Contact: Marie McGeehan at Casey Communications, Inc., 314/962-0944 or Dee

Wetzel at Schnuck Markets, 314/994-4608.

August 25, 1999

Schnuck Markets Brings Extensive Product Variety and Selection,

Best Value and Outstanding Customer Service to Pekin Customers

PEKIN, Ill - Schnuck Markets Inc. today began offering to Pekin customers extensive product variety and selection, and great value and customer service when it opened the former Mr. K's Super Saver at 1001 Court St. as Schnucks Supermarket.

Schnucks took over the 53,000-square-foot store on Aug. 22 and for two days and nights Schnucks associates have been readying the store for today's grand opening. The store is the first Schnucks in the Pekin-Peoria community.

Schnucks is the 22nd largest food retailer in the United States according to the trade organization, Food Marketing Institute. In 1998, Schnucks ranked 89th on Forbes' list of "The Top 500 Private Companies."

Schnucks is nationally known for its outstanding operations and innovations.

Schnucks' deli operations have been named one of the Top 10 supermarket delis in the United

States. In 1999, Schnucks was named one of the top 10 retailers for category management.

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"We are excited to begin serving Pekin customers," said Craig D. Schnuck, chairman and chief executive officer. "Because of our size and the resulting increased buying power, we can bring a broader variety of products at excellent values."

The store will be open 24 hours, seven days a week. About 125 associates staff the store.

Quality and Value

Noticeable on the store shelves is the addition of more than 1,100 Schnucks brand private label products throughout all departments. Schnucks brand products meet or exceed the quality of leading national name brands and sell at prices lower than national brands.

"Customers don't buy our products just for the price. Our products are popular because of their quality and excellent value," said Schnuck.

The dairy department is one example of a department where customers will enjoy a wide selection of quality Schnucks brand products. Schnucks' dairy products are produced by Schnucks' Mid States Dairy in St. Louis. Since Schnucks began entering the dairy product quality competitions at the Missouri State Fair seven years ago, Schnucks' dairy products routinely have won top honors. Products include a full line of milk products, cottage cheese, yogurt, cream products, sour cream, onion dip, eggnog and orange juice.

Expanded Product Variety and Convenience

Customers will find a wider variety of top-quality produce products along with an expanded variety of bakery offerings including a large variety of decorated cakes, pies, bagels,

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Danish, coffee cakes and cookies plus a line of crusty bread products and the Healthy Living line of low-fat or no-sugar cakes, brownies and muffins. In-store custom cake decorating will be available.

Schnucks brings its nationally-recognized expertise to the deli department and will expand the deli department offerings and introduce Schnucks' Chef's Express fresh prepared hot and cold carry-out food items. Products such as pot pies and lasagna will provide convenient, quality meals and will help busy Pekin customers save time preparing meals.

"Our customers lead busy lives and we want to offer them the products and convenient services they require," said Schnuck.

Customers will appreciate Schnucks' introduction of Certified Angus Beef, highly regarded as the best beef available. The USDA Grading Service, an unbiased, third party, identifies Certified Angus Beef according to rigid specifications. Extensive marbling is the major factor that contributes to the characteristic flavor and juiciness of Certified Angus Beef.

The seafood department will add varieties of shrimp and smoked fish.

For added convenience, customers will not be required to use a special card to obtain low prices and savings on specials. Schnucks offers Everyday Low Prices on the items customers buy most often along with weekly Pricebreaker and Special Buy items.

The floral department features ready-to-go fresh flower arrangements. Customers can order flowers to be shipped anywhere throughout the country.

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Innovation

Customers will be able to better track their purchases at the checkout lanes thanks to the installation of a new personal computer checkout system.

Color computer monitors at each checkstand will be the most visible element of the new computer system. The system enables customers to see their running total as well as the last eight to 12 items scanned, which helps ensure customers' confidence in pricing accuracy.

The system also replaces a manual process used to inventory products on shelves with a

more timely and efficient re-order system to ensure products are in stock.

"It has been our experience that customers appreciate this customer-friendly technology,"

says Schnuck.

While the new checkstands were being installed, store checkers and service center associates were trained on the new system at Schnucks' Bloomington, Ill., store in time for the grand opening in Pekin.

"The Friendliest Stores In Town"

Schnucks' slogan is "The Friendliest Stores in Town."

"Given our presence in Central Illinois, we think Pekin customers will recognize our name and the values and service that go along with it," said Schnuck. "Customers with any questions should feel free to contact any of the store managers."

Store Manager Russ Braidlow brings to Pekin 26 years of food retailing experience. Before joining Schnucks in 1995, he served as an assistant manager for National Supermarkets in

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Rolla, Mo., for 15 years. Braidlow was promoted to store manager when Schnucks acquired National. Prior to being named Pekin manager, he managed a 65,000-square-foot supercenter located in O'Fallon, Mo.

Co-Manager Eric Snow joined Schnucks almost 10 years ago, as a general merchandise clerk when Schnucks opened its Bloomington store. Prior to moving to Pekin, Snow served as drug store manager in Bloomington.

Holly Warren, customer service manager, joins the Pekin store from her position as assistant general merchandise manager in Champaign, Ill. She joined Schnucks in 1995 when Schnucks acquired National Supermarkets and served as general merchandise manager. Prior to joining National, Warren was with Kroger Supermarkets.

The opening of the Pekin store brings to eight the number of Schnucks in Central Illinois and a total of 26 stores in Illinois.

Schnuck Markets, Inc. currently operates 92 stores in Missouri, Illinois and Indiana. The family-owned company was founded in St. Louis in 1939.

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