Court Approves Consent Decree for Safeway Inc./Carr-Gottstein Foods Co. Merger.

PLEASANTON, Calif.--(BUSINESS WIRE)--April 13, 1999--

Safeway Inc. (NYSE:SWY) and Carr-Gottstein Foods Co. announced today that an Alaska court approved the February 9th Consent Decree, negotiated with the Alaska Attorney General, governing Safeway's proposed acquisition of Carr-Gottstein Foods Co.

Under the terms of the Consent Decree, Safeway is required, among other things, to sell seven Alaska stores of the combined company to an approved buyer or buyers after Safeway completes its acquisition of Carr-Gottstein.

Consummation of the merger is subject to customary closing conditions, including receipt of required governmental approvals and third party consents. Safeway and Carr-Gottstein expect that the FTC will terminate the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and that the merger will be closed promptly thereafter.

Carr-Gottstein Foods Co. is Alaska's largest food and drug retailer, operating 49 stores in Anchorage, Fairbanks, Juneau, Ketchikan, the Kenai Peninsula and other Alaska communities, as well as the state's largest food warehouse and distribution operation, and Alaska's largest freight company.

Safeway Inc. is one of the largest food and drug retailers in North America based on sales. The company operates 1,497 stores in the United States and Canada. The company's stock is traded on the New York stock Exchange under the symbol SWY.