Pennsylvania AG Resolves Antitrust Concerns Surrounding Merger Of Rite Aid Corporation And Jean Coutu Group, Inc.

June 4, 2007 -- HARRISBURG - Pennsylvania Attorney General Tom Corbett today announced an agreement requiring Pennsylvania-based Rite Aid Corporation to divest stores in five Pennsylvania markets, where it is acquiring stores from Jean Coutu Group, Inc, the owner of Eckerd Drug Stores. Under the agreement, the five stores will be sold to other retail drug chains in sections of Lackawanna, Fayette, Mercer, Butler, and Luzerne counties, eliminating concerns about potential monopolies.

The multi-state agreement resolves antitrust concerns about Rite Aid's acquisition of the U.S. drug store assets of Jean Coutu, Inc. Rite Aid is the nation's third largest retail drug store chain and Jean Coutu currently operates the fourth largest U.S. drug store chain, which includes Eckerd and Brooks drug stores.

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"This agreement preserves competition among drug store retailers," Corbett said. "It is important that Pennsylvania consumers have choices about where to shop and where to find competitive prices."

The buyers for the Pennsylvania Rite Aid stores being divested are:

* The Medicine Shoppe
Moscow, Lackawanna County
* Medicine Shoppe
Brownsville, Fayette County
* Medicine Shoppe
Mercer, Mercer County
* Walgreens
Harmony, Butler County
* Weiss
Mountain Top, Luzerne County

The states' investigations were coordinated with an investigation by the Federal Trade Commission (FTC.) The FTC has reached an agreement with Rite Aid that requires the sale of 23 stores to competing drug store operators, including the five divested stores in Pennsylvania. There are a total of 26 required divestitures among the six states.

Corbett said the multi-state investigation included Maine, Maryland, New Jersey, New York, Pennsylvania, Vermont, and Virginia.

Source: Pennsylvania Attorney General