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HANNAFORD ANNOUNCES PLANS TO SELL A MAJORITY OF ITS WELLBY SUPER DRUG STORES TO RITE AID CORPORATION

 HANNAFORD ANNOUNCES PLANS TO SELL A MAJORITY OF ITS WELLBY SUPER
 DRUG STORES TO RITE AID CORPORATION
 SCARBOROUGH, Maine, May 5 /PRNewswire/ -- Hannaford Bros. Co. (NYSE: HRD) Northern New England's largest food retailer announced today that an agreement has been signed with Rite Aid Corporation (NYSE: RAD) of Camp Hill, Penn., for the sale of most of the stores in Hannaford's Wellby Super Drug store chain. The sale of this wholly owned subsidiary, started by Hannaford in 1973, will include 34 of the Wellby Super Drug stores located in Maine and New Hampshire. Wellby currently operates 41 stores in three states. Rite Aid operates 2,450 drug stores in 22 eastern states and the District of Columbia.
 Wellby drug stores in Bangor (Westgate Mall), Brunswick, North Windham, Oxford and Standish, Maine; Portsmouth, N.H; and Burlington Vt., will be retained by Hannaford and are not included in the sale. In addition to the drug stores operated by Wellby, Hannaford and other of its subsidiaries operate 33 pharmacies within supermarkets and combination stores. It is the company's intention to continue to build more combination food/drug stores and, over time, the drug stores being retained may be combined into future combination stores.
 The closing on this sale is expected to occur within the next 60 days. The sale price was not disclosed. The agreement provides that all retail store employees will be offered positions with Rite Aid.
 "Over the years, Wellby Super Drug has contributed very positively to the company's rapid growth and success. However, growing two distinct businesses has become increasingly challenging," said James L. Moody, Jr., chairman and chief executive officer. "As we are currently structured, it's difficult to provide the dedicated human and financial resources that both businesses require to do well. It makes good business sense to sell these stores to an operator who can best realize the drug store chain's full potential."
 Hugh G. Farrington, president and chief operating officer, said "The decision to sell Wellby was a difficult one. The changing retail environment prompted us to re-evaluate how we structure and run our business. The sale of these stores will allow us to concentrate on one primary business."
 During 1991, Wellby sales were $101 million, or 5 percent of Hannaford's consolidated sales and other revenues. These sales came from the 34 stores to be sold, the seven to be retained by Hannaford and one additional store that was closed and combined into a combination store in January 1992. At the end of 1991, Wellby employed 900 associates.
 -0- 5/5/92
 /CONTACT: James L. Moody, chairman and chief executive officer of Hannaford Bros., 207-883-2911/
 (HRD RAD) CO: Hannaford Bros. Co. ST: Maine IN: REA SU:


TM -- NE012 -- 6446 05/05/92 10:17 EDT
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Publication:PR Newswire
Date:May 5, 1992
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