the Company's long- term debt, to the extent of $100 million, with the remaining portion financed through the working capital. This transaction had a significant impact on the Group's balance sheet, which has seen its total assets increase by 71 per cent to reach $616.3 million as at May 31, 1995. Given the Jean Coutu Group's low debt level at the time of the acquisition, the Company continues to benefit from a solid and well-capitalized financial position: as at May 31, 1995, its long-term debt stood at $94.1 million, for a ratio of 0.33:1 on shareholders' equity of $285.8 million. The total bank indebtedness represented $185 million, for a ratio on shareholders' equity of 0.65:1.

Outlook for 1995-1996 _____________________

Management of the Jean Coutu Group expects a significant growth in revenues, in earnings and in cash flow in 1995-1996, since the Company will benefit from the contribution of the Brooks network for a full period of twelve months, compared to seven for the previous fiscal year. The growth will also be supported by the improvement in the Canadian network's performance, as already witnessed during recent months, as well as from the acquisition of additional stores and the increase in sales per store in the U.S.

"We aim to add approximately 20 new stores per year, in order to have in excess of 300 drugstores in the United States within three years," said Francois Jean Coutu, President and Chief Operating Officer. "We will also seek to optimize all the zones of synergy that exist between our Canadian and U.S. operations, in the area of purchasing among others, in order to fully take advantage of our strong position in the Northeast".

Dividend ________

The Board of Directors of The Jean Coutu Group has declared a quarterly dividend of $0.03 per share, which will be paid on August 24, 1995 to all holders of subordinate Class A multiple vote shares as well as to holders of Class B shares, of record as at August 10, 1995. -0-

THE JEAN COUTU GROUP (PJC) INC.
CONSOLIDATED EARNINGS
Years ended May 31, 1995 and 1994
(thousands of dollars except for per share amounts)

                                            1995          1994
                                      __________     _________

SALES                                 $1,155,661      $782,489

OTHER REVENUES                           118,243       111,060
                                      __________     _________

                                       1,273,904       893,549
                                      __________     _________

EXPENSES

Cost of goods sold, general and
 operating expenses                    1,175,600       816,836
Depreciation and amortization             18,530        12,861
Interest on long-term debt                 7,478         2,821
Other interest                             4,177         1,740
Unusual items                                  -        19,900
                                      __________     _________
                                       1,205,785       854,158
                                      __________     _________

EARNINGS BEFORE INCOME TAXES              68,119        39,391

INCOME TAXES                              22,916        15,546
                                      __________     _________

NET EARNINGS                             $45,203       $23,845
                                      __________     _________
                                      __________     _________

EARNINGS AND FULLY DILUTED
 EARNINGS PER SHARE                        $0.86         $0.45
                                      __________     _________
                                      __________     _________

WEIGHTED AVERAGE OF OUTSTANDING
 SHARES                               52,547,028    52,498,674

CONTACT: The Jean Coutu Group (PJC) Inc.

Jean Coutu, 514/646-9760