PriceCostco
Contact: Richard A. Galanti
(206) 803-8203
Robert Nelson
(206) 803-8255

Price Enterprises
Contact: Daniel T. Carter
(619) 581-4889

FOR IMMEDIATE RELEASE

PRICECOSTCO AND PRICE ENTERPRISES ANNOUNCE COMPLETION OF
EXCHANGE OFFER RESULTING IN THE SPIN-OFF OF PRICE ENTERPRISES;
APPROXIMATELY 23 MILLION SHARES TENDERED

    Kirkland,  Washington;  San  Diego,  California  --  December  21,  1994  --
PriceCostco, Inc.  (NASDAQ: PCCW)  and Price  Enterprises, Inc.  (NASDAQ:  PREN)
today  announced  the  completion of  the  exchange offer  in  which PriceCostco
offered to exchange one share of  Price Enterprises common stock for each  share
of  PriceCostco common stock tendered,  up to a maximum  of 27 million shares of
Price Enterprises common stock. The exchange offer expired Tuesday, December 20,
1994 at 12:00 midnight, New York City time, in accordance with the terms of  the
exchange offer.

    Price  Costco  stated that,  according to  the exchange  agent's preliminary
count, approximately 23 million shares of PriceCostco common stock were tendered
by physical delivery, book-entry transfer or notice of guaranteed delivery.  All
properly  tendered shares  of PriceCostco  common stock  have been  accepted for
exchange  and  the  issuance  of  certificates  representing  shares  of   Price
Enterprises common stock will begin promptly.

    Based  on the exchange agent's preliminary  count, following the issuance of
shares of Price Enterprises common stock in the exchange offer, PriceCostco will
hold approximately  four  million  shares of  Price  Enterprises  common  stock.
Pursuant  to an agreement between PriceCostco and Price Enterprises, PriceCostco
is required, at  its option, either  (i) to distribute  the remaining shares  of
Price  Enterprises common stock on a  pro rata basis to PriceCostco stockholders
or (ii) to sell such  shares to Price Enterprises  in exchange for a  promissory
note.  PriceCostco has  stated that  no decision  has yet  been made  as to what
action it will take.

    As a result  of the  exchange offer, Price  Enterprises is  now a  separate,
publicly-traded  company. Price Enterprises  common stock will  be traded on The
Nasdaq Stock Market's National Market under the symbol "PREN" effective today.