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AMERICAN STORES ANNOUNCES EXECUTION OF LETTER OF INTENT TO SELL 74 JEWEL/OSCO STORES TO ALBERTSON'S

 AMERICAN STORES ANNOUNCES EXECUTION OF LETTER OF INTENT
 TO SELL 74 JEWEL/OSCO STORES TO ALBERTSON'S
 SALT LAKE CITY, Jan. 28 /PRNewswire/ -- American Stores Co. (NYSE: ASC) announced that it has executed a letter of intent to sell to Albertson's Inc. (NYSE: ABS) 74 Jewel/Osco combination food and drug stores in the states of Texas, Oklahoma, Arkansas and Florida together with a general merchandise warehouse in Ponca City, Okla. The sale is subject to negotiation and execution of a definitive sales agreement, the expiration of the Hart-Scott-Rodino waiting period and other customary conditions.
 The letter of intent provides that the sale price will approximate the book value of the assets to be sold. The proceeds net of retained current liabilities and taxes are expected to exceed $300 million, which will be used to reduce long-term debt, consistent with the company's intention to reduce debt over time. In 1989, the company began this program with the divestiture of 21 combination food and drug stores in Arkansas, Kansas, Utah and Austin, Texas.
 For the 1991 fiscal year, which ends on Feb. 1, 1992, it is anticipated that the 74 stores will have sales of approximately $1.5 billion and will not be profitable. The company also estimates that the sale will have a positive impact on cash flow.
 J.L. Scott, president and chief executive officer of American, stated, "It was difficult to reach the decision to sell these stores given our long history in these markets. However, as we evaluated our market position, the competitive and economic environment as well as the lack of adequate distribution facilities to remain competitive in these areas, we decided it was in our shareholders' best interest to sell the stores and deploy our resources in more profitable markets." Scott also noted that the sale of these stores is consistent with the strategy started several years ago of divesting stores that are underperforming while concentrating on markets with good performance and strong market shares.
 American Stores Co.'s other principal grocery and combination store operating subsidiaries include Acme Markets Inc., Jewel Food Stores Inc., Star Market and Lucky Stores Inc. American Stores Co.'s drug subsidiary, American Drug Stores Inc., operates under the Osco Drug and Sav-on names. At Nov. 2, 1991, the company's grocery and combination store subsidiaries operated 1,021 stores. The company's drug store subsidiary, American Drug Stores, operated the drug side of 225 of the combination stores and 478 stand-alone drug stores.
 -0- 1/28/92
 /CONTACT: Cal Drecksel (investors) or Troy D'Ambrosio (media) of American Stores, 801-539-0112/
 (ASC ABS) CO: American Stores Inc.; Albertson's Inc. ST: Utah IN: REA SU:


KJ -- LA024 -- 4478 01/28/92 18:07 EST
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Date:Jan 28, 1992
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