Exhibit 99.1


INVESTORS:                                           MEDIA:
Dave Jessick                                         Karen Rugen
717-975-5750                                         717-730-7766
or investor@riteaid.com

FOR IMMEDIATE RELEASE

             RITE AID REACHES AGREEMENT TO SELL $302.4 MILLION
                              OF COMMON STOCK

                Receives Commitments for Additional Private
               Exchanges of $67.5 Million of Debt for Equity

 Company Announces It Will Offer $200 Million of New Senior Notes Due 2008
   To Complete Its $3.0 Billion Refinancing and Raise Additional Capital


CAMP HILL, PA, June 12, 2001--Rite Aid Corporation (NYSE, PSE: RAD) today
announced that it has entered into agreements providing for the private
placement of 40.3 million shares of its common stock to select
institutional investors for total gross proceeds of $302.4 million (or
$7.50 per share) and that it has received commitments for private exchanges
of $67.5 million of its 10.5% Senior Secured Notes due 2002 and bank debt
for shares of its common stock.

The company also announced that it intends to offer through a private
placement $200 million of Senior Notes due 2008. The purpose of this
offering is to complete Rite Aid's previously announced $3.0 billion
refinancing package, to pay refinancing fees and expenses and for general
corporate purposes.

Rite Aid said that as a result of the private placement of common stock and
the additional debt for equity exchanges, it has commitments to satisfy
$898.1 million of the condition that it issue $1.05 billion in new debt or
equity securities to obtain a new $1.9 billion senior secured credit
facility that is the cornerstone of its refinancing package. The company
said that with the commitment for the private placement of common stock, it
also has the commitments to satisfy the condition of the new credit
facility that $400 million of the $1.05 billion come from the sale of new
equity for cash. Rite Aid said it expects the additional $151.9 million
needed to complete the requirement to be provided by proceeds from the
private placement of senior notes.

When completed, the refinancing will significantly reduce Rite Aid's debt
and debt obligations maturing before March 2005. The company said it
expects to close the refinancing by mid-July.

In addition to the private placement of common stock, the debt for equity
exchanges and the senior note offering announced today, as previously
announced, Rite Aid's refinancing package also includes a commitment for a
private placement of common stock that will raise $150 million, a
commitment by one of the holders to exchange $152 million of the company's
10.5% Senior Secured Notes due 2002 for $152 million of new 12.5% Senior
Secured Notes maturing in 2006 and $226.2 million in other private
exchanges of common stock for debt.

Closing of the refinancing is subject to customary closing conditions and
the completion by Rite Aid of the balance of the required financing. The
closing of the private placement of common stock, and the closing of the
senior note offering, is conditioned upon the refinancing.

The common stock and senior notes will not be registered with the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act of 1933.

Salomon Smith Barney, and Credit Suisse First Boston acted as agents of the
private placement of common stock.

Rite Aid Corporation is one of the nation's leading drugstore chains with
annual revenues of more than $14 billion and more than 3,600 stores in 30
states and the District of Columbia. Information about Rite Aid, including
corporate background and press releases, is available through the company's
website at www.riteaid.com.

This press release may contain forward-looking statements, which are
subject to certain risks and uncertainties that could cause actual results
to differ materially from those expressed or implied in the forward-looking
statements. Factors that could cause actual results to differ materially
from those expressed or implied in such forward-looking statements include
our high level of indebtedness, our ability to make interest and principal
payments on our debt and satisfy the other covenants contained in our
credit facilities and other debt agreements, our ability to improve the
operating performance of our existing stores, and, in particular, our new
and relocated stores in accordance with our long term strategy, the
outcomes of pending lawsuits and governmental investigations, both civil
and criminal, involving our financial reporting and other matters,
competitive pricing pressures, continued consolidation of the drugstore
industry, third-party prescription reimbursement levels, regulatory changes
governing pharmacy practices, general economic conditions and inflation,
interest rate movements, access to capital and merchandise supply
constraints, and our failure to develop, implement and maintain reliable
and adequate internal accounting systems and controls. Consequently, all of
the forward-looking statements made in this press release are qualified by
these and other factors, risks and uncertainties. Readers are also directed
to consider other risks and uncertainties discussed in documents filed by
the Company with the Securities and Exchange Commission.

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