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.