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AMERICAN STORES EXECUTES AGREEMENT TO SELL 74 JEWEL/OSCO STORES

 AMERICAN STORES EXECUTES AGREEMENT TO SELL 74 JEWEL/OSCO STORES
 SALT LAKE CITY, Utah, Feb. 17 /PRNewswire/ -- American Stores Company (NYSE: ASC) announced today that it has executed a definitive agreement to sell 74 Jewel/Osco combination food and drug stores and a general merchandise warehouse to Albertson's, Inc. The stores are located in Texas, Oklahoma, Arkansas and Florida and the warehouse is located in Ponca City, Okla. The sale is subject to the expiration of the Hart-Scott-Rodino waiting period and other customary conditions.
 The company announced on Jan. 28, 1992 that it had signed a letter of intent with Albertson's to sell the stores. At that time J.L. Scott, president and CEO 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. The proceeds net of retained current liabilities and taxes are expected to exceed $300 million, which will be used to reduced long-term debt, consistent with the company's intention to reduce debt over time.
 American Stores Company's other principal grocery and combination store operating companies include Acme Markets, Inc., Jewel Food Stores, Inc., Star Market, and Lucky Stores, Inc. American Stores Company'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 stores.
 -0- 2/17/92
 /CONTACT: Cal Drecksel (investors) or Troy D'Ambrosio (media), 801-539-0112, both of American Stores/
 (ASC) CO: American Stores Company ST: Utah IN: REA SU:


JT -- NY040 -- 9693 02/17/92 19:17 EST
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Publication:PR Newswire
Date:Feb 17, 1992
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