PLEASANTON, Calif.–(BUSINESS WIRE)–March 1, 2006–Safeway Inc.

(NYSE:SWY) announced today that it is launching Shop & Care, a unique

giving program that teams Safeway’s charitable giving power with that

of leading food manufacturers and other vendors.

Under the program, Safeway customers will accumulate donations

when they purchase designated products. At the end of the program,

customers can earmark their Shop & Care dollars for an organization

from a list of broad-based charities. The program will run March 1

through March 30, 2006. The total donation can reach up to $1 million.

“Our customers know that lending a hand to community efforts is a

very important part of who we are,” said Larree Renda, Executive Vice

President, Chief Strategist and Chief Administrative Officer. “By

giving customers the power to direct donations, we help them become

more involved in the donation process and we learn more about what

charitable organizations are important to them.”

When customers purchase participating products using their Safeway

Club Card or the loyalty card of any other Safeway company, they

accumulate a donation of up to 10% of the net purchase price.

Participating products will be clearly marked by store signs and shelf

tags. Other media, including in-store radio broadcasts, will be used

to notify customers of this opportunity.

Shortly after the conclusion of the month-long program, when

customers shop at our stores they will receive a register receipt

showing the dollar amount accumulated and instructions on how to

donate the funds to designated charities in one of four categories:

1. Hunger Relief — such as food banks, soup kitchens or meal

delivery programs.

2. Education and Culture — including after-school programs,

tutoring programs, museums or youth organizations.

3. Health and Human Services — such as health clinics, domestic

violence shelters, or medical/dental programs for low-income

families.

4. Special Needs — including such organizations as the Special

Olympics, independent living programs or employment programs

for the developmentally disabled.

The categories — which correspond with key areas of Safeway’s

existing charitable outreach — take in a wide variety of non-profit

organizations and community-based efforts. The specific charities in

each category will reflect the needs and services in each local

community.

“We understand that grocery shopping is a local experience. People

buy their groceries in the same communities where they live and work.

So when it comes to giving, our customers expect us to make a

difference locally, and we do,” Renda said.

Each year Safeway contributes more than $163 million in food and

funds to local and national non-profits and charities. The company is

a leading contributor to vital efforts such as America’s Second

Harvest, Easter Seals, The Susan G. Komen Breast Cancer Foundation,

the American Cancer Society, Boys & Girls Clubs, Junior Achievement,

the Muscular Dystrophy Association, the Prostate Cancer Foundation,

schools, universities, hospitals and health clinics.

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 1,775 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.

Copyright Business Wire 2006