Montgomery College, Giant Food Reach Agreement
On Acquisition of Former Bakery Site in South Silver Spring
Purchase Would Bolster College's Long-term Expansion Opportunities

In a move that will bolster long-term expansion opportunities for its existing Takoma Park Campus, Montgomery College has reached an agreement with Giant Food Inc. that clears the way for the College's acquisition of the former Giant bakery site in south Silver Spring. The four-acre property -- just off of Georgia Avenue, south of Burlington Avenue -- sits adjacent to other recently acquired College property that is to be developed as part of a phased, three-building expansion of the campus that will take place between now and 2005.

Recognizing the strategic importance of the former bakery site to the College's future growth possibilities, Giant agreed to sell the property to the College for $6 million, a price estimated to be $1.25 million below fair market value. In exchange, the College has agreed to provide the company with a charitable contribution acknowledgment letter and certain naming rights, with respect to the property.

Completion of the Giant property acquisition is contingent upon the County's authorization of the College's use of self-funding and on its approval of the issuance of County general obligation bonds. Montgomery County Executive Douglas M. Duncan expressed his support for the acquisition last week, through a recommendation letter to the County Council, which has final authority on approval of the acquisition.

"We are extremely pleased to have reached this agreement, pending final approval, of course, from the County," said Dr. Charlene R. Nunley, president of Montgomery College. "Giant has long been an outstanding corporate leader in our community and has once again demonstrated that leadership, through its generous contribution to the College, in the below-market value sale of this property. The acquisition of this site for future growth possibilities, combined with the excitement of the Takoma Park campus's impending expansion westward into south Silver Spring, will help to put our oldest -- and what has been our most space-challenged -- campus on a very solid footing for years to come.

"We are very appreciative of the expressions of support that we have already received for this agreement from our local officials," added Dr. Nunley. "I would particularly note the leadership of County Council Education Committee Chair Michael Subin, who was really instrumental in bringing this together, and of County Executive Doug Duncan, who has clearly recognized the pivotal role Montgomery College can play in the successful revitalization of Silver Spring."

Dick Baird, president and chief executive officer of Giant, said, "After we closed our bakery in January 2000, there was a great amount of interest from developers as well as by Montgomery College to purchase the property. While we have a fiduciary responsibility to our shareholders, we also realized how strategically important our property was to the future expansion of Montgomery College. We are delighted that we are on our way to finalizing the transfer of our Giant bakery property in Silver Spring to Montgomery College."

Pending the required County approval, Montgomery College and GFS Realty, Inc., Giant's real estate subsidiary, expect to settle on the property transaction by the end of July.

Giant Food is a subsidiary of Royal Ahold (NYSE: AHO), a leading food provider in the United States and elsewhere in the world with total 2000 consolidated sales of close to $50 billion. Over 60% of its worldwide sales are currently generated in the United States. Its five U.S. supermarket operations generate sales of over $27 billion and include Stop & Shop in Massachusetts, Connecticut, Rhode Island, New Jersey and New York; Giant Food in the District of Columbia and Maryland, Virginia, New Jersey and Delaware; Giant Food Stores in Pennsylvania, Maryland, Virginia and West Virginia; Tops Markets in western New York state, Ohio and Pennsylvania; and BI-LO in the Carolinas, Georgia, Tennessee and Alabama. Ahold has also developed a strong presence in the rapidly growing American food service sector. U.S. Foodservice and the recently acquired PYA/Monarch food service company have operations across America and combined sales of approximately $12 billion. Ahold USA also has effective e-commerce operations in which Peapod, the leading food e-tailer plays a growing role.

Montgomery College is the largest and oldest community college in Maryland, serving Montgomery County and the region for more than 50 years. The College offers more than 125 degree and certificate programs for students who wish to pursue an associate’s degree, transfer to a four-year college or university, enter into the job market, or upgrade career skills. The College has three main campuses at Germantown, Rockville, and Takoma Park, Maryland, and satellite facilities for Workforce Development and Continuing Education throughout Montgomery County.