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SOUTHLAND AND MCLANE ANNOUNCE WHICH DISTRIBUTION AND FOOD FACILITIES ARE TO BE INCLUDED IN PROPOSED TRANSACTION

SOUTHLAND AND MCLANE ANNOUNCE WHICH DISTRIBUTION AND FOOD FACILITIES ARE TO
 BE INCLUDED IN PROPOSED TRANSACTION
 DALLAS, Sept. 30 /PRNewswire/ -- The Southland Corporation (and McLane Company, Inc., today announced that Southland will sell two of its five distribution centers and three of its six food centers to McLane in a transaction that was outlined on Aug. 24. Southland also announced that it will close its distribution and food centers in Tyler, Texas; Orlando, Fla.; and Champaign, Ill.
 Clark Matthews, Southland's president and chief executive officer, said that negotiations on a definitive agreement with McLane are proceeding based on the sale of Southland's distribution and food centers in Fredericksburg, Va.; its distribution center in San Bernardino, Calif.; and its food center in St. Louis, Mo., as well as the sublease of its food center in Salt Lake City, Utah.
 Terms have not been announced for the transaction, which is expected to be completed on Nov. 30. After the closing, McLane will make available wholesale distribution services to Southland's nearly 6,000 7-Eleven stores in the United States using the two Southland distribution centers and the 11 centers currently operated by McLane.
 "McLane has existing distribution centers in areas near our facilities in Tyler and Orlando that can service the convenience stores currently being supplied by those Southland centers," Matthews said. "Southland will cease operating the facilities in Tyler and Orlando on the transaction closing date, except for up to two months of phase-out activities that will involve a small group of employees.
 "McLane is currently building a new distribution center in Illinois through which the company plans to serve retail customers now being supplied by Southland's Champaign center, beginning in the spring of 1993. We will continue to operate the Champaign distribution and food centers for up to five months after the closing date to maintain uninterrupted service to our customers," Matthews added.
 Matthews noted when the transaction was first announced that Southland expects to benefit from McLane's distribution expertise, as well as its expanded network of distribution centers strategically located closer to 7-Eleven stores. For the first time in history, all 7-Eleven stores in the United States will be offered coast-to-coast distribution services from a single nationwide source. That, in turn, should provide 7-Eleven stores a major boost in their ongoing efforts to respond more quickly to customers' rapidly changing needs and preferences, he said.
 The Southland Corporation's operations include over 6,300 7-Eleven and other convenience stores in the United States and Canada. In addition, licensees and affiliates operate more than 7,200 other 7-Eleven stores in parts of the United States and 18 other countries.
 McLane Company, a wholly owned subsidiary of Wal-Mart Stores, Inc. (NYSE: WMT), serves more than 30,000 customer locations including convenience stores, supermarkets, fast food retailers, oil marketers, discount merchandisers and foodservice customers.
 -0- 09/30/92
 CONTACT: Cecilia Stubbs Norwood of Southland, 214-828-7272; Christi Lucksinger of McLane, 817-771-7508; or Don Shinkle of Wal-Mart, 501-273-4314
 (WMT) CO: THE SOUTHLAND CORPORATION; MCLANE COMPANY, INC. IN: REA ST: TX -- NY035 -- X435 09/30/92
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Publication:PR Newswire
Date:Sep 30, 1992
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