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Contact Information

Media:                                                Investors:
- ------                                                ----------
Chris Ahearn                                          Dave Hogan
Director of Corporation Communications    or          Investor Relations Manager
(704)633-8250 Ext. 2892                               (704) 633-8250 Ext. 2529


For Immediate Release

                      FOOD LION, INC. SHAREHOLDERS APPROVE

           CREATION OF DELHAIZE AMERICA, INC. AS NEW HOLDING COMPANY

          --Proposed Initiatives, Including September 9 Move to NYSE,
                        Intended to Facilitate Growth--


         NEW YORK, NY, SEPTEMBER 7, 1999 - - Food Lion, Inc. (Nasdaq:FDLNA,
FDLNB), announced that, at its special shareholder meeting held today in New
York, Food Lion, Inc. shareholders approved the full series of growth
initiatives advanced by the Company's management on August 18, 1999.

         Bill McCanless, President and Chief Executive Officer of Delhaize
America, said, "Our vision is to be a multi-regional force in the consolidating
supermarket industry. With the recently announced acquisition of Hannaford
Brothers and a new corporate structure, we will be well positioned under these
banners as a premier food retailer for the 21st century, and to maximize the
value of Delhaize America for our shareholders."

         The initiatives approved by shareholders include:

- --       Forming a holding company, to be called Delhaize America, Inc. This
         umbrella structure will enable the Company to expand existing
         operations by individually developing its portfolio of brands, and will
         facilitate future acquisitions.

- --       A one-for-three reverse stock split of the Company's outstanding
         shares of common stock (Classes A and B), which will be converted into
         Delhaize America shares. This is intended to attract increased
         institutional buying.

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- --       Authorizing 500 million shares of a new class of "blank check"
         preferred stock that could be issued in connection with private
         offerings of shares for cash, dividends payable in Company stock,
         acquisitions, implementation of employee benefit plans, or other
         purposes. This is expected to increase the flexibility of the powers of
         the Board of Directors.

- --       Increasing the maximum number of authorized directors of the Company
         from 10 to as many as 14.

         In addition, Delhaize America, Inc. will be listed on the New York
Stock Exchange beginning September 9th. This is intended to enhance the
visibility of the Company's shares within the investment community and to place
it among its peer group of large, multi-regional supermarket chains. The
Company's two classes of common stock will trade under the symbols "DZA" and
DZB". Simultaneously, Food Lion, Inc. shares will be delisted from the Nasdaq
National Market system.

         With 1998 sales of $10.2 billion, Delhaize America, Inc. is one of the
nation's largest supermarket companies. The Company and its more than 92,000
employees serve more than 10 million customers a week at its 1,120 Food Lion
and 143 Kash n' Karry and Save 'n Pack supermarkets. With the addition of
Hannaford Bros., which entered into an agreement on August 18, 1999 to be
acquired by Delhaize America, the Company will have over 1,400 stores
throughout the eastern United States from Maine to Florida, with total
projected annual revenue for 2000 of approximately $15 billion and more than
116,000 full-time and part-time employees. For more information, visit the
Delhaize America website at www.delhaize-americainc.com.

         This document contains forward-looking statements that involve
uncertainties. Factors that could cause results to differ materially from those
in the forward-looking statements are detailed from time to time in reports
filed by the Company with the SEC, including Forms 8K, 10Q and 10K.


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