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Winn-Dixie Rewards Customer Loyalty

March 7, 2002

Winn-Dixie will launch the new Customer Reward Card, the first such reward program of its kind by a major Florida grocer. Beginning today, shoppers in most Florida and southeast Georgia Winn-Dixie stores can register to participate in a new program that will provide ongoing benefits that include merchandise discounts and other special incentives. The Customer Reward Card is part of a major initiative to focus on superior customer relationship marketing that reinforces the company's new Real Deal brand positioning.

In addition to ongoing store discounts, other benefits of the Customer Reward Card will include automatic sweepstakes entries, notification of special events, participation in specialty merchandise clubs and discounts on services provided by select marketing partners. Cardholders also have access to program information and support online at www.wdreward.com or by calling atoll free 1-866-WDREWARD.

Moderator Comment: Has Winn-Dixie turned it around?

Back in April 2000, Winn-Dixie announced a major restructuring so that it could stay competitive in the markets it serves. Mr. Rowland, the then new president and CEO, did his very best Jack Welch imitation. Thousands were let go as the chain closed stores, regional offices, and manufacturing facilities. Long-time company execs found themselves on the outs as Mr. Rowland went about remaking the chain.

The chain has not made it all the way back but performance is improving. Chain-wide sales and earnings are up and the company has made prepayments on $150 million of its roughly $400 million in bank notes. [George Anderson - Moderator]

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