September 18, 1997                      Contact:  Chris Ahearn
                                        (704) 633-8250, Ext. 2892

For Immediate Release


    FOOD LION ANNOUNCES INCREASED SALES IN THIRD QUARTER,
              PLANS TO DIVEST SOUTHWEST STORES

     Salisbury, NC-- Today, Food Lion, Inc. (NASDAQ:  FDLNA,
FDLNB) announced third quarter sales of $2.4 billion, up
11.4 percent over 1996 sales of $2.1 billion for the same
quarter. Sales and earnings include the operating results of
the Company's Kash n' Karry subsidiary in West Central
Florida acquired in December 1996.  Same store sales were up
0.3 percent companywide, and were up 0.9 percent, exclusive
of sales in the Company's Southwestern United States stores.
The Company announced that it plans to close its stores and
distribution center in the Southwest.  The move affects 61
stores in Louisiana, Oklahoma, and Texas and a distribution
facility in Roanoke, Texas.
     Food Lion reported earnings for the quarter of $1.2
million, or $0.003 per share, which included a pre-tax
charge of $87.1 million associated with store closings.
Earnings for the quarter, exclusive of the charge, were
$54.4 million, or $0.12 per share, compared to $50.0
million, or $0.11 per share, in the prior year.
     "We have been evaluating our Southwest strategy for
some time now," explained Tom Smith, President and Chief
Executive Officer.  "We examined a number of options,
including possible acquisitions, and determined that it was
in the best interests of the Company and our  shareholders
to sell the stores and deploy our assets toward further
growth in our successful Southeast and Mid-Atlantic
markets."
     The Company established a pre-tax reserve for store
closings of $87.1 million ($53.1 million after tax) against
third quarter earnings.  The pre-tax reserve reflects costs
and asset revaluation reserves of $129.1 million related to
the divestiture of the Southwest, less $42.0
million in unused reserves related to store closings that
occurred since 1993.  Cash proceeds, net of
expenses, are expected to be approximately $100 million upon
disposition of assets in the Southwest.  Southwest stores
have lowered the Company's net earnings by approximately
$0.01 per share on an annual basis.
     The stores and the distribution center employ
approximately 3,100 people.  Food Lion will pay all
employees who remain with the Company during the closing
process for 60 days, through November 17, 1997.  Food Lion
will also work with state and local officials to assist
employees in finding other employment.
     "We appreciate the loyalty our customers have shown us
over these past few years.  I would also especially like to
commend our employees for their diligent efforts," Smith
added.  "Our human resources department will visit each
store in the next several days and work with employees
through the transition."
     The Company was pleased with the overall progress it
has made during the past quarter with new store growth.  In
September, Food Lion finalized the purchase of 11
A & P Supermarkets in North and South Carolina.  The Company
also opened 18 new stores, including seven replacement
stores, closed one store, and completed 29 renovations.  The
Company is on track with plans to open 62 stores this year
and remodel approximately 100 stores.  Food Lion expects to
complete the integration of Kash n' Karry on schedule, by
October 1.
     "We have seen an improvement in sales trends throughout
the first three quarters of the year," Smith said.  "In
addition, our use of category management and state-of-the-
art technology is helping us maximize profits, minimize
expenses, and protect our low price leadership for
customers."
     With 1996 sales of $9.0 billion, Food Lion is one of
the nation's largest supermarket chains.  The Company and
its more than 75,000 employees serve approximately 10
million customers per week with Extra Low Prices and More at
1,058 Food Lion stores in 11 states, and Fresh, Fast, and
Friendly service at 91 Kash n' Karry stores in West Central
Florida.

"Safe Harbor" Statement Regarding Forward-looking
Information or Statements:
This document contains forward-looking statements that
involve uncertainties.  Factors that could cause results to
differ materially from those in the forward-looking
statements are detailed from time to time in reports filed
by the Company with the SEC, including Forms 8K, 10Q and
10K.  In addition, with respect to the anticipated proceeds
from the disposition of assets in the Southwest, additional
factors that could cause results to differ materially
include the real estate market and general economic
conditions in the local communities where the assets are
located.