Strong first-quarter performance for Jean Coutu Group.

MONTREAL, Quebec--(BUSINESS WIRE)--Oct. 24, 1995--THE JEAN COUTU GROUP(TSE, ME: PJC.A ) - 75 percent increase in sales - net earnings of $11.2 million or $0.21 per share - dividend of $0.03 per share Montreal, October 24, 1995

For the three months ended August 31, 1995, The JEAN COUTU

GROUP (PJC) Inc. (ticker symbol PJC) recorded total sales and other revenues of $379.5 million, compared with $217.2 million for the corresponding period of the previous year, an increase of 74.7 percent. The Group posted net earnings of $11,240,000 or $0.21 per share, up 23.3 percent over earnings of $9,119,000 for the same period in 1994. Lastly, the Company's cash flow grew by 37.2 percent to $17 million or $0.32 per share.

This performance reflects mainly the October 31, 1994 acquisition of Brooks Drug Stores in the United States, which raised the U.S. subsidiary's sales from CDN$29.1 million to CDN$183.8 million and contributed substantially to the Group's consolidated operating income.

However, this acquisition also increased the Company's depreciation, amortization and interest expenses.Meanwhile, The Jean Coutu Group's Canadian operations improved their results for a third consecutive quarter. For the three-month period, sales and other revenues generated in Canada grew by 4.1 percent over the corresponding quarter of last year to $195.7 million, while profit margins increased slightly.

This gradual improvement is largely attributable to the higher sales and enhanced productivity of the franchise network, which recorded a 4.2 percent increase in sales on a comparable number of outlets. Retail sales for the franchises totalled $354 million, up from $339.8 million for the first quarter of last year, while the network included 228 outlets as at August 31, 1995, compared with 227 one year ago.

"We are especially pleased with our first-quarter results as they confirm the relevance of the streamlining measures we implemented in Canada last year and in particular our major expansion in the United States. The integration of the Brooks network went smoothly, which largely favoured the achievement of our financial objectives in the U.S.," commented Franiois J. Coutu, President and Chief Operating Officer of The Jean Coutu Group.

Mr. Coutu added that this acquisition modified the revenue structure of the Group which, from a company formerly focused on distribution and franchising, now derives half of its revenues from retailing. One effect of the Group's expansion in the retail sector has been to intensify the seasonality of the Company's operations, since the retailing of pharmaceuticals and parapharmaceutical products generally slows down during the summer, followed by an upsurge in the months corresponding to The Jean Coutu Group's second and third quarters.

"Considering this trend and the results recorded during the first quarter, we are confident about The Jean Coutu Group's future performance. In the coming months, in addition to normal seasonal growth, we expect the Company's results to benefit from a steady improvement in our performance in Canada and the consolidation of our new network in the United States.

Closing of Transaction with Rite Aid Corporation in the United States

In this regard, it should be noted that on August 14, 1995, The Jean Coutu Group completed a strategic transaction with Rite Aid Corporation, under which the Company acquired 30 Rite Aid outlets in Massachusetts and Rhode Island, as well as the patient files of six other Rite Aid drugstores in Massachusetts. As part of the agreement, the Group sold its 18 pharmacies and two health and beauty stores in Maine to Rite Aid at the beginning of October 1995.

Michel Coutu, President of the U.S. subsidiary The Jean Coutu Group USA Inc. said that in addition to being advantageous from a financial standpoint, this transaction considerably strengthened the Company's position in the states where its network is most strongly established, particularly Rhode Island and Massachusetts. " We will thus benefit from a greater geographic concentration and substantial economies of scale in terms of advertising and logistic expenses," he concluded.

Dividend

The Board of Directors of The Jean Coutu Group has declared a quarterly dividend of $0.03 per share on Class A subordinate voting shares and Class B shares. This dividend will be paid on November 23, 1995 to all shareholders of record of the Company as at November 9, 1995. -0-

THE JEAN COUTU GROUP (PJC) INC.
CONSOLIDATED EARNINGS (unaudited)
3 MONTH PERIODS ENDED AUGUST 31, 1995 and 1994
(thousands of dollars except for per share amounts)

                                              1995          1994
Sales and other revenues
Canada                                  $  195,698     $ 188,065
United States                              183,806        29,137
                                        __________     _________
                                           379,504       217,202
                                        __________     _________
Expenses
Cost of goods sold, general and
 operating expenses
Canada                                     175,958       169,795
United States                              176,976        28,157
                                        __________     _________
                                           352,934       197,952
Depreciation and amortization                5,729         3,301
Interest on long-term debt                   2,484           712
Other interest                               1,418           216
                                        __________     _________
                                           362,565       202,181
                                        __________     _________
Earnings before and income taxes            16,939        15,021
Income taxes                                 5,699         5,902
Net earnings                             $  11,240      $  9,119
                                        ==========     =========
Earnings and fully diluted earnings
 per share                              $      .21     $     .17
                                        ==========     =========

CONTACT: Francois J. Coutu

President and Chief Operating Officer

514/646-9760