Safeway Announces Management Changes

Business Wire, April 3, 2008

PLEASANTON, Calif. -- Safeway Inc. announced that Des Hague, President of Perishables, has decided to leave Safeway to pursue other business opportunities. He will be succeeded by Kelly Griffith, most recently President of the company's Portland Division. "We are grateful for Des' contributions and wish him well in his future business endeavors," said Steve Burd, Safeway Chairman, President and Chief Executive Officer.

Mr. Griffith joined Safeway 28 years ago in the Seattle Division. After working his way through a range of retail store management assignments, he was promoted to Safeway's corporate retail operations team in 1999 and was elected a vice president the following year. He was promoted to Vice President, Retail Operations in the Seattle Division in 2001, then he returned to the corporate office as Senior Vice President, Produce and Floral, in 2004. He has been Portland Division President since 2005.

"Kelly's demonstrated ability to deliver exceptional results will serve him well in his new corporate assignment," said Mr. Burd. "His previous experience on both the retail and perishable marketing side of our business make him a perfect fit for the job."

The company also announced the following additional retail management changes:

Steve Frisby, currently President of Safeway's Texas Division, will replace Kelly Griffith as Portland Division President. Mr. Frisby started with Safeway in 1972 as a clerk in the company's former Little Rock Division. He later progressed through the retail ranks in three of the company's other operating divisions. After a brief corporate retail operations assignment, Mr. Frisby was promoted to Safeway's Northern California Division as Vice President, Retail Operations in 1993 and to the company's Portland Division in the same capacity three years later. He became Texas Division President the following year. "We are pleased to have Steve back in Portland," said Mr. Burd. "His intimate knowledge of that market will serve the company well."

Tom Schwilke, currently Group Vice President, Produce and Floral, will be promoted to Division President in Texas. Mr. Schwilke began his career in 1982 in the company's Seattle Division, where he advanced through a range of retail management positions. In 1998 he was promoted to district manager in the Northern California Division, then joined the corporate team as Director, Corporate Retail Operation, and was later elected a vice president. After serving as a Vice President, Retail Operations at Vons from 2001 to 2007, he returned to Pleasanton as Group Vice President, Produce and Floral. "Tom's energy and proven ability to get things done on both the marketing and retail side of the business make him well suited to his new duties in Texas," said Mr. Burd.

Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,743 stores in the United States and Canada. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.