Exhibit 99.1


                       RITE AID REFINANCING COMPLETED

  APPROXIMATELY $640 MILLION IN ADDITIONAL FUNDS AVAILABLE TO SUPPORT NEW
                        MANAGEMENT'S TURNAROUND PLAN

            $285 MILLION OF BANK DEBT CONVERTED TO COMMON STOCK


CAMP HILL, PA, June 14, 2000 - Rite Aid Corporation (NYSE, PSE: RAD)
announced today that it has successfully completed its previously announced
refinancing, which makes available approximately $640 million in additional
funds for working capital and general corporate purposes. The refinancing
also extends the maturity dates of a substantial portion of the Company's
debt so that no significant debt matures before August, 2002.

"This refinancing gives us additional funds and time to support the
Company's turnaround plan. We and our 85,000 loyal, hard-working employees
thank our new lenders, our existing lenders, our bondholders and our
vendors for the confidence they've shown in the future of Rite Aid," said
Bob Miller, Rite Aid chairman and chief executive officer.

Rite Aid's refinancing includes a new syndicated $1 billion senior secured
credit facility led by agent Citibank, N.A., which will provide
approximately $640 million in additional funds. The remainder of the
facility was used to repay the Company's $300 million asset securitization
facility and will be used to pay fees and expenses associated with the
refinancing transactions. The new senior secured credit facility, which
matures August 1, 2002, is secured by inventory, accounts receivable and
certain other assets owned by Rite Aid subsidiaries.

Also part of the refinancing is the modification of approximately $3.2
billion of existing indebtedness of Rite Aid, including approximately $2.2
billion of debt led by agent bank J.P. Morgan and held by banks and other
financial institutions, which will now mature August 15, 2002; $213 million
of obligations under synthetic leases; and a total of $467.5 million of
5.5% notes due in 2000 and 6.7% notes due in 2001, approximately $374.3
million of which have been exchanged and approximately $93.2 million of
which the Company has arranged to have refinanced for new 10.5% Senior
Secured Notes due September 15, 2002. In exchange for the extensions and
modifications, all of the modified debt, including the bank debt and the
new notes, is secured by a second lien on the collateral securing the new
$1 billion senior secured credit facility.

The Company also said that as part of the refinancing, $285 million of its
existing bank debt has been converted into Rite Aid common stock at a price
of $5.50 per share. J.P. Morgan, one of the Company's principal lenders,
has converted $200 million of that debt into equity, while 12 other
financial institutions have converted $85 million of that debt into equity.

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
the preparation of restated historic finan cial statements, final audit
adjustments, completion of the SEC's review of the Company's financial
reporting, the outcome of certain litigation against, and governmental
investigations regarding, the Company, and the impact of possible asset
sales or other corporate transactions which the Company is currently
consider ing but the consummation of which is not assured. Additional
factors could include competitive pricing pressures, third-party
prescription reimbursement levels, continued consolidation of the drugstore
industry, consumer preferences, regulatory changes governing pharmacy
practices, general economic conditions, inflation, merchandise supply
constraints, interest rate movements, access to capital, the development of
the Internet market for pharmaceuticals, availability of real estate,
construction and start-up of drugstore and distribution center facilities.
Conse quently, all of the forward-looking statements made in this press
release are quali fied by these and other factors, risks and uncertainties.
Readers are also directed to consider other risks and uncertainties
discussed in documents filed by the Company with the Securities and
Exchange Commission.

Investors:  Dave Jessick (717) 975-5750

Media:  Sara Datz (717) 975-5718