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BIG B ANNOUNCES PROPOSED ACQUISITION AND PROPOSED OFFERING

 BESSEMER, Ala., Feb. 24 /PRNewswire/ -- Big B, Inc. (NASDAQ: BIGB) announced today that it has entered into a definitive agreement to purchase from Thrift Drug, Inc. the assets of 45 drug stores in Georgia and that it also has filed today a registration statement with the Securities and Exchange Commission for a proposed underwritten offering of $35 million aggregate principal amount of Convertible Subordinated Debentures (exclusive of over allotments).
 The 45 stores being purchased from Thrift Drug, Inc. are operated under the name "Treasury Drug" and are located primarily in the Atlanta metropolitan area. The transfer is expected to take place within the next 60 days. After the acquisition, Big B will convert the newly acquired stores to the Big B format and will be operating 151 stores in Georgia with over 100 of these stores located in the Atlanta metropolitan area.
 Big B believes that the acquisition will provide economies of scale in advertising, supervision and distribution to Big B and strengthen its position in the Atlanta market. The move enables Thrift Drug, a subsidiary of J.C. Penney Company (NYSE: JCP), to strengthen its marketing efforts for its 500 remaining stores in 17 states, located primarily in the midwest and mid-Atlantic regions, which are operated under both the "Thrift Drug" and "Treasury Drug" names. Thrift will no longer operate its distribution center in Georgia and is seeking buyers for its remaining 19 stores in the market.
 Morgan, Keegan & Company, Inc., will act as the managing underwriter of the $35 million convertible debenture offering, which is anticipated to occur in March 1993. Big B plans to use the proceeds to reduce existing bank debt, to fund the proposed Treasury acquisition and the cost of converting the acquired stores to the "Big B" format, and to fund the enhancement of the company's point-of-sale system.
 A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 Big B, Inc. currently operates over 300 drug stores in the five states of Alabama, Georgia, Florida, Mississippi and Tennessee.
 -0- 2/24/93
 /CONTACT: Arthur M. Jones Sr. of Big B, 205-424-3421, or Trish Orchard of Thrift Drug, 412-967-8811/
 (BIGB JCP)


CO: Big B, Inc.; Thrift Drug, Inc.; Treasury Drug, Inc.;
 J.C. Penney Company ST: Alabama, Georgia IN: REA SU: TNM OFR


BR-RA -- AT002 -- 9737 02/24/93 08:16 EST
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Publication:PR Newswire
Date:Feb 24, 1993
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