INVESTORS:                                             MEDIA:
Dave Jessick                                           Karen Rugen
717-975-5750                                           717-730-7766
John Standley
717-214-8857
or investor@riteaid.com

FOR IMMEDIATE RELEASE

                        RITE AID ANNOUNCES AGREEMENT
                        RESOLVING SEC INVESTIGATION

Camp Hill, PA--June 21, 2002---Rite Aid Corporation (NYSE, PCX: RAD)
announced today that it has entered into a cease and desist order with the
Securities and Exchange Commission (SEC) that completes an investigation
into the company relating to certain financial reporting and accounting
practices under former management. Rite Aid said the accounting issues
identified in the order were addressed in the restatements of the company's
financial statements in 2000 and that Rite Aid has cooperated fully with
the SEC investigation.

Rite Aid will pay no fine under the settlement, under which the company
neither admitted nor denied any of the findings in the SEC's order. The
company agreed to cooperate fully with the SEC on any other investigations
or legal proceedings that may stem from the matters described in the order.

"We are pleased to resolve the matters with the SEC," said Bob Miller, Rite
Aid chairman and chief executive officer. "Rite Aid is a much stronger
company today than it was two years ago. Our new management team has
changed the way Rite Aid does business, including strengthening our
internal financial controls and maintaining the proper records to file
accurate financial reports with the SEC."

Rite Aid is one of the nation's leading drugstore chains with annual
revenues of more than $15 billion and approximately 3,500 stores in 28
states and the District of Columbia.

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