BRUSSELS, Belgium, September 7, 2000 - Delhaize "Le Lion" ("Delhaize Group"), an international food retailer operating in 11 countries on three continents, today announced that its Board of Directors has approved a proposal to increase to 100 % its ownership of Delhaize America, Inc. (NYSE: DZA and DZB), the Salisbury, N.C.-based company that is the largest operating company in the global supermarkets group.

The Board of Directors of the Delhaize Group (Brussels Stock Exchange: Reuters DELBt.Br - Bloomberg DEHT BB) has unanimously approved a proposal, sent in a letter on September 6, 2000 to the Chief Executive Officer of Delhaize America, to exchange Delhaize Group stock for all of the outstanding shares of Class A and Class B common stock of Delhaize America not currently held by Delhaize Group. The Delhaize Group currently owns approximately 37 % of Delhaize America's Class A (non-voting) common stock and approximately 56% of Delhaize America's Class B (voting) common stock, or approximately 45 % of Delhaize America's total shares outstanding.

Public shareholders of Delhaize America would receive 0.35 Delhaize Group common shares in exchange for each share of Class A and Class B common stock of Delhaize America. Using each company's 20 trading days average stock price (ending September 5, 2000), this offer represents a 32 % premium above Delhaize America's average price for the blended A- and B-shares. The respective 20-day averages are EUR 64.76 (equivalent to US$57.66) for Delhaize Group and US$15.29 (blended price) for Delhaize America. Delhaize Group also said it intends to structure the transaction to be tax-free to Delhaize America shareholders for United States federal income tax purposes.

After the transaction is completed, the shareholders of Delhaize America and Delhaize Group will hold one class of shares with identical voting rights. Upon closing, the Delhaize Group intends to list its shares in the U.S. on the New York Stock Exchange in the form of American Depository Receipts (ADRs) and continue its listing on the Brussels Stock Exchange (Belgium) as ordinary shares. The ADR's, which will represent an interest in underlying shares of the Delhaize Group, would be intended to facilitate trading in the U.S.

The offer to exchange, approved by the Delhaize Group Board, is contingent on acceptance by the Board of Delhaize America after approval by and recommendation of the special committee of independent directors of the Board of Directors of Delhaize America, approval by Delhaize America shareholders at a shareholders meeting, certain approvals by the Delhaize Group shareholders at a shareholders meeting and other conditions customary in transactions of this type.

The Delhaize Group also announced that its Board of Directors will request shareholder approval of a proposal that would authorize the Board to buy back its shares up to the legal maximum amount and increase capital.

"The transaction would create a simplified structure, thus increasing the Delhaize Group's ability to leverage capital and human resources and to capitalize on growth opportunities throughout the United States and the world", stated Pierre-Olivier Beckers, Chief Executive Officer and President of the Delhaize Group.

"These initiatives are intended to significantly benefit all of the Group's key constituencies - employees, customers, shareholders, suppliers and local communities - by strengthening Delhaize America's ability to compete at a time when the U.S. supermarket industry is undergoing strong competitive pressures."

"The Board and Management of the Delhaize Group are confident that the Board's proposal for the company to become a stronger international food retailer will be viewed favorably by the Delhaize America shareholders. This is especially true in the United States, where Food Lion, Hannaford and Kash n' Karry form an unrivalled group of complementary companies. This offer brings together two companies that have been partners for 26 years."

The transaction proposal is structured to be in the best interest of all shareholders and other concerned constituencies. It would:

The Delhaize Group is a food retailer headquartered in Belgium and listed on the Brussels Stock Exchange. The Delhaize Group operates in 11 countries, in 1999 achieved sales of EUR 14.3 ($ 15.3 billion) and net earnings amounting to EUR 169.9 million ($ 181.0 million). The Delhaize Group employs 145,000 people.

The Delhaize Group is being advised in this transaction by Schroder Salomon Smith Barney.

The Delhaize Group has established a toll-free U.S. hotline at 800-619-3688 for investor questions. Questions can also be emailed to [email protected], and additional information will be posted on the company's website at http://www.delhaizegroup.com. This press release is available in English, French and Dutch.