ALFA-BETA AND TROFO CREATE SECOND LARGEST RETAIL COMPANY IN GREECE

ATHENS (October 18, 2000) - A binding agreement was signed yesterday by the shareholders of Trofo and Alfa-Beta, which provides for the acquisition by Alfa-Beta of 100% of the share capital of Trofo. The transfer of shares is expected to take place as soon as the customary corporate and regulating approvals have been obtained. After this acquisition, the combined turnover of the two companies (1999 figures) will exceed GRD 245 billion (EUR 720 million), making Alfa-Beta the second largest retailer in Greece.

Trofo, with a turnover of GRD 77 billion (EUR 226 million) in 1999, is the sixth largest company in Greek food retailing. Currently, it operates 45 supermarkets and 12 cash and carry-stores, the latter under the separate corporate entity ENA S.A. There are also 40 additional supermarkets operating as ENA-franchisees.

Alfa-Beta, with a turnover of GRD 149 billion (EUR 437 million) in 1999, is the third largest company in food retailing in Greece. In the same year, the operating cash flow of Alfa-Beta amounted to GRD 7.7 billion (EUR 22.7 million) and the net profit to GRD 1.3 billion (EUR 3.7 million). Alfa-Beta operates 53 supermarkets.

'The agreement is a milestone in the history of our company', said Raphael Moissis, Chairman of Alfa-Beta. 'I am certain that this co-operation will prove as beneficial to our customers and associates as has been the agreement of 1992 between the Delhaize Group and Alfa-Beta.' The same positive outlook is shared by the principal shareholders of Trofo, Dimitris and Kostas Spanos, who expressed their confidence that the agreement will be beneficial as regards for the personnel and customers of their group.

Kostas Macheras, General Manager of Alfa-Beta, added: 'The merger fits perfectly with the strategic plans of our company and of the Delhaize Group. Our aim is to be one of the three largest companies in food retailing in every market in which we have a presence.' More specifically, this co-operation will enable Alfa-Beta to:

• Achieve considerable growth in volume and number of stores
• Extend significantly its nation-wide presence
• Spread its costs over a significantly higher turnover
• Promote its expansion plans from a broader operational basis

'Finally', concluded Kostas Macheras, 'the joining of forces and opportunities will offer great possibilities for self-development to all the employees of Alfa-Beta, Trofo and ENA.'

Denis Ricklin, General Manager of Delhaize Europe, welcomed Trofo within the Delhaize family. 'The strong assets and human resources of Trofo, resulting in an immediate earnings accretion for Alfa-Beta in 2001', Denis Ricklin underlined, 'will constitute a valuable addition to our Group.'

The Delhaize Group is a food retailer headquartered in Belgium and listed on the Brussels Stock Exchange (Euronext). The Delhaize Group operates in 11 countries and achieved in 1999 sales of EUR 14.3 billion (BEF 577.3 billion) and its net earnings amounted to EUR 169.9 million (BEF 6.9 billion). The Delhaize Group operates world wide 2,281 stores and employs 150,000 associates.

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