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



                RITE AID COMPLETES $3.0 BILLION REFINANCING

    Retires Majority of Debt Due in 2002; Brings Total Debt Reduction to
                   $2.9 Billion Since End of Fiscal 2000

            With Refinancing Completed, Company Says It Can Now
        Fully Concentrate On Continuing to Improve Operating Results


CAMP HILL, PA, June 28, 2001--Rite Aid Corporation (NYSE, PCX: RAD)
announced today that it has completed its previously announced $3.0 billion
refinancing, resulting in substantially reduced debt and the retirement of
the majority of the company's debt due in 2002. As a result of the
refinancing, the company now has no significant debt maturing before 2005.

In conjunction with the refinancing, the company said it intends to
reclassify approximately $850 million of capitalized leases to operating
leases. As a result of the reclassification and the refinancing, Rite Aid
said its total debt will be approximately $3.7 billion.

"This is a milestone in our turnaround plan," said Bob Miller, Rite Aid
chairman and chief executive officer. "We have strengthened our balance
sheet by reducing debt by $2.9 billion since the end of fiscal 2000 and by
eliminating any major debt payments until 2005. We also raised an
additional $200 million for our turnaround. We can now devote all of our
energy to continuing to improve operating results."

The refinancing consists of a $1.9 billion senior secured credit facility,
which matures in March 2005; the sale of 80.1 million shares of Rite Aid
common stock for $551.3 million; the issuance of 44.3 million shares of
Rite Aid common stock for $303.5 million of previously outstanding debt;
the exchange of $152 million of debt due in 2002 for debt due in 2006, the
sale of $150 million of new notes due 2008 and $107 million raised in lease
financing.


                                  - MORE -


The company said that as a result of the refinancing, its only remaining
debt due before March 2005 is $288 million of notes and $140 million of
amortization of the new credit facility, which the company said it will
satisfy using internally generated funds.

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.