American Drug Stores Inc. Signs Coupon Deal

American Drug Stores Inc.
, a national drug chain whose retail operations include Osco Drug and
Sav-on drugs, has partnered with planet U to provide shoppers with “U-pons”
Internet Coupons.

The service will be available to shoppers in late spring. American Drug
Stores, with 990 stores in 21 states, is a wholly owned subsidiary of American Stores
Co. Financial arrangements with San Francisco-based planet U were not
disclosed.

U-pons, already in use by other supermarket and drug chains, have generated
redemption rates of more than 20 percent on a variety of national branded
products from leading consumer packaged goods manufacturers, American Drugs
said. Traditional coupons average less than 2 percent redemption.

American Drugs’ U-pons program will offer promotional savings on national
brands and American Store Private Label products.

To collect U-pons, shoppers may visit the American Drug Stores Web site,
click on their choices and receive securely printed, copy-resistant coupons
through the U.S. mail that are redeemable at any of the 990 American Drug
Stores locations.

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