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STOP & SHOP ANNOUNCES SECOND QUARTER RESULTS

 BRAINTREE, Mass., Sept. 13 /PRNewswire/ -- The Stop & Shop Companies, Inc. (NYSE: SHP) today announced second quarter results showing a 7 percent increase in sales and a net profit of $13,000,000 or 25 cents per share, after reflecting a previously announced reduction in earnings of $4,500,000 or 9 cents per share, due to the effect of recent federal tax law changes.
 Sales for the 12 weeks ended Aug. 14, 1993 were $829,200,000, compared with $775,600,000 for the same period last year, a 7 percent increase. Comparable store sales increased 1 percent. Earnings from continuing operations before income tax provision reached $31,500,000, a 31 percent increase over last year's restated $24,000,000. Earnings for 1992 have been restated to reflect adoption, in the first fiscal quarter of 1993, of Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes."
 After tax earnings from continuing operations were $13,000,000 or 25 cents per share in the second quarter, after reflecting the reduction in earnings of $4,500,000 due to recent federal tax law changes, compared with a restated $13,900,000 or 27 cents per share last year.
 Net earnings for the second quarter were $13,000,000 or 25 cents per share compared with a restated $1,300,000 or 3 cents per share, in the same period of the prior year. 1992 results included a $12,600,000 extraordinary loss due to the early retirement of high interest debt.
 Sales for the 28 weeks ended Aug. 14, 1993, were $1,890,000,000 compared with $1,783,000,000, a 6 percent increase. Comparable store sales increased 1 percent. Year-to-date earnings from continuing operations before income tax provision were $66,800,000, a 27 percent increase over last year.
 Year-to-date after tax earnings from continuing operations were $32,500,000 or 63 cents per share for the 28 weeks in 1993, after reflecting the earlier noted reduction in earnings of $4,500,000 due to recent federal tax law changes, compared with a restated $29,800,000 or 58 cents per share for the same period last year.
 Net earnings, year-to-date, were $26,700,000 or 52 cents per share, after reflecting a charge of $5,800,000 caused by the adoption of SFAS No. 6, "Employers' Accounting for Postretirement Benefits Other Than Pensions" earlier this year. This compared with a restated net loss of $193,600,000 or $3.75 per share for the same period last year. The prior year's figures included Bradlees, which became a discontinued operation, and the extraordinary loss due to early retirement of high interest debt.
 Since the close of the quarter, Stop & Shop sold its remaining shares of Bradlees stock, concluding its investment in that company.
 During the second quarter, Stop & Shop opened superstores in Bristol, R.I. and Bedford, Mass. On Aug. 27, 1993, the company opened its first Super Stop & Shop in New York State in Wappingers Falls. Three more superstores will open later this week in Simsbury and Southington, Conn., and Kingston, Mass. At least two additional superstores will open later this year completing the 1993 expansion plan. Twelve more superstores are expected to open in fiscal 1994.
 Stop & Shop is New England's largest supermarket company and now operates 121 Stop & Shop supermarkets, including 79 superstores, in Connecticut, Massachusetts, Rhode Island and New York.
 THE STOP & SHOP COMPANIES, INC.
 AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited)
 (in thousands, except per share amounts)
 12 Weeks Ended 28 Weeks Ended
 8/14/93 8/15/92 8/14/93 8/15/92
 (c) (c)
 Retail sales $829,186 $775,605 $1,890,484 $1,782,502
 Cost and expenses:
 Cost of goods sold,
 buying and
 warehousing costs 604,433 571,097 1,380,891 1,317,105
 Selling, store
 operating and
 administrative
 expenses 157,775 143,394 360,101 329,642
 Depreciation and
 amortization 15,467 14,064 35,729 32,475
 Amortization of
 goodwill and
 lease interests 2,677 2,595 6,137 6,055
 Costs and expenses 780,352 731,150 1,782,858 1,685,277
 Operating profit 48,834 44,455 107,626 97,225
 Interest expense,
 net 17,347 20,416 40,844 44,645
 Earnings from
 continuing
 operations,before
 income tax
 provision 31,487 24,039 66,782 52,580
 Income tax provision
 (a) 18,487 10,163 34,282 22,782
 Earnings from
 continuing
 operations (a) 13,000 13,876 32,500 29,798
 Loss from
 discontinued
 operations, net of
 income tax benefit --- --- --- (13,958)
 Loss on disposition
 of discontinued
 operations --- --- --- (194,539)
 Extraordinary loss,
 net of income
 tax benefit --- (12,600) --- (14,900)
 Cumulative effect
 of change in
 accounting method,
 net of income
 tax benefit (b) --- --- (5,806) ---
 Net earnings
 (loss)(a) $13,000 $1,276 $26,694 $(193,599)
 Net earnings (loss)
 per common share
 and share
 equivalents:
 Earnings from
 continuing
 operations (a) 25 cents 27 cents 63 cents 58 cents
 Loss from
 discontinued
 operations, net
 of income tax
 provision --- --- --- (27 cents)
 Loss on disposition
 of discontinued
 operations --- --- --- (3.77)
 Extraordinary loss,
 net of income tax
 benefit --- (24 cents) --- (29 cents)
 Cumulative effect
 of change in
 accounting method,
 net of income
 tax benefit (b) --- --- (11 cents) ---
 Net earnings
 (loss)(a) 25 cents 3 cents 52 cents ($3.75)
 Weighted average
 number of common
 shares and share
 equivalents
 outstanding 52,055 51,479 51,965 51,542
 NOTE: (a) The 12 and 28 weeks ended Aug. 14, 1993 include a net charge of $4,500 (9 cents per share), as a result of the recent increase in the corporate Federal income tax rate, as required under SFAS No. 109 "Accounting for Income Taxes."
 (b) Represents immediate recognition of the cumulative effect of adopting SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" in the first fiscal quarter.
 (c) Restated to reflect retroactive adoption, in the first fiscal quarter of 1993, of SFAS No. 109, "Accounting for Income Taxes."
 -0- 9/13/93
 /CONTACT: S. Terry Vandewater of Stop & Shop Companies, 617-380-7043/
 (SHP)


CO: Stop & Shop Companies, Inc. ST: Massachusetts IN: REA SU: ERN

CM -- NE002 -- 1123 09/13/93 08:50 EDT
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