FOR IMMEDIATE RELEASE

                             DELCHAMPS, INC.
                                   AND
                  JITNEY-JUNGLE STORES OF AMERICA, INC.
                         ANNOUNCE MERGER AGREEMENT

    MOBILE, ALABAMA, and JACKSON, MISSISSIPPI, July 8, 1997: Delchamps, Inc. 
(Nasdaq NMS: DLCH) and Jitney-Jungle Stores of America, Inc. announced today 
that they have entered into a definitive merger agreement under which 
Jitney-Jungle will acquire Delchamps.

    Under the merger agreement, Jitney-Jungle will commence, within five 
business days, an all-cash tender offer for all of Delchamps' outstanding 
common stock at a price of $30 per share. Following successful completion of 
the tender offer, Jitney-Jungle will acquire for the same cash price any 
shares that are not tendered by means of a merger of Delchamps with a wholly 
owned subsidiary of Jitney-Jungle.

    Delchamps' Board of Directors has approved the transaction unanimously 
and has recommended approval by the Delchamps stockholders. Credit Suisse 
First Boston Corporation is acting as financial advisor to Delchamps in the 
transaction.

    David W. Morrow, Chairman and Chief Executive Officer of Delchamps, said: 
"The combination of these two excellent regional supermarket chains will 
create a very strong competitor capable of meeting the increasing challenges 
of the intensely competitive market in the Gulf South region. We expect the 
combination to benefit our employees and customers, as well as our 
stockholders."

    "This transaction unites two leading supermarket chains in the 
southeast," said Michael E. Julian, President and Chief Executive Officer of 
Jitney-Jungle. "We are excited about the opportunity to better serve the 
Jitney-Jungle and Delchamps customers by combining the employees, managers 
and resources of two leading retail companies and building one of the premier 
supermarket chains."

    The tender offer is conditioned upon, among other things, there being 
tendered and not withdrawn prior to the expiration date of the offer at least 
two-thirds of the outstanding Delchamps shares. The offer initially will 
expire 20 business days after it is commenced, but under certain 
circumstances will be extended by Jitney-Jungle for up to 60 calendar days 
from the commencement date if necessary to meet certain conditions, including 
receipt of regulatory approval under the Hart-Scott-Rodino Antitrust 
Improvements Act of 1976 and the consent of holders of Jitney-Jungle's 
outstanding senior notes. The offer may be




extended by Jitney-Jungle for up to the same period to enable it to obtain 
permanent financing for the acquisition. In addition, Jitney-Jungle may 
extend the offer for up to 90 calendar days from the commencement date under 
certain other circumstances.

    Jitney-Jungle has obtained commitment letters from Fleet Capital 
Corporation and from an affiliate of Donaldson, Lufkin & Jenrette Securities 
Corporation to provide senior bank and subordinated debt financing to fund 
the tender offer and the merger.

    Delchamps operates 118 supermarkets in Louisiana, Mississippi, Alabama 
and Florida, and 10 liquor stores in Florida.

    Jitney-Jungle operates a chain of 21 discount stores, 77 conventional 
stores and 7 combination stores for a total of 105 supermarkets and 53 
gasoline stations located throughout Mississippi and in Tennessee, Arkansas, 
Alabama, Louisiana and Florida.

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FOR FURTHER INFORMATION CONTACT:

Delchamps, Inc.:

     Timothy E. Kullman, Chief Financial Officer
     (334) 433-0437, ext. 217

Jitney-Jungle Stores of America, Inc.:

     Michael E. Julian, President and Chief Executive Officer
     (601) 346-2116