FOR IMMEDIATE RELEASE NEWS Contact: Thomas C. Franco Rohit J. Menezes (212) 229-2222 HOMELAND STORES CONTINUES NEGOTIATIONS WITH BONDHOLDERS NEW YORK, March 1, 1996 - Homeland Stores, Inc. announced today that it is continuing negotiations with a committee of bondholders, representing approximately 80% of the company's debt, regarding the restructuring of the company. The committee of bondholders stated that it is hopeful that an agreement with the company will be reached shortly. The bondholder committee also stated that while negotiations are proceeding, it will not exercise any contractual or other remedies in response to the company's decision not to make the scheduled interest payment on its outstanding public debt, due March 1, 1996. Homeland, a private company, is the leading supermarket chain in the Oklahoma, southern Kansas, and Texas panhandle region.