Albertson's, Inc., Adopts Corporate Governance Guidelines; Downsizes Board.

Business Editors

BOISE, Idaho--(BUSINESS WIRE)--March 16, 2001

Albertson's, Inc. (NYSE:ABS), today announced that the Company's Board of Directors has adopted written Corporate Governance Guidelines. The Guidelines are intended both to formalize practices previously implemented by the Board and to improve the Board's oversight function.

"Our Board's actions represent another step toward establishing Albertson's as not only a leader in the retail food and drug business, but also as a world class corporation," said Gary Michael, chairman of the board and chief executive officer.

The Guidelines provide that a substantial majority of the directors should continue to be unaffiliated with Albertson's and that a "lead independent director" will coordinate the independent directors' activities. The Guidelines restructure the Board committees and enhance the function of the Independent Directors' Committee. The Guidelines also formalize the Company's past practice of conducting an annual Board review of the Chief Executive Officer's performance and the Company's succession planning process.

The Albertson's Corporate Governance Guidelines reflect the Board's belief that it should generally have 10 to 14 directors. A gradual reduction in Board size would have been consistent with the new Guidelines, but to accelerate this restructuring, five directors, Fernando R. Gumucio, Charles D. Lein, Arthur K. Smith, Steven D. Symms and Thomas J. Wilford, have volunteered to resign. These resignations will be effective June 14 at the conclusion of Albertson's 2001 Annual Meeting of Stockholders.

The Albertson's Board has determined that because of the experience of these Directors and their familiarity with the Company's business, it would be extremely useful to retain their services as special advisors to the Board, and these directors have agreed to serve in that capacity for a two year period following the 2001 Annual Meeting.

"The Guidelines approved by the Board will be helpful as Albertson's moves forward as one fully integrated company," said Paul Corddry, Albertson's corporate governance committee chair.

The Corporate Governance Guidelines have been posted on the Company's website, at www.albertsons.com. The Guidelines can also be obtained from the Company's Corporate Secretary's office upon request.

Albertson's, Inc., is one of the largest retail food and drug chains in the United States. Based in Boise, Idaho, the Company currently operates 2,533 retail stores in 36 states across the United States.