000445 Winn-Dixie Announces Major Restructuring Program

Jacksonville, FL - Winn-Dixie Stores, Inc. announced a major restructuring to improve the support of its retail stores and improve the Company's overall efficiency. These changes also will improve the Company's competitive position to focus on future growth.

Al Rowland, President and Chief Executive Officer, stated that, “After an extensive evaluation of procedures, and validation from outside consultants, we are restructuring the company. These changes are absolutely necessary to provide Winn-Dixie with an effective infrastructure to train and support operations management teams. The savings created by this reorganization and operations improvements are very achievable; we will be more efficient operators. We also will be better able to serve our customers' needs.”

Dano Davis, Chairman, said, “Today's grocery business is probably the most competitive in our 75-year history. We appreciate the contribution of those who have brought the company to this point. The future brings new challenges and we have done our homework. Implementation of our restructuring plan will help insure continued growth and improved performance for our company and increased value for shareholders.”

The restructuring includes the following actions that will be implemented over the next 12 months:

Executive management reduction and realignment Division management reduction and realignment Centralization of procurement, marketing and merchandising Consolidation of division offices eliminating three division offices -

Tampa, Atlanta, and Midwest

Closing of 114 unprofitable stores Closing of one warehouse facility -- Tampa, Fla. Closing of two manufacturing facilities -- Detergent and Bag Plant Retrofitting approximately 600 stores to improve efficiency and customer service Restructuring will eliminate approximately 11,000 positions.

As a result of the restructuring the Company will record a pre-tax charge of approximately $450 million to $550 million ($275 million - $336 million after tax or $1.87 - $2.29 per diluted share). Approximately $400 million of the pre- tax charge ($245 million after tax or $1.66 per diluted share) will be recorded in the fourth quarter of fiscal 2000 with the balance in fiscal 2001. The Company expects a reduction in expenses of approximately $400 million per year ($245 million after tax or $1.66 per diluted share) approximately one year following completion of the restructuring.

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