Abbey J. Butler and Melvyn J. Estrin Named Co-Chairmen of the Board and Co-Chief Executive Officers of Phar-Mor

Daniel H. Levy and Monroe Osterman Elected to Phar-Mor's Board of Directors

             Phar-Mor to Hold First Annual Shareholders' Meeting

YOUNGSTOWN, Ohio, Sept. 29 /PRNewswire/ -- Phar-Mor, Inc. (Nasdaq-NNM: PMOR) announced today that Abbey J. Butler and Melvyn J. Estrin have been appointed Co-Chairmen of the Board and Co-Chief Executive Officers of Phar-Mor.

Mr. Butler and Mr. Estrin are currently Co-Chairmen of the Board and Co-Chief Executive Officers of Avatex Corporation, which holds 39.1% of Phar-Mor's common stock.

Mr. Butler is also a managing partner of Centaur Partners, L.P., and President and director of C.B. Equities Corp., a private investment company. In addition, he serves as a director and member of the Executive Committee of GrandBanc, Inc. and as a director and member of the Executive Committee of Carson, Inc. and is a director of UroHealth Systems, Inc.

Mr. Estrin also holds a managing partner position at Centuar Partners, L.P., and is Chairman of the Board and Chief Executive Officer of Human Service Group, Inc. Mr. Estrin serves as a director and member of the Executive Committee of GrandBanc, Inc., and is a director of Washington Gas Light Company, UroHealth Systems, Inc., and Carson, Inc.

Mr. Butler and Mr. Estrin also announced that David Schwartz will remain as President and Chief Operating Officer of the Company. In that capacity, he will continue to be responsible for Phar-Mor's day-to-day operations.

"Dave Schwartz has done an outstanding job of running Phar-Mor since joining the Company in 1993 and we are delighted that he will continue to lead Phar-Mor on a day-to-day basis," Mr. Butler and Mr. Estrin said. "Under Dave's leadership, Phar-Mor has successfully emerged from Chapter 11, developed two new store formats, revamped its marketing strategy, and began the process of opening new stores as well as remodeling and remerchandising existing stores. We look forward to working closely with him in the future."

Phar-Mor also announced the election of Daniel H. Levy and Monroe Osterman to the Company's Board of Directors. Their election fills the two spots left open by the recent resignations of Robert Haft and Linda Haft as directors of Phar-Mor. Daniel H. Levy currently works as a consultant to retailers. Previously, Mr. Levy was Chairman and Chief Executive Officer of Conrans, a 17-store operation based in New York. Prior to his position at Conrans, Mr. Levy served as Vice Chairman and Chief Operating Officer of Montgomery Ward in Chicago, Illinois and previously served in various executive capacities with Kaufmann's, Gimbel's and Bloomingdale's.

Monroe Osterman is the current President of Gala Trading Corporation, an investment company specializing in large purchases of diamonds from Europe. In the past, he has served as president of Paras USA and Bermont Corporation and was also a partner at J. Winston & Company, an importing and merchandising company.

The Company also announced that its first annual meeting of shareholders will occur on Wednesday, January 28, 1998 at 9:30 a.m. in the Watergate Hotel, Washington, D.C. Shareholders of record at the close of business on December 2, 1997 will be entitled to formal notice of and to vote at the annual meeting, or any adjournment thereof. Shareholder proposals intended to be presented at the annual meeting must be received by the Company for inclusion in its Proxy Statement and form of proxy relating to that meeting by Friday, October 31, 1997.

Phar-Mor is a retail drug store chain operating 104 stores in 19 states with annual revenues of approximately $1.1 billion. The Company's common stock is traded on the Nasdaq National Market under the symbol "PMOR".

SOURCE Phar-Mor, Inc.

    -0-                             09/29/97

/CONTACT: Gary Holmes of Phar-Mor, 212-484-7736/

(PMOR)

CO: Phar-Mor, Inc. ST: Ohio IN: MTC REA SU: PER

DY -- NYM128 -- 7636 09/29/97 12:56 EDT http://www.prnewswire.com