Ahold strengthens US organization in anticipation of further growth

Tuesday, May 23, 2000

Under Tobin's leadership, Ahold USA has grown swiftly from a supermarket group with USD 14.3 billion in sales to a multi-channel food provider with annual sales of over USD 30 billion. The success is also reflected in autonomous annual growth of over 7%, the number of jobs, significant top and bottom line contribution from acquisitions and synergies and the rapid increase in customers shopping over 1,000 Ahold stores in the U.S. Bob Tobin was also instrumental in Ahold's 1998 acquisition of supermarket chain Giant Food, headquartered in Landover, Maryland, and more recently U.S. Foodservice, the number two player in the United States food service sector.

The Ahold Corporate Executive Board has also announced the following appointments:

Bill Grize, currently President and CEO of Stop & Shop, will become President & CEO of Ahold USA, effective September 2000. He succeeds Tobin, to whom he will continue to report. All Ahold USA retail operating companies and support groups will report to Grize.

Steve Odland, currently President and CEO of Tops Markets, will become Chief Operating Officer (COO) of Ahold USA, effective June 2000. In his new position Odland's primary focus will be on future growth opportunities across all companies in areas such as marketing, IT, e-commerce and new ventures, including transitioning new channels of trade into Ahold USA. He will report to Grize.

Marc Smith, currently Chief Operating Officer (COO) of Stop & Shop, will become President & CEO of Stop & Shop, effective September 1, 2000. He succeeds Grize.

Frank Curci, currently Chief Operating Officer (COO) of Tops Markets will become President & CEO of Tops Markets, effective June 2000. He succeeds Odland.

Both Smith and Curci have extensive executive experience in Ahold USA and are well prepared for these critical leadership positions. Both will report to Grize.

Marsh Collins will continue as President and CEO of Ahold USA Support Services. His primary responsibilities include the direction of all supply chain activities in the U.S., synergy initiatives and the development and implementation of integration plans. He will report to Grize.

Jim Miller, President and CEO of U.S. Foodservice, will continue to report to Bob Tobin.

Operations integration

Ahold has also announced that its Edwards store chain in New York and New Jersey, currently a division of Giant Food Stores headquartered in Carlisle, Pennsylvania, will be converted to Stop & Shop.

Comments by Cees van der Hoeven, President and CEO of Royal Ahold

'The appointment of Bob Tobin to Chairman of Ahold USA is much deserved. It recognizes the considerable contribution Bob has made to the growth of our U.S. operations in a short period of time. He not only boosted our U.S. business, but also had a keen eye for the development of senior management at our operating companies. Though Ahold is also growing rapidly in Europe and Latin America, the importance and success of our U.S. operations are obvious. They represent the largest portion of our worldwide business. Bob has brought all U.S. companies under one roof while enabling them to maintain their own identity. They all benefit from economies of scale and major synergies. Bill Grize, Bob's successor at Stop & Shop, is a seasoned executive. His track record at Stop & Shop and his credibility within the industry will serve him well in leading Ahold USA to even greater achievements. He is respected by our senior executives both in the USA and other parts of the Ahold world. With all new appointments, we're confident the success of our U.S. operations will be sustained in the years to come.'

Comments by Bob Tobin

'In the past three years Ahold USA has experienced spectacular growth. Our over 1,000 stores along the eastern seaboard have become the preferred shopping locations for millions of U.S. families. I'm proud of this joint accomplishment and pleased to announce the promotion of some of our seasoned and well-experienced executives who played a vital role in Ahold's success. In their new positions they can use their considerable skills for our total organization. My task, when accepting the position of President and CEO of Ahold USA in Summer 1998, was not only to grow our company but also build an organization capable of driving our business into the future. While we have doubled volume and returns we also developed an extremely talented group of executives. They know each other well and are fully committed to excellence in all aspects of our business. With the appointments we announced today, the company is set for a new period of continued growth.'

Ahold in the U.S.

Ahold currently owns five large successful supermarket operating companies along the eastern seaboard as well as U.S. Foodservice, the second-largest food service distributor in the United States. With annualized sales in the United States approaching USD 30 billion, a combined store count of 1,063, a nationwide food service operation and a planned stake in Peapod, the country's sophisticated internet grocer, Ahold is set for sustained profitable growth in the United States in the years ahead. It currently ranks fourth in the country in terms of sales. The five Ahold operating companies are Stop & Shop, Giant-Landover, Giant-Carlisle, Tops and BI-LO.

Royal Ahold

Royal Ahold operates 7,000 supermarkets, hypermarkets, and other store formats in the United States, Europe, Latin America and Asia with annualized sales approaching USD 50 billion. Ahold services the food needs of over 30 million loyal customers in 23 countries every week. Ahold shares are listed in Amsterdam (Ahold) and as ADRs on the New York Stock Exchange (AHO). Ahold shares are also listed in Zurich, Switzerland. Ahold's website can be found at www.ahold.com.