Exhibit 99.1


INVESTORS:                                                        MEDIA:
John Standley                                                     Karen Rugen
(717) 214-8857                                                    (717) 730-7766
Kevin Twomey
(717) 731-6540
or investor@riteaid.com

FOR IMMEDIATE RELEASE


                RITE AID COMPLETING REVIEW OF LEASE ACCOUNTING

CAMP HILL, PA, March 17, 2005-Rite Aid Corporation (NYSE, PCX: RAD) today
announced that, like many other retail and restaurant companies, it is
reviewing its accounting practices with respect to leasing transactions. This
action is being taken as a result of a February 7, 2005 letter issued by the
Office of the Chief Accountant of the SEC to the American Institute of
Certified Public Accountants clarifying the application of generally accepted
accounting principles ("GAAP") for lease accounting. Our management and audit
committee determined, on March 17, 2005, that the Company's methods of
accounting for rent during construction periods and amortization of leasehold
improvements for a small number of stores are not consistent with GAAP. This
determination was also discussed with our independent registered public
accounting firm, Deloitte & Touche LLP.

Accordingly, the Company will restate its previously issued consolidated
financial statements for fiscal years 2004, 2003 and 2002 and its financial
statements for the first three quarters of fiscal 2005.

The Company estimates that the approximate effect of such restatement is an
increase in net income of $68,000 for fiscal 2004, an increase in net loss of
$466,000 for fiscal 2003 and a decrease in net loss of $2.0 million for fiscal
2002, or less than $.01 per diluted share for each of the fiscal years 2004,
2003 and 2002. The Company estimates that the effect of such restatement for
the first three quarters of fiscal 2005 is a decrease in net income of
$254,000, or less than $.01 per diluted share. The cumulative effect of such
corrections for all fiscal years prior to 2002 will be a charge of
approximately $20 million. These corrections will have no effect on historical
or future cash flows or the timing of payments under the Company's operating
leases. All estimates contained in this release are subject to change as the
Company completes the restatement of its financial statements.

As a result of the Company's determination to restate its consolidated
financial statements, the financial statements included in the Company's
Annual Report on Form 10-K for its fiscal year ended February 28, 2004 and the
related independent auditors' report, as well as its interim unaudited
financial statements for the first three quarters of fiscal 2005, should no
longer be relied upon. Before April 7, 2005, the Company will file a Form
10-K/A amending its Annual Report on Form 10-K for its fiscal year ended
February 28, 2004 with restated consolidated financial statements and Forms
10-Q/A amending its interim unaudited financial statements for the first three
quarters of fiscal 2005.

                                   - MORE -



Rite Aid Press Release - page 2



The Company will announce fourth quarter and full year fiscal 2005 financial
results as previously scheduled on April 7, 2005.

Rite Aid Corporation is one of the nation's leading drugstore chains with
annual revenues of $16.7 billion and approximately 3,400 stores in 28 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 senior secured credit
facility and other debt agreements, our ability to improve the operating
performance of our existing stores in accordance with our long term strategy,
our ability to hire and retain pharmacists and other store personnel, the
outcomes of pending lawsuits and governmental investigations, competitive
pricing pressures, continued consolidation of the drugstore industry, the
efforts of third-party payors to reduce prescription drug reimbursements and
encourage mail order, changes in state or federal legislation or regulations,
the success of planned advertising and merchandising strategies, general
economic conditions and inflation, interest rate movements, access to capital
and our relationship with our suppliers. 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. Forward-looking
statements can be identified through the use of words such as "may", "will",
"intend", "plan", "project", "expect", "anticipate", "could", "should",
"would", "believe", "estimate", "contemplate", and "possible".


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