FIRST HALF OF 1998: NET CONSOLIDATED PROFIT UP BY 30.4 %

At the end of the first half of 1998, net profit at the DELHAIZE 'THE LION' GROUP (Group share) was up by 30.4 % at BEF 2.6 billion. Net profit per share rose by 30.3 % to BEF 49.9. Operating cash flow increased by 16.8 % to BEF 16.2 billion. Sales amounted to BEF 245.4 billion, an improvement of 7.2 % compared with the first six months of 1997. Sales increased in all operating companies. At the end of June 1998, the DELHAIZE 'THE LION' GROUP was operating 1,846 stores in 7 countries and under 16 trade names.

During the first six months of 1998, DELHAIZE 'LE LION' S.A. in Belgium achieved sales (including VAT) of BEF 57.1 billion. This increase of 6.1 % over the first half of 1997 is due to the dynamic commercial policy, the opening of new stores and recovery of the consumption in Belgium. Operating cash flow was up by 21.7 % at BEF 2 billion. During the first half of 1998 a 'supermarket of the 21st century' was successfully opened, 4 supermarkets were renovated and enlarged, and 1 supermarket was closed. The sales network was extended with 5 AD Delhaize, 2 Superette, 2 Di and 5 Tom & Co. In the second half of 1998, DELHAIZE 'THE LION' plans to renovate 5 supermarkets and to open 11 AD Delhaize, 2 Superette, 5 Di and 10 Tom & Co. The development of the new sales format Delhaize 2 will continue.

In the first half of 1998, sales of FOOD LION, Inc. (U.S.A) stood at USD 4.7 billion (BEF 173.6 billion), a 1.2 % increase. Excluding sales of the 61 Texas stores that were closed in the fourth quarter of 1997, sales rose 4.9 %. Same stores sales grew by 2.2 %. This increase in sales was achieved through an aggressive sales policy. Operating cash flow at FOOD LION totalled USD 348.6 million, up by 12 %. Net profit at FOOD LION amounted to USD 115.3 million, a 26 % increase. At the end of June 1998, FOOD LION was operating 1,175 supermarkets. During the first half of the year, FOOD LION opened 33 supermarkets and renovated 56 others. During the second half of 1998, FOOD LION intends to open 42 new supermarkets and to renovate 77 existing supermarkets.

Over the first half of 1998, SUPER DISCOUNT MARKETS, Inc. (U.S.A.) achieved sales of USD 125.7 million (BEF 4.7 billion) compared with USD 120.1 million over the same period in 1997. Operating cash flow stood at USD 2.9 million. At the end of May 1998, 3 supermarkets were taken over from a competitor and turned into Cub Foods supermarkets, bringing the number of stores under this trade name to 17.

During the first half of 1998 the P.G. GROUP (France) achieved sales (including VAT) of FRF 1.1 billion (BEF 6.6 billion), a 2.6 % increase. Operating cash flow stabilised at FRF 50.3 million, net profits at FRF 18.3 million. At the end of June 1998, the P.G. GROUP was operating 37 supermarkets and 9 'P.G. Partenaire' affiliates. The change of P.G. supermarkets into 'Stoc', the trade name of the group Comptoirs Modernes, will be finalised in the second half of 1998. The new supermarkets opening programme will be restarted in 1999.

During the first six months of 1998, sales at ALFA-BETA VASSILOPOULOS (Greece) were up by 19 % to GRD 59.3 billion (BEF 7.4 billion) thanks to its competitive pricing and commercial dynamism. In addition, rigorous cost controls enabled operating cash flow of GRD 2.9 billion to be achieved, an increase of 42 %. Despite an extraordinary cost of GRD 513 million due to the devaluation of the drachma, and accelerated depreciation charges following a change in legislation, the earnings before tax doubled to GRD 413.7 million. ALFA-BETA opened 4 new supermarkets during the first half of the year and plans to open six new supermarkets during the second half of 1998.

Sales (including VAT) at DELVITA (Czech Republic) totalled CZK 4 billion (BEF 4.6 billion), a rise of 51 %. The opening of 7 supermarkets, plus the growing reputation of DELVITA as well as the success of the Plus Card contributed to this strong growth. Operating cash flow amounted to CZK 183.6 million, a rise of 39 %. At the end of June 1998, DELVITA was operating 50 supermarkets and plans to open 10 supermarkets during the second half of 1998. A second distribution centre, located in the east of the Czech Republic, will come into operation before the end of the year. DELVITA proceeds with the preparations for its expansion to the Slovak Republic.

Sales at the two supermarkets of BEL-THAI SUPERMARKET Co. Ltd. (Thailand) grew strongly during the first half of 1998. BEL-THAI SUPERMARKET opened during the first half of 1998 under the 'Food Lion' trade name a third supermarket in Bangkok. The opening of 4 new supermarkets is planned during the second half of the year.

Thanks to the renovation of its 11 supermarkets, sales of PT LION SUPER INDO (Indonesia) increased strongly. The installations suffered limited damage during the recent street riots. In the second half of the year, LION SUPER INDO will open 2 supermarkets.

Despite the economic crisis, the result of the Asian activities of the DELHAIZE 'THE LION' GROUP was breakeven during the first half of 1998. The actual economic circumstances in South-East-Asia provide the DELHAIZE 'THE LION' GROUP with interesting opportunities to continue its expansion in the region.

Outlook

The DELHAIZE 'THE LION' GROUP will continue to expand during the second half of the year, in which the sales network will be extended with 56 stores. DELHAIZE 'THE LION' GROUP will invest in 1998 for a total of BEF 20 billion.

Unless unforeseen circumstances or major fluctuations in foreign currency exchange rates, the current profit of the DELHAIZE 'THE LION' GROUP should increase significantly in the financial year 1998 compared to 1997 thanks to the favourable development of its activities.

Shareholder's calendar

• Press release 1998 sales
  ->January 8, 1999
• Press release 1998 results
  -> March 26, 1999
• Final date to deposit shares to attend the General Meeting of Shareholders
  -> May 21, 1999
• General Ordinary Meeting of ShareholdersR -> May 27, 1999