Grocery Outlet Delivers Gold and Horsepower ''Under the Rainbow''; Over $250,000 in Fantastic Prizes at Each Participating Store

Business Wire, August 23, 2005

BERKELEY, Calif. -- Grocery Outlet Inc., has just introduced "UNDER THE RAINBOW," a new scratch and win game, at select store locations. Characteristic of Grocery Outlet's unique style of providing fun and festive ways to heighten shopping experiences for customers, the promotion will continue now until November 1st (November 11th -- Klamath Falls, OR).

To play, Under the Rainbow participants scratch any but only three of the game card's nine rainbow squares; if they match all three they are a winner. There is potentially over $250,000 in total prizes at each store participating, including the Grand Prize of $50,000 cash, and a First Prize of a brand new 2005 Ford Mustang. NO PURCHASE IS NECESSARY TO PLAY!

PARTICIPATING STORE LOCATIONS:

Indio -- California

Vacaville -- California

Victorville -- California

Klamath Falls -- Oregon

Medford -- Oregon

Lewiston -- Idaho

Auburn -- Washington

Federal Way -- Washington

Kent -- Washington

Wenatchee -- Washington

For complete store listings visit: http://www.groceryoutlets.com/.> About Grocery Outlet:

Grocery Outlet specializes in Bargains on brands you trust! (R) Consumers can discover significant savings on a wide variety of brand name products, including fresh produce, frozen and refrigerated foods, dry groceries, beer and wine, health and beauty care, over-the-counter drugs, household products, toys, and gifts. The business currently encompasses 122 stores in 6 Western States and Hawaii. (WA, OR, ID, NV, AZ, CA, HI). www.groceryoutlets.com.