FOR IMMEDIATE RELEASE

     Contacts:
     Imperial Holly:     William F. Schwer (281) 490-9795
     Savannah Foods:     F. Sprague Exley (912) 651-4961


          Savannah Foods Accepts Revised $20.25 Per Share Bid
                        From Imperial Holly


          Savannah, GA, September 12, 1997 - Savannah Foods &
     Industries, Inc. (NYSE: SFI), a sugar refiner and distributor
     based in Savannah, Georgia, and Imperial Holly Corporation
     (ASE: IHK), a producer and marketer of refined sugar,
     announced they have entered into a merger agreement pursuant
     to which Imperial Holly will acquire Savannah Foods at a price
     of $20.25 per share of Savannah Foods common stock, comprised
     of 70% cash and 30% Imperial Holly common stock.

          The merger agreement provides that Imperial Holly will
     commence a cash tender offer for 50.1% of the Savannah Foods
     shares at $20.25 per share in cash, to be followed by a merger
     in which 30% of the Savannah Foods shares will be converted
     into $20.25 of Imperial Holly stock, subject to a collar of
     $13.25 to $17.25 per share of Imperial Holly stock, and the
     remaining shares will be exchanged for $20.25 in cash. 
     Stockholders will be permitted to elect between the cash or
     stock consideration in the merger with an ultimate split of
     70% cash and 30% stock in the acquisition.

          The transaction is subject to the expiration of the
     waiting period under the Hart-Scott-Rodino Act, the tender of
     50.1% of the Savannah Foods shares pursuant to the tender
     offer, the receipt of financing, and other customary
     conditions.  Imperial Holly has received a commitment letter
     from Lehman Brothers Commercial Paper Inc. for the funds
     necessary to complete the transaction.

          Savannah Foods has terminated its previously announced
     merger agreement with Flo-Sun Incorporated and has paid the
     termination fee due under that agreement.

          William W. Sprague III, President and Chief Executive
     Officer of Savannah Foods, will be President and CEO of
     Savannah Foods, which will become a wholly owned subsidiary of
     Imperial Holly.  He also will serve on the Board of Directors
     of Imperial Holly with R. Eugene Cartledge, the Chairman of
     Savannah Foods.  Savannah Foods headquarters will remain in
     Savannah.

          Mr. Cartledge said, "We are thrilled to be able to
     provide our stockholders with an opportunity to realize a
     significant cash price for their shares.  At the same time,
     they will be able to benefit from the strengths to be achieved
     by combining Savannah Foods and Imperial Holly."

          William Sprague, President and Chief Executive Officer of
     Savannah Foods, said, "The combination of Savannah Foods and
     Imperial Holly is good for our stockholders, good for our
     employees, and good for business.  Our complementary
     geographic presence will enable us to provide even better
     service to our customers.  I am pleased to participate in this
     exciting opportunity."

          James C. Kempner, President and Chief Executive Officer
     of Imperial Holly, said, "We have always had great respect for
     Savannah Foods and its people.  Both of our companies share
     the common values of family leadership, and both have
     prospered by offering customers value and by dealing with our
     suppliers in a fair and equitable manner.  With our industry
     undergoing rapid change, this shared heritage will be
     particularly important in the years to come.  I look forward
     to working with Bill Sprague in combining the two companies."

          Savannah Foods operates three cane sugar refineries
     located in Georgia, Louisiana and Florida, and four sugar beet
     factories located in Michigan.  Imperial Holly Corporation,
     which is headquartered in Sugar Land, Texas, near Houston,
     operates a cane refinery and eight sugar beet factories
     located in Montana, Wyoming, Texas and California.