Albertson's, Inc. Announces New President and Chief Operating Officer.

Business Editors

BOISE, Idaho--(BUSINESS WIRE)--March 21, 2000

Albertson's, Inc. (NYSE:ABS) Chairman and Chief Executive Officer, Gary Michael, and the Albertson's Board of Directors, have named Peter Lynch, 48, to the position of President and Chief Operating Officer effective immediately. Peter began his retail career in 1967 and has most recently served as Executive Vice President of Operations. The position of President and COO has been vacant since June 1999.

"The new Albertson's will benefit greatly from Peter's dynamic leadership and his passionate commitment to our associates and our customers," said Mr. Michael. "Peter brings an exciting perspective to our business and he will provide our Company with important vision and direction."

Additionally, Carl Pennington, 62, has formally announced his plan to retire in early June after 37 years with Albertson's. Carl is a member of the Office of the Chairman and Executive Vice President of Marketing.

"Carl's many contributions will have a lasting impact on our industry, our Company, and our associates," said Mr. Michael. "I would like to thank Carl for his years of dedication and hard work and, on behalf of Team Albertson's, extend our best wishes for a happy and well-deserved retirement."

As a result of these moves, Mr. Lynch has established the following new operations and marketing/merchandising leadership team:

-- Bob Butler, 51, currently Senior Vice President, Merchandising, has been named Executive Vice President, Operations. Bob will be responsible for the Drug, Intermountain, Northern California and Northwest Regions.

-- Roe Cefalo, 50, currently President of the Southern California Region, has been named Executive Vice President, Operations. Roe will be responsible for the Eastern, Midwest, Southern and Southern California Regions.

-- Craig Herkert, 40, currently President of the Eastern Region, has been named to the position of Executive Vice President, Marketing.

-- Wayne Denningham, 38, currently President of the Intermountain Region, has been named to the position of Executive Vice President, Merchandising.

"This new marketing/merchandising and operations team is an outstanding blend of seasoned leaders," said Mr. Lynch. "Our goal is to further our innovative marketing, leading-edge merchandising and operating excellence. This, combined with the hard working Team Albertson's associates, will continue to provide our customers with the best service, products and information in the industry."

The following new Region Presidents have also been named:

-- Dave Simonson, Executive Vice President of Operations, has been named President, Southern California Region.

-- Carl Jablonski, Senior Vice President of Operations in the Eastern Region, has been named President of the Eastern Region. A new Senior Vice President of Operations for the Eastern Region will be named soon.

-- Shane Sampson, Vice President of the Florida Division, has been named President of the Intermountain Region. Mike Withers, Vice President of the Big Sky Division, has been named to succeed Shane as Vice President of the Florida Division. A replacement for Mike will be named soon.

"Dave, Carl and Shane are three exceptional leaders who will provide our Regions with the important strategic direction necessary to ensure that we continue to grow our business and increase sales," Lynch said. "I am pleased that Dave has agreed to lead the Southern California Region since it is such a critical part of our business and he is the most familiar with the tough competitive challenges we face there."

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 almost 2,500 retail stores in 37 states across the United States.