Catalina Marketing Installs New Color Printers across Safeway Chain

Business Wire, August 30, 2006

ST. PETERSBURG, Fla. -- Color is changing everything for Catalina Marketing Corporation (NYSE: POS), the global leader in behavior-based marketing, as evidenced by the installation of thousands of its new color printers across the entire Safeway grocery store chain over the past several months.

Safeway, one of the largest food and drug retailers in North America, piloted Catalina's new Catalina Connections(TM) color printers last year and was also one of Catalina's first retail partners to commit to installing the printers across its entire chain. The Safeway installation, which includes more than 1,500 stores, began in June and will be completed in early September.

"Safeway was instrumental in helping us pilot and launch the official color printer installation process. They are a long-standing Catalina retail partner and have always understood the value Catalina's targeted marketing provides to their consumers," said Ed Kuehnle, president of Catalina Marketing Services. "The full-graphics, color communications are creating new opportunities for our retail and our manufacturer partners, allowing them to more effectively promote and enhance their stores' and their brands' equity, and ultimately having lasting consumer impact."

Commenting on the successful installations, Michael Minasi, Senior Vice President, Marketing, Safeway said, "We see the new Catalina Connections printers as an important enhancement of Catalina's product. It represents an exciting new communications opportunity for Safeway. The addition of color will allow us to use the printers in an entirely new way."

The Safeway installation marks the official launch of Catalina's initiative that will put approximately 145,000 new printers in grocery stores throughout the U.S. by the end of 2007. Earlier this year, Catalina announced the company's transformation from black and white thermal point-of-sale printers, to new full-color graphic ink jet printers. The technology for the new printers was designed by Epson and successfully piloted in two major retail grocery chains: Safeway and Sweetbay Supermarket (owned by Delhaize Group).

Catalina officially announced the company's $100 million investment in its color technology initiative in January, 2006. By the end of 2007, a majority of the domestic Catalina Marketing Network(R) will be installed with the new color printers.

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 1,772 stores in the United States and Canada and had annual sales of $38.4 billion in 2005. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

About Catalina Marketing Corporation

Based in St. Petersburg, Fla., Catalina Marketing Corporation (www.catalinamarketing.com) was founded over 20 years ago based on the premise that targeting communications based on actual purchase behavior would generate more effective consumer response. Today, Catalina Marketing combines unparalleled insight into consumer behavior with dynamic consumer access. This combination of insight and access provides marketers with the ability to execute behavior-based marketing programs, ensuring that the right consumer receives the right message at exactly the right time. Catalina Marketing offers an array of behavior-based promotional messaging, loyalty programs and direct-to-patient information. Personally identifiable data that may be collected from the company's targeted marketing programs, as well as its research programs, are never sold or provided to any outside party without the express permission of the consumer.

Certain statements in the preceding paragraphs are forward-looking, and actual results may differ materially. Statements not based on historic facts involve risks and uncertainties, including, but not limited to, potential complications, hardware and software issues and delays related to the schedule, installation and operation of color printers, the effectiveness of color printers to increase sales and redemption rates or provide a more effective advertising medium, the changing market for promotional activities, especially as it relates to policies and programs of packaged goods and pharmaceutical manufacturers and retailers, government and regulatory statutes, rules, regulations and policies, the effect of economic and competitive conditions and seasonal variations, actual promotional activities and programs with the company's customers, the pace of installation of the company's store network including as it relates to the installation of color printers in existing and future retail channels, the acceptance by the company's manufacturer clients and retailers of color printers and related new and additional terms and conditions, the success of new services and businesses and the pace of their implementation, the company's ability to maintain favorable client and retailer relationships, and the outcome and impact of the pending shareholder class action and derivative lawsuits.