Market Overview

Rite Aid and Albertsons Companies Mutually Agree to Terminate Merger Agreement


Evaluating Governance Changes in Consultation with Stockholders

Schedules Annual Meeting of Stockholders

Rite Aid Corporation (NYSE:RAD) today announced that it has mutually
agreed with Albertsons Companies Inc. ("Albertsons") to terminate their
previously announced merger agreement.

"While we believed in the merits of the combination with Albertsons, we
have heard the views expressed by our stockholders and are committed to
moving forward and executing our strategic plan as a standalone
company," said Rite Aid Chairman and Chief Executive Officer John
Standley. "We remain focused on leveraging our network of conveniently
located retail pharmacies, our EnvisionRxOptions PBM and our trusted
brand of health and wellness offerings. We will continue building
momentum for key areas of our business like our innovative Wellness
store format, highly successful customer loyalty program and expanded
pharmacy service offerings, as we also enhance our omni-channel and own
brand offerings to strengthen our competitive position and create
long-term value for stockholders."

As a result, the special meeting of Rite Aid's stockholders, which was
to be held on August 9, 2018, will not take place.

Under the terms of the merger agreement, neither Rite Aid nor Albertsons
will be responsible for any payments to the other party as a result of
the termination of the merger agreement.

The company also announced its board of directors is evaluating
governance changes at the company. As it considers these changes, Rite
Aid will continue to engage with stockholders to ensure alignment
between the company and its investors.

The company also announced that its 2018 annual meeting of stockholders
will be held on October 30, 2018 at 8:30 a.m. at a location to be

About Rite Aid Corporation

Rite Aid Corporation (NYSE:RAD) is one of the nation's leading
drugstore chains with fiscal 2018 annual revenues of $21.5 billion. The
company also owns EnvisionRxOptions, a multi-faceted healthcare and
pharmacy benefit management (PBM) company supporting a membership base
of more than 22 million members; RediClinic, a convenient care clinic
operator with locations in Delaware, New Jersey, Pennsylvania, Texas and
Washington; and Health Dialog, a leading provider of population health
management solutions including analytics, a multi-channel coaching
platform and shared decision-making tools. Information about Rite Aid,
including corporate background and press releases, is available through
the company's website at

Important Notice Regarding Forward-Looking Statements

This communication contains certain "forward-looking statements" within
the meaning of the Securities Act of 1933 and the Securities Exchange
Act of 1934, both as amended by the Private Securities Litigation Reform
Act of 1995. Statements that are not historical facts are
forward-looking statements, and such statements include, but are not
limited to, statements regarding the termination of the proposed merger
(the "Merger") between Rite Aid Corporation ("Rite Aid") and Albertsons
Companies, Inc. ("Albertsons"); the outcome of legal and regulatory
matters in connection with the Merger or the termination of the merger
agreement; the obligations of Rite Aid or Albertsons related to the
termination of the merger agreement; the expected governance of Rite
Aid; the competitive ability and position of Rite Aid following the
termination of the merger agreement; the ability of Rite Aid to
implement new business strategies following the termination of the
merger agreement and any assumptions underlying any of the foregoing.
Words such as "anticipate," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "plan," "predict," "project," "should," and
"will" and variations of such words and similar expressions are intended
to identify such forward-looking statements. These forward-looking
statements are not guarantees of future performance and involve risks,
assumptions and uncertainties, including, but not limited to, our high
level of indebtedness and our ability to make interest and principal
payments on our debt and satisfy the other covenants contained in our
debt agreements; general economic, industry, market, competitive,
regulatory and political conditions; our ability to improve the
operating performance of our stores in accordance with our long term
strategy; the impact of private and public third-party payers continued
reduction in prescription drug reimbursements and efforts to encourage
mail order; our ability to manage expenses and our investments in
working capital; outcomes of legal and regulatory matters; changes in
legislation or regulations, including healthcare reform; our ability to
achieve the benefits of our efforts to reduce the costs of our generic
and other drugs; risks related to the pending transactions with WBA,
including the possibility that the remaining sales of distribution
centers and related assets may not close, or the business of Rite Aid
may suffer as a result of uncertainty surrounding the pending
transactions; the risk that any announcements relating to the
termination of the merger agreement could have adverse effects on the
market price of Rite Aid's common stock, and the risk that the
termination of the merger agreement and its announcement could have an
adverse effect on the ability of Rite Aid to retain customers and retain
and hire key personnel and maintain relationships with their suppliers
and customers and on their operating results and businesses generally;
the risk that Rite Aid's stock price may decline significantly if the
sale of distribution centers and related assets to WBA is not completed;
significant transaction costs from the terminated Merger; unknown
liabilities; the risk of litigation and/or regulatory actions related to
the Merger or the termination of the merger agreement; potential changes
to our strategy as a result of the termination of the merger agreement,
which may include delaying or reducing capital or other expenditures,
selling assets or other operations, attempting to restructure or
refinance our debt, or seeking additional capital, and other business
effects. These and other risks, assumptions and uncertainties are more
fully described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and in other documents that we file or furnish with
the Securities and Exchange Commission, which you are encouraged to
read. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those indicated or anticipated by such forward-looking
statements. Accordingly, you are cautioned not to place undue reliance
on these forward- looking statements, which speak only as of the date
they are made. Rite Aid expressly disclaims any current intention to
update publicly any forward-looking statement after the distribution of
this release, whether as a result of new information, future events,
changes in assumptions or otherwise.

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