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THE PRICE COMPANY ADOPTS SHAREHOLDER RIGHTS PLAN

 SAN DIEGO, July 8 /PRNewswire/ -- The board of directors of The Price Company (NASDAQ: PCLB) announced the adoption of a Shareholder Rights Plan, as contemplated by its agreement to combine with Costco Wholesale Corp. into the newly formed Price/Costco as announced June 16, 1993. The record date is the close of business on July 8, 1993, for the dividend distribution of one Right for each share of Price Company common stock. Separate Rights certificates will not be provided, and the Rights will initially trade with the certificates for Common Stock. Details about the Shareholder Rights Plan will be mailed to the company's shareholders soon after the record date.
 The Shareholder Rights Plan will not prevent or interfere with the planned combination with Costco and is, in fact, intended to facilitate an orderly transaction with Costco. The Rights Plan will not prevent an offer for the company from a third party but is designed to discourage a hostile acquisition or the use by an acquirer of coercive or unfair takeover tactics. Potential transactions can and will be given due and adequate consideration by The Price Company board of directors.
 Generally speaking, the rights may not be exercised until an acquirer, other than Costco or certain other parties, acquires shares representing 10 percent or more of the company's voting power. Thereafter, all Rights holders, except the acquirer, would be entitled to purchase Price Company stock (or, under certain circumstances, stock of the acquirer) having a value of twice the exercise price of the Rights.
 The company's financial condition, operations and earnings will not be affected by the adoption of the Rights Plan. The company is entitled to redeem the Rights, at a redemption price of $.01 per Right, any time before they become exercisable. The Rights will expire at the effective time of the combination or upon the termination of such combination by the parties.
 -0- 7/8/93
 /CONTACT: Robert J. Hunt, executive VP and CFO of The Price Company, 619-581-4645/
 (PCLB)


CO: The Price Company; Costco Wholesale Corp. ST: California IN: REA SU:

MF-LS -- SD001 -- 9358 07/08/93 09:05 EDT
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Publication:PR Newswire
Date:Jul 8, 1993
Words:353
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