FOOD LION NEWS
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  P.O. Box 1330 -- Salisbury, NC  28145-1330 -- (704) 633-8250

November 8, 1996                   Contact: Chris Ahearn
                                   (704) 633-8250, Ext. 2892

For Immediate Release
                                
 FOOD LION, INC. TO COMMENCE ALL-CASH, $26.00 PER SHARE, TENDER
  OFFER AS FIRST STEP IN KASH N' KARRY FOOD STORES, INC. MERGER

SALISBURY,  NC  and  TAMPA, FL -- Food  Lion,  Inc.  (Nasdaq-NNM:
FDLNA,  FDLNB)  of Salisbury, North Carolina, and Kash  n'  Karry
Food Stores, Inc. (Nasdaq-NNM: KASH) of Tampa, Florida, announced
today that Food Lion will commence, within five business days, an
all-cash  tender  offer  for all of the  issued  and  outstanding
common  shares of Kash n' Karry at the price of $26.00 per share.
This  announcement  comes  pursuant to the  previously  announced
definitive merger agreement between the two companies.

Food Lion and Kash n' Karry said that the decision to effect  the
transaction by means of a first-step tender offer reflected their
shared  objective  of  allowing the shareholders,  customers  and
employees  of  both  companies to realize  the  benefits  of  the
transaction  at  the earliest possible date. It  is  contemplated
that  the merger will be effected without the necessity of a Kash
n'  Karry  stockholder vote if more than 90% of Kash  n'  Karry's
outstanding shares are acquired in the tender offer.

As  announced  on  October 31, 1996, Kash  n'  Karry's  Board  of
Directors   has   unanimously  approved   the   transaction   and
recommended  approval  and adoption of  the  merger  by  Kash  n'
Karry's  stockholders. Institutional investors, who together  own
approximately  67% of Kash n' Karry's outstanding  common  stock,
have  committed to support the transaction, have granted  proxies
and  options  on  their shares in favor of Food  Lion,  and  have
agreed to tender their shares in the tender offer.

Consummation  of the merger, which is subject to satisfaction  of
certain   conditions,  including  the  expiration  of  applicable
waiting    periods   under   the   Hart-Scott-Rodino    Antitrust
Improvements Act of 1976, is expected to occur later this year or
early next year.

Food Lion and its more than 72,000 employees serve more than nine
million customers per week by providing Extra Low Prices and More
at more than 1,100 stores in 14 states.
                                
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