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SOUTHLAND AND MCLANE SIGN LETTER OF INTENT REGARDING DISTRIBUTION/FOOD PROCESSING BUSINESS

 SOUTHLAND AND MCLANE SIGN LETTER OF INTENT REGARDING
 DISTRIBUTION/FOOD PROCESSING BUSINESS
 DALLAS, Aug. 24 /PRNewswire/ -- The Southland Corporation and McLane Company, Inc., today announced that they have signed a letter of intent for McLane to make available wholesale distribution services to Southland's nearly 6,000 7-Eleven stores in the United States and to purchase certain assets of and continue Southland's distribution and food processing business.
 The companies expect to finalize and sign a definitive agreement by the end of October and plan to complete the transaction by mid-November. Terms will be disclosed at a later date.
 Southland anticipates that it will record an additional loss in 1992 as a result of the transaction.
 "This is an exciting move forward for McLane Company," said Drayton McLane, Jr., McLane's president and chief executive officer. "Southland was one of our very first customers back in 1968 when McLane Company started servicing convenience stores. We've had an excellent business relationship over the years, and we're enthusiastic about this opportunity to play a key role in Southland's revitalization."
 Clark Matthews, Southland's president and chief executive officer, said the transaction is the result of a comprehensive study of how best to supply products to 7-Eleven stores and is a major step in the company's plan to respond more quickly to customers' rapidly changing needs and preferences.
 "The advantage of this arrangement to Southland is that for the first time in our history, our stores will be offered coast-to-coast distribution service from a single nationwide source," Matthews said. "In addition to the benefit of McLane's convenience store distribution expertise to 7-Eleven, McLane's expanded network will also offer more distribution centers strategically located closer to our stores."
 McLane currently supplies 7-Eleven stores in northern California, Oregon, Washington, Colorado and Utah.
 The Southland Corporation's operations include over 6,300 7-Eleven and other convenience stores in the U.S. and Canada. In addition, licensees and affiliates operate more than 7,200 other 7-Eleven stores in parts of the U.S. 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 food service customers.
 -0- 8/24/92
 /CONTACT: Cecilia Stubbs Norwood, 214-828-7272 or Markeeta McNatt, 214-828-7209, both of The Southland Corporation, Christi Lucksinger of McLane Company, Inc., 817-771-7500 or Don Shinkle of Wal-Mart Stores, Inc., 501-273-4314/ CO: Southland Corporation; McLane Company, Inc. ST: Texas IN: REA SU :


DC -- NY039 -- 2576 08/24/92 12:07 EDT
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Publication:PR Newswire
Date:Aug 24, 1992
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