Carr Gottstein Foods Announces Expiration of Tender Offer and Closing of Note Financing.

Gottstein Foods Co. (NYSE:CGF), the largest food and drug retailer in Alaska, today announced that the Company has completed its cash tender offer for up to 7,500,000 shares of common stock of the Company at $11.00 per share. The offer, proration period and withdrawal rights expired at 1:00 p.m., New York City time on Wednesday, November 15, 1995. Preliminary figures indicate that approximately 15,373,148 shares, including approximately 1,052,713 shares subject to guarantee of delivery, were tendered and not withdrawn. The Company has accepted for payment 7,500,000 shares validly tendered and not withdrawn prior to the expiration of the offer. Preliminary proration calculations indicate that 8,729 shares representing odd lot shares have been tendered and accepted for payment and that approximately 48.76% of non-odd lot shares tendered, or approximately 7,491,271 shares, will be accepted for payment. In connection with the tender offer, the Company completed its previously announced $100,000,000 unsecured 12% Senior Subordinated Note offering.

Carr Gottstein Foods operates 39 stores in Anchorage, Fairbanks, Juneau, Ketchikan, the Kenai Peninsula and other Alaska communities, as well as the state's only full-line food warehouse and distribution center, and in addition operates Alaska's largest freight company. Annual revenues in 1994 were $577.1 million

CONTACT: Don Anderson

Senior Vice President and CFO 

Carr Gottstein Foods Co.

[phone]

or

Mary Ann Dunnell

Robinson Lerer Sawyer Miller

[phone]