Royal Ahold (NYSE: AHO – news), the international food provider, priced a USD 700 million Yankee Bond, offered by Ahold’s wholly owned subsidiary Ahold Finance U.S.A., Inc.

The offering, pursuant to Ahold’s USD 3 billion shelf registration statement, was priced at 209 basis points over Treasuries, to yield 8.259%. Because of very strong demand, the size of the issue was enlarged from USD 500 million to USD 700 million.

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The securities will be fully and unconditionally guaranteed by Royal Ahold. The proceeds will be used to refinance existing debt of U.S. Foodservice, acquired by Ahold in April 2000.

J.P. Morgan & Co. acted as book runner with Morgan Stanley Dean Witter as joint lead manager.

Background

Royal Ahold is a rapidly growing international food provider with leading supermarket operations in the United States, Europe, Latin America and Asia. The company operates more than 7,000 supermarkets, hypermarkets and specialty stores with annualized sales approaching USD 50 billion. The company services more than 30 million weekly customers. In the United States Ahold is the leading supermarket operator along the eastern seaboard with more than 1,000 stores (including Stop & Shop, Giant, Tops, and BI-LO), a nationwide food service operation (U.S. Foodservice) and prominent e-commerce activities. Annualized US sales approach USD 30 billion.

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In addition to its listing on the New York Stock Exchange (NYSE: AHO – news), Ahold’s shares are trading on the Amsterdam Exchanges and on the Swiss Exchange. Additional information is available on Ahold’s website: http://www.ahold.com.

Royal Ahold press releases may contain `forward-looking statements’. Actual results may differ from such statements as they may have been influenced by factors beyond the company’s ability to control.