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REVCO SIGNS AGREEMENT WITH ZELL/CHILMARK

 REVCO SIGNS AGREEMENT WITH ZELL/CHILMARK
 TWINSBURG, Ohio, Feb. 6 /PRNewswire/ -- Revco D.S., Inc. and


Zell/Chilmark Fund, L.P. announced today they had signed the $250 million cash-merger agreement that Revco had announced on Jan. 30, 1992.
 The agreement is incorporated into and made a part of Revco's modified plan of reorganization. Revco has filed the modification to its plan of reorganization and today will file an accompanying disclosure statement with the U.S. Bankruptcy Court. The hearing on approval of that disclosure statement is scheduled for Feb. 14, 1992.
 Boake A. Sells, Revco chairman and chief executive officer, said, "We are very pleased to have finalized our agreement with Zell/Chilmark. This arrangement should help us successfully complete the confirmation process. We believe it will speed Revco's emergence from bankruptcy."
 Sells noted that the two official creditor committees -- the Official Committee of Unsecured Trade Creditors and the Official Committee of Subordinated Noteholders -- had expressed their support of the modified Revco plan.
 The plan and merger agreement will provide a cash election option to creditors of Revco who would otherwise receive Revco common stock under the plan. Pursuant to the cash election option, creditors can elect to receive cash for all or any portion of the shares they are entitled to receive in the amount of $7.47 for each share, up to a total of $250 million for all shares. The cash merger would be part of, and is conditioned on, successful reorganization of Revco in accordance with the plan proposed by Revco.
 As part of the agreement, Zell/Chilmark agreed to deposit $5 million of the purchase price in escrow as earnest money, to secure Zell/Chilmark's obligations under the agreement. The agreement includes no fees or expense reimbursement to Zell/Chilmark.
 Zell/Chilmark may terminate the merger agreement if confirmation of Revco's modified plan is not finalized by April 30, 1992 or if the merger and reorganization are not completed within ninety days after the plan is confirmed.
 Revco operates 1,150 drug stores in 10 states. Based in Twinsburg, Ohio, the privately held company has annual sales of $1.9 billion and fills more than 43 million prescriptions a year.
 -0- 2/6/92
 /CONTACT: Diana Lueptow of Revco D.S., 216-425-9811, ext. 6145, or Fred Garcia of Zell/Chilmark, 212-953-2550/ CO: Revco D.S., Inc. ST: Ohio IN: REA SU:


LC -- CL023 -- 7766 02/06/92 13:21 EST
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Date:Feb 6, 1992
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