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            [LETTERHEAD OF IMPERIAL HOLLY CORPORATION APPEARS HERE]

NEWS                                        FOR IMMEDIATE RELEASE
                                            Contact: William F. Schwer
                                                     Imperial Holly Corporation
                                                     281/490-9795

                                                     F. Sprague Exley
                                                     Savannah Foods
                                                     912/651-4961



  SAVANNAH FOODS ACCEPTS REVISED $20.25 PER SHARE BID FROM IMPERIAL HOLLY


        Sugar Land, Texas, September 12, 1997 - Savannah Foods & Industries, 
Inc. (NYSE: SFI), a sugar refiner and distributor based in Savannah, Georgia, 
and Imperial Holly Corporation (ASE: IHK), a producer and marketer of refined 
sugar, announced they have entered into a merger agreement pursuant to which 
Imperial Holly will acquire Savannah Foods at a price of $20.25 per share of 
Savannah Foods common stock, comprised of 70% cash and 30% Imperial Holly common
stock.

        The merger agreement provides that Imperial Holly will commence a cash 
tender offer for 50.1% of the Savannah Foods shares at $20.25 per share in 
cash, to be followed by a merger in which 30% of the Savannah Foods shares will 
be converted into $20.25 of Imperial Holly stock, subject to a collar of $13.25 
to $17.25 per share of Imperial Holly stock, and the remaining shares will be 
exchanged for $20.25 in cash. Stockholders will be permitted to elect between 
the cash or stock consideration in the merger, with an ultimate split of 70% 
cash and 30% stock in the acquisition.

        The transaction is subject to the expiration of the waiting period under
the Hart-Scott-Rodino Act, the tender of 50.1% of the Savannah Foods shares 
pursuant to the tender offer, the receipt of financing, and other customary 
conditions. Imperial Holly has received a commitment letter from Lehman Brothers
Commercial Paper Inc. for the funds necessary to complete the transaction.

        Savannah Foods has terminated its previously announced merger agreement 
with Flo-Sun Incorporated and has paid the termination fee due under that 
agreement.

        William W. Sprague, III, President and Chief Executive Officer of 
Savannah Foods, will be President and CEO of Savannah Foods, which will become a
wholly owned subsidiary of Imperial Holly. He also will serve on the Board of 
Directors of Imperial Holly with R. Eugene Cartledge, the Chairman of Savannah 
Foods. Savannah Foods headquarters will remain in Savannah.

         8016 HWY. 90A  .  P.O. BOX 9  .  SUGAR LAND, TEXAS 77487-0009
                   TELEPHONE 281/491-9181  FAX 281/490-9879
   

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        Mr. Cartledge said, "We are thrilled to be able to provide our 
stockholders with an opportunity to realize a significant cash price for their 
shares. At the same time, they will be able to benefit from the strengths to be 
achieved by combining Savannah Foods and Imperial Holly."

        William Sprague, President and Chief Executive Officer of Savannah 
Foods, said, "The combination of Savannah Foods and Imperial Holly is good for 
our stockholders, good for our employees, and good for business. Our 
complementary geographic presence will enable us to provide even better service 
to our customers. I am pleased to participate in this exciting opportunity."

        James C. Kempner, President and Chief Executive Officer of Imperial 
Holly, said, "We have always had great respect for Savannah Foods and its 
people. Both of our companies share the common value of family leadership, and 
both have prospered by offering customers value and by dealing with our 
suppliers in a fair and equitable manner. With our industry undergoing rapid 
change, this shared heritage will be particularly important in the years to 
come. I look forward to working with Bill Sprague in combining the two 
companies."

        Savannah Foods operates three cane sugar refineries located in Georgia, 
Louisiana and Florida, and four sugar beet factories located in Michigan. 
Imperial Holly Corporation, which is headquartered in Sugar Land, Texas, near 
Houston, operates a cane refinery and eight sugar beet factories located in 
Montana, Wyoming, Texas and California.



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