Exhibit
10.1


 


PRESS
RELEASE


 


	
  FOR IMMEDIATE RELEASE

  	
  EAGLE FOOD CENTERS

  
	
   

  	
   

  
	
   

  	
   

  	
  P.O.
  Box 6700, Rock Island, Illinois 61204-6700

  
	
   

  	
   

  	
  Executive
  Offices & Distribution Center

  
	
   

  	
   

  	
  Route
  67 & Knoxville Road, Milan, Illinois 61264

  
	
   

  	
   

  	
  Telephone:  309-787-7700/Fax: 309-787-7895

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FROM:

  	
  Randall
  D. McMurray

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TITLE:

  	
  Vice
  President-Controller and

  Acting Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DATE:

  	
  March
  7, 2003

  



 


Eagle
Receives Waiver Extension


 


Milan, Il. - March 7, 2003 - Eagle Food Centers
Inc.,  (NASDAQ:
EGLE) announced today that it has received an extension on the Limited Waiver
Agreement with Congress Financial Corporation (Central).  The waiver agreement calls for Congress
Financial Corporation to waive any default rights under the adjusted net worth
covenant in the Second Amended and Restated Loan Agreement until April 5, 2003.


 


“We are very pleased with the confidence that Congress Financial
Corporation has exhibited by granting us an additional waiver extension.  We believe that this extension will allow us
to continue to explore all options available to the Company,” said Robert
Kelly, Chairman and CEO.


 


The Company also announced that its current Collective Bargaining
Agreement with UFCW Locals 881 and 1546 has been extended to August 1, 2003.
The Union agreement originally expired on November 16, 2002 and has been
extended by three prior agreements. 
“The extension to our Collective Bargaining Agreement ensures that our
employees will continue to provide our customers with the same high standards
of service they have come to expect from Eagle Food Center stores.” Mr. Kelly
added.


 


Eagle Food Centers, Inc. is a leading regional supermarket chain
headquartered in Milan, Illinois, operating 61 stores in northern and central
Illinois and eastern Iowa under the trade names of Eagle Country Market, Foodco
and BOGO’S Food and Deals.


 


###


 


This press release includes statements that
constitute “forward-looking” statements. 
These statements are made pursuant to the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995.  Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements.  Factors
that could cause or contribute to such differences include, but are not limited
to,  continued acceptance of the
Company’s products in the marketplace, the effect of economic
conditions, the impact of competitive stores and pricing, availability and
costs of inventory, employee costs and availability, the rate of technology
change, the cost and uncertain outcomes of pending and unforeseen litigation,
the availability and cost of capital including the continued availability of
capital under the Revolver, supply constraints or difficulties, the effect of
the Company’s accounting policies, the effect of regulatory and legal
developments and other risks detailed in the Company’s Securities and Exchange
Commission filings or in materials incorporated therein by reference.  By making
these forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this press
release.