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

Wetzel at Schnuck Markets, 314/994-4608.

June 29, 2000

Schnuck Markets UFCW Local 655 Associates Ratify Contract

ST. LOUIS – Schnuck Markets Inc. associates who are members of United Food & Commercial Workers Local 655 approved a contract proposal today by a vote of 1,513 to 918.

The three-year contract will be implemented immediately retroactive to June 12, 2000, when the previous contract expired. The contract covers 6,886 members from 60 St. Louis area stores.

“We are pleased with the ratification and that our associates recognized this was an outstanding contract,” said Craig D. Schnuck, chairman and chief executive officer. “This contract recognizes the importance of our associates and the excellent service they provide our customers.”

The new contract includes: 1) wage increases of $1.75 an hour over three years, the highest average annual hourly increase since January 1999 among UFCW locals in major metropolitan areas; 2) continued 100 percent funding by Schnucks of the current health and

welfare program; 3) pension increases for all associates; and other improved benefits.

“From the beginning of negotiations, our goal has been to reach an agreement which provides associates with an above average wage increase, maintains the excellent health and welfare and pension benefits and also helps us contain costs so we will remain competitive,” said Schnuck.

“We achieved our first two goals, however, the cost of these changes greatly exceed the current rate of food price inflation and will have a significant impact on our operational costs. It is very likely we will have to close some stores because of these new contract costs,” said Schnuck.

Schnuck Markets has a history of good relations with labor and currently has agreements with 31 labor unions in close to 15 communities. Since its founding in 1939, there has only been one brief work stoppage in Schnucks history in the early ‘70s.

Schnuck Markets, Inc. currently operates 93 stores in Missouri, Illinois and Indiana. The family-owned company was founded in St. Louis in 1939.

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