SALT LAKE CITY, April 29 /PRNewswire/ -- American Stores Company
(NYSE: ASC) announced today that it has priced a public offering consisting of
$100 million of 7.90 percent debentures due May 1, 2017 at 99.961 percent to
yield 7.904 percent and $200 million of 7.50 percent debentures due May 1,
2037 at 99.712 percent to yield 7.537 percent.  The $200 million, 40-year
debentures are redeemable at the option of each of the registered holders on
May 1, 2009.
    The $100 million, 20-year issue was priced at a spread of 85 basis points
above the 30-year Treasury bond and the $200 million, 40-year issue was priced
at a spread of 75 basis points above the 10-year Treasury note.  The
underwriters for the debentures are J. P. Morgan and Co., Chase Securities
Inc., Morgan Stanley & Co. Incorporated and Salomon Brothers Inc.
    The net proceeds of the offering will be used to refinance short-term
variable rate borrowings under the Company's principal bank credit agreement
and for general corporate purposes.
    American Stores Company is one of the nation's largest food and drug
retailers.  It operates 1,695 stores in 27 states, including 166 jointly
operated combination stores that are counted as two stores.  Its principal
retail operations include Lucky Stores, Jewel Food Stores, Acme Markets, Jewel
Osco, 0sco Drug, and Sav-on.

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