Dutch Ahold Subsidiary Etos Acquires Boots Drugstores in the Netherlands.

Business Editors

ZAANDAM, The Netherlands--(BUSINESS WIRE)--Aug. 17, 2000

Royal Ahold (NYSE: AHO), the international food provider, today announced that Etos, its Dutch health & beauty care store chain, has reached agreement to acquire the 17 Dutch outlets of British drugstore chain Boots. Effective November 6, the Ahold subsidiary will also stock selected Boots private label products. Boots has annual sales in The Netherlands of around Euro 18 million. The stores can be found in attractive locations in several Dutch cities, including Amsterdam. The transaction will substantially strengthen the market position of Etos. Most Boots stores will be remodeled into the Etos format by end 2000. The Ahold subsidiary has more than 420 stores in The Netherlands with annual sales of around Euro 400 million.

Comments by Etos CEO John van der Ent

`I'm very enthusiastic about this transaction. It provides Etos with additional knowledge in the health & beauty market and extends our product line through the quality goods we gain from Boots. The UK-based chain is well known for its excellent private label products that generate approximately 40% of its British sales. Our customers will now be able to find Boots products in Etos stores. The private label items blend perfectly with our broad range and innovative strategy launched this year, giving us an important differentiator in the highly competitive Dutch market.'

Comments by Boots director Jon Gladstone

`While we are winding down our retail activities in The Netherlands, we are opening up the market place further by enabling many more customers to be able to purchase popular Boots private label products at over 400 Etos stores throughout the country.'

Effective November 6, Etos will officially absorb the 400 staff previously employed by Boots stores in The Netherlands. Etos will accept all existing employment contracts unconditionally. Associates, the Works Councils, trade unions and competition authorities have been informed.

Ahold acquired the Etos chain in 1974. Since 1996, Etos has more than doubled the number of stores and sales. In 1999, total sales amounted to Euro 348 million, with 420 stores operational. By end 2001, Etos expects to have up to 500 stores with sales of approximately Euro 450 million.

In addition to its listing on the New York Stock Exchange (NYSE: AHO), Ahold's shares are trading on the Amsterdam Exchanges and on the Swiss Exchange. Additional information is available on Ahold's website: http://www.ahold.com

Royal Ahold press releases may contain `forward-looking' statements. Actual results may differ from such statements as they may have been influenced by factors beyond the company's ability to control.