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SAVE-A-LOT RECOGNIZED FOR URBAN STORE DEVELOPMENT

ST. LOUIS -- February 25, 2004 -- In markets either abandoned or ignored by conventional grocery stores, Save-A-Lot has been identified by a leading trade publication as one chain that successfully serves urban markets while seeking additional development opportunities in such overlooked neighborhoods.

In a February 2, 2004, article in Supermarket News, Save-A-Lot was identified as a company uniquely able and committed to meeting the needs of such underserved markets. The company's market entry and development of approximately a dozen stores inside Baltimore's urban core was cited as one example of retailers returning to neighborhoods "long ago fled and more recently avoided."

Save-A-Lot operates several hundred of its 1,150-plus extreme value stores urban markets. Despite a prolonged exodus of conventional stores to the suburbs in cities nationwide, Save-A-Lot's unique business model allows the company to operate efficiently in inner cities, and today the company looks to bring its extreme value concept to even more neighborhoods inside Baltimore's urban core.

"Grocery stores are important in the stabilization of communities and in many instances help to attract other retailers," said Dan Kimack, Manager of Corporate Communications. "Along with providing high quality foods at savings up to 40% compared to conventional grocery stores, Save-A-Lot also recognizes its responsibility to provide good jobs and support important neighborhood initiatives, whether through in-kind charitable donations or volunteerism."

In the article, Kimack said, "Because of our successful business model and small-store footprint – about 14,000 to 16,000 square feet – Save-A-Lot has a unique ability to serve neighborhoods either ignored or abandoned by larger, conventional stores.

"Our market entry into Baltimore a couple of years ago was aided in part by Mayor Martin O'Malley's call for grocery stores to operate in many of the city's underserved communities. Through Save-A-Lot's concerted efforts with the mayor's office, the Baltimore City Council and many community groups, we now operate approximately 12 stores in the city."

Whether an urban, rural or suburban location, Save-A-Lot stores strive to deliver the same convenient shopping experience and low prices more than 4 million weekly shoppers expect.

And in all locations, Save-A-Lot hires from the communities it serves and is dedicated to the welfare of its customers and employees. For instance:

Since June of 2001 Save-A-Lot has hired approximately 3,000 people through the national Welfare to Work initiative.

Save-A-Lot has significantly increased customer use of federally assisted nutritional programs.

Save-A-Lot has designed and implemented nationally recognized employee education programs about government work supports.

Save-A-Lot has received recognition for the White House and Senate leadership, including Senator Rick Santorum, for hiring practices and community interaction.

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Dan Kimack
dan.kimack@save-a-lot.com