BI-LO Receives Interim Court Approval of Revised Financing Facility

Receives Commitment of $125 million from GE Capital

GREENVILLE, SC – April 5, 2009 – BI-LO, LLC and certain affiliates (the Company) today announced it has received interim Court approval of a revised debtor-in-possession (DIP) financing facility of $125 million received from GE Capital.

We are pleased to have reached this agreement and to have received interim Court approval to access this DIP financing. Over the course of the past week, we have evaluated several DIP financing proposals from multiple lenders. The revised agreement we have reached with GE Capital provides us with more liquidity on better overall terms than originally proposed, said Michael Byars, President and Chief Executive Officer of BI-LO.

Mr. Byars added, While BI-LO continues to have significant operational momentum and intends to fund operations primarily through its cash on hand and cash generated from operations, this interim DIP financing further strengthens the Company’s financial position. We remain committed to offering our customers the same top quality brands and high quality fresh foods, all at a great value.

Additional information about the restructuring is available on the Company’s website www.bi-lo.com. For access to Court documents and other general information about the Chapter 11 case, please visit www.kccllc.net/BI-LO.

About BI-LO

Headquartered in Mauldin, S.C., BI-LO operates 215 supermarkets in South Carolina, North Carolina, Georgia and Tennessee and employs approximately 15,500 people.

For more information, go to: http://www.bi-lo.com/