Rite Aid Completes Comprehensive Plan to Refinance Accounts Receivable Securitization Facilities

CAMP HILL, Pa.--(Business Wire)--
Rite Aid Corporation (NYSE:RAD) announced today the successful completion of its
previously announced comprehensive plan to refinance its existing first lien
accounts receivable securitization facility and second lien accounts receivable
securitization facility due September 2010. As of October 23, 2009, there was
$475 million outstanding under the securitization facilities. The refinancing
consists of an offering of $270 million aggregate principal amount of 10.250%
senior secured notes due 2019 (with a yield to maturity of 10.375%, based on an
offering price of 99.242% per note), commitments to increase the maximum
borrowing capacity under Rite Aid's existing senior secured revolving credit
facility from $1.0 billion to $1.175 billion, and an increase in borrowings
under Rite Aid's existing $525 million senior secured term loan due June 2015 by
$125 million to $650 million. As a result of the refinancing, Rite Aid has
refinanced all of its September 2010 debt maturities.

The notes are unsecured, unsubordinated obligations of Rite Aid Corporation and
are guaranteed by substantially all of Rite Aid's subsidiaries. The guarantees
are secured on a second lien basis. The notes and the related subsidiary
guarantees were offered in the United States to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and outside the United States pursuant to Regulation S under
the Securities Act. The notes and the related subsidiary guarantees have not
been registered under the Securities Act and may not be offered or sold in the
United States without registration or an applicable exemption from the
registration requirements.

Rite Aid is one of the nation's leading drugstore chains with more than 4,800
stores in 31 states and the District of Columbia and fiscal 2009 annual sales of
more than $26.3 billion. Information about Rite Aid, including corporate
background and press releases, is available through Rite Aid's website at
www.riteaid.com.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of notes in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction.

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; general economic conditions, inflation and interest
rate movements; our ability to improve the operating performance of our stores
in accordance with our long term strategy; our ability to realize same store
sales growth; our ability to hire and retain pharmacists and other store
personnel; the efforts of private and public third-party payors to reduce
prescription drug reimbursements and encourage mail order; competitive pricing
pressures, including aggressive promotional activity from our competitors;
decisions to close additional stores and distribution centers, which could
result in further charges to our operating statement; our ability to manage
expenses; our ability to realize the benefits from actions to further reduce
costs and investment in working capital; continued consolidation of the
drugstore industry; changes in state or federal legislation or regulations; and
the outcome of lawsuits and governmental investigations. 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 Rite Aid
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".

Rite Aid
Investors:
Chris Hall, 717-214-8834
investor@riteaid.com
or
Media:
Karen Rugen, 717-730-7766

Copyright Business Wire 2009