Montgomery College Takes Ownership of Former
Giant Food Bakery Property in South Silver Spring
Purchase Will Help to Bolster College's Long-term Growth Opportunities;
$6 Million Price is $1.25 Million Below Market Value, Thanks to Giant Gift

Montgomery College has reached settlement on its purchase of the former Giant Food bakery site in south Silver Spring, as a result of an agreement between the community college and the grocery chain that allowed for the property to be acquired for $1.25 million below its market value.

Dr. Charlene R. Nunley, president of Montgomery College, hailed the transaction as "a move that will help ensure the College will be well-positioned for future growth needs, and one that will compliment immediate expansion plans that will take part of the Takoma Park into south Silver Spring." The College is set to embark on a $90 million, three-building expansion project -- complete with a new pedestrian bridge over the CSX railroad and Metrorail tracks -- that will connect the existing Takoma Park side of the campus with a new portion along Georgia Avenue, in south Silver Spring. Construction will begin on the project in early 2002 and is slated for completion in 2005.

"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," added Nunley. While thanking Giant, the Montgomery College president also reiterated the College's appreciation of the County's support for part of the funding and authorization for the purchase. "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 certainly recognized the pivotal role Montgomery College will play in the successful revitalization of Silver Spring."

The 175,000-square-foot former bakery building -- located on a four-acre parcel just off of Georgia Avenue, south of Burlington Avenue -- sit adjacent to other recently acquired College property that is to be developed as a state-of-the-art health sciences building and community clinic, as part of the planned expansion. It is also next door to the Jesup Blair Park, in which part of the College's planned Violet Blair Janin Cultural Arts Center is to be built. The third new building of the expansion will be a new student services center, along Fenton Street, adjacent to the existing campus property.

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 the fair market value. In exchange, the College agreed to provide the company with a charitable contribution acknowledgment letter and certain naming rights, with respect to the property.

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.

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