Safeway Launches Hurricane Relief in Stores; Safeway Foundation Gives $100,000 to Red Cross as Company Raises Money in Stores and Sends 10,000 American Red Cross Emergency Preparedness Kits to the Gulf Coast

Business Wire, Sept 2, 2005

PLEASANTON, Calif. -- The devastation of Hurricane Katrina on the Gulf Coast has triggered the largest disaster relief effort in U.S. history. Throughout North America, millions of people are reaching out to the hurricane survivors to offer financial and material support.

Safeway announced today that it has launched a company-wide fundraiser to benefit hurricane survivors. The Safeway Foundation has delivered an initial check for $100,000 to the Red Cross Disaster Relief Fund and will match employee contributions to the relief organization. In addition, the company will donate 10,000 American Red Cross Emergency Preparedness Kits that contain blankets, flashlights, first-aid supplies and other necessities.

Each of the 17,000 check stands at the company's 1,802 stores in the U.S. and Canada also will be used to collect donations for the Red Cross Disaster Relief Fund.

"People in the affected areas of Louisiana, Mississippi and Alabama are in desperate need of clean water, safe shelter and the basic necessities of life. It is crucial that we step in to help provide for their needs," said Larree Renda, Executive Vice President. "Safeway's Tom Thumb and Randalls stores in Texas already are providing food, water and other supplies to evacuee shelters. The need is staggering, but can be met if everyone gets involved."

The company's Texas stores began collecting donations on Tuesday, August 30 with the cooperation of local radio and television stations. Houston is currently housing thousands of evacuees from the afflicted areas, including an estimated 25,000 people taken from the New Orleans Superdome to the Houston Astrodome. Randalls and Tom Thumb stores and local broadcast partners are asking the public to contribute to the "Neighbors in Need" program at Randalls stores and the "Spirit of Texas Hurricane Relief Effort" at Tom Thumb stores.

In early 2005, Safeway conducted a similar fundraising effort to help the survivors of the tsunami disaster in South Asia. That campaign raised $3.5 million.

ABOUT SAFEWAY

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,802 stores in the United States and Canada and had annual sales of $35.8 billion in 2004. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.