CarrsPlus/Safeway Club Card Launch.

Business Editors

ALASKA--(BUSINESS WIRE)--March 28, 2000

Spread Your Wings & Fly into Carrs, Eagle and Alaska Safeway stores

for Alaska Airlines Mileage Plan bonus miles every time you use your

Carrs Plus/Safeway Club card.

Beginning Wednesday, March 29 shoppers of participating Carrs, Eagle and Alaska Safeway (NYSE:SWY) stores can earn Alaska Airlines (NYSE:ALK) Mileage Plan bonus miles every time they use their NEW CarrsPlus/Safeway Club card.

The NEW CarrsPlus/Safeway Club card is being offered at all Carrs, Eagle or Alaska Safeway stores. "While Carrs and Safeway customers have already seen the benefits with the CarrsPlus or Safeway Club Cards, the NEW CarrsPlus/Safeway Club Card is a welcome experience for our customers of Eagle stores", said Cherie Myers, director of public and government affairs for Safeway Inc. "With the exciting promotions and programs planned, like our Alaska Airlines partnership, customers will benefit from thousands of automatic savings that the CarrsPlus/Safeway Club card will provide them."

"The Alaska Airlines-Carrs/Safeway partnership has made earning miles easy and convenient", said Myers. Every time a customer spends $250 in eligible purchases through Dec. 21, 2000 (whether it takes one trip or ten), they will earn 125 bonus miles on their Mileage Plan account. Accumulated dollar amounts for eligible purchases will print on the CarrsPlus/Safeway Club member receipt tape. When the accumulated total reaches $250, the award message will indicate that 125 Mileage Plan bonus miles have been earned. Once customers reach $250 the first time, then customers can start accumulating all over again to earn their next 125 bonus miles. There is no limit on how many bonus miles customers can earn during the promotion period.

Signing up for the CarrsPlus/Safeway Club card is easy and it's free. Application forms are available at all participating Carrs, Eagle or Alaska Safeway stores. To participate in the Alaska Airlines Mileage Plan bonus miles promotion, customers will also need to complete a Mileage Plan Instant Enroll application available with their CarrsPlus/Safeway Club Card application. Once the enrollment process is complete, customers are instantly eligible to begin accruing dollar amounts toward the Alaska Airlines mileage promotion and will also be automatically entered into Carrs, Eagle or Safeway sweepstakes

"Our partnership with Alaska Airlines through our CarrsPlus/Safeway Club card is just another way we continue to enhance the value of shopping at Carrs, Eagle and Alaska Safeway stores", said Myers. "We're proud to serve Alaska and will continue to offer benefits to our customers for their loyalty and patronage of our stores."

The Seattle Division of Safeway Inc. is made up of 205 stores in Washington, Northern Idaho, Montana, Alaska and Milton-Freewater, Oregon. Safeway Inc. is one of the largest food and drug retailers in North America based on sales. The company operates 1,659 stores in the United States and Canada. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

Additional Information Airline Miles:

Excluded items are not eligible toward spending accumulation totals. Accumulations exclude purchases of Alcohol, Tobacco, US Postage Stamps, Lottery Tickets, Carrs Tix, Container deposits, Gift Certificate Purchases, Commuter Passes, Money Orders, that portion of a Pharmacy prescription not paid for by the customer, Carrs Plus/Safeway Club Savings, Carrs, Eagle or Safeway Store Coupons, and Sales Tax.