Rite Aid completes sale of Bi-Mart Membership Discounts Stores to Oregon Group

Business Wire, Feb 25, 1997

CAMP HILL, Pa.--(BUSINESS WIRE)--Feb. 25, 1997--Rite Aid Corp. (NYSE/PSE:RAD) Tuesday announced it completed the sale of Bi-Mart Membership Discount Stores to Bi-Mart Acquisition Corp., an Oregon corporation formed and owned by Bi-Mart's senior executives and Endeavour Capital of Portland.

Bi-Mart's release follows:

EUGENE, Ore.--Feb. 21, 1997--Bi-Mart Membership Discount Stores were sold today by the Rite Aid Corporation to Bi-Mart Acquisition Corporation, an Oregon corporation formed and owned by Bi-Mart's senior executives and Endeavour Capital of Portland.

"Bi-Mart is back to being on Oregon-based, owned and operated corporation," said Marty W. Smith, Bi-Mart's chief executive officer who helped lead the acquisition effort. "We know the northwest consumer and look forward to continuing to provide them with excellent membership services and outstanding products for a reasonable price."

No changes are expected for Bi-Mart's 2,500 employees, including the 300 who work at the corporation's executive offices and distribution center in Eugene. However, Bi-Mart Acquisition Corporation has adopted a Stock Incentive Plan under which it plans to provide local store leadership with an opportunity to hold stock of the parent company of Bi-Mart.

"We believe it is important for the key management to have a greater stake in their company and to help set direction for the future," Smith said.

Smith also announced Bi-Mart will add to its 46-store chain when it opens new locations in Eugene, Corvallis, Sutherlin and Portland. The four new stores are expected to open sometime later this year or early next year.

With annual sales of nearly $400 million, today's sale places Bi-Mart among Oregon's top five largest privately owned and operated companies.

"We've gotten to know the management at Bi-Mart over the past few years," said Rocky Dixon and Jon von Schlegell of Endeavour Capital. "And we're proud to help them acquire the Bi-Mart company and keep it here in the Northwest." Endeavour Capital is a private equity firm based in Portland, Ore.

Bi-Mart offers its members name brand housewares, drug sundries, photo-electronics, clothing, automotives, hardware, food and snacks, toys, sporting goods, pharmacy, and other items at discount prices. The corporation was founded in Yakima, Wash. in 1955 and moved its corporate offices to Eugene in 1967. Its stores are located in 35 communities in Oregon and Washington.

Rite Aid is the largest operator of drugstores in the United States with more than 3,500 drugstores in 26 states and the District of Columbia and revenues of over $10 billion.

General information about Rite Aid including background and press releases is available, free of charge, through the company's News-on-Demand fax service at 800/916-7788, or through the company's web site at http://www.RiteAid.com .

CONTACT: Rite Aid Corp.

Analysts: Frank Bergonzi, 717/975-5750

Media: Sarah Datz, 717/975-5718

or

Bi-Mart

Don Lerber, director of Advertising, 541/344-0681

Marty W. Smith, president/CEO, 541/344-0681

or

Endeavour Capital

John von Schlegell, managing partner, 503/223-2721