Safeway Announces Health and Wellness Initiatives at California Summit on Wellness and Obesity; ''Ingredients for Life'' Initiatives Aimed at Helping Shoppers Make Healthier Choices.

SACRAMENTO, Calif. -- Safeway Inc. (NYSE:SWY) today announced several health and wellness initiatives aimed at helping shoppers make healthier and more nutritious choices when shopping for "Ingredients for Life" in its stores. The announcements came as part of a day-long summit hosted by California Governor Arnold Schwarzenegger and First Lady Maria Shriver.

As part of his reform agenda for California, the Governor convened a Summit on Health, Nutrition and Obesity on September 15, 2005 in Sacramento to immediately address California's obesity epidemic. At this first-of-its-kind Action Summit, leaders and experts from business, transportation, education, government, and public health communities met with the Governor to suggest reforms to improve California's health landscape by providing its citizens with new opportunities to eat healthy and engage in regular activity.

Safeway was recognized by the Governor as a member of the Summit Honor Roll, a distinction reserved for a select group of companies that immediately responded to the Governor's call for reform. Honor Roll members are swiftly implementing new and innovative initiatives in response to California's health crisis with leadership, vision and commitment to the health of all Californians, and to making California the healthiest state in America.

"Safeway is honored to be part of California's efforts to provide our shoppers more product choices and give them the tools to make healthier life decisions," said Safeway Executive Vice President Brian Cornell. "Safeway launched 'Ingredients for Life' just a few months ago and the initiatives we have announced today continue to position Safeway as a leader in the area of health, nutrition and wellness."

Safeway Chairman, President and CEO Steve Burd is part of the advisory panel that helped plan the summit. As a California-based company, Safeway has taken an active role in helping lead by example in the area of health and wellness. The following are highlights of Safeway's commitments being announced today:

Nutritional Icon's on Safeway-Branded Products: Safeway will become one of the first major retailers to develop and market its products with specially designed nutritional icons that help consumers make better and more informed choices for their lifestyles. Safeway is working with health experts to develop symbols that will be placed on Safeway-branded food packaging. Safeway is launching this initiative in California with a nationwide phase-in to incorporate appropriate food products with the newly developed healthy eating icons.

Expansion of Safeway "Eating Right" Product Line: Safeway is addressing another goal of the Governor's summit to better inform and educate the consumer who is constantly on the go. Safeway is announcing, as part of the Summit, the expansion of it's ready to eat Eating Right(TM) product line that will provide greater access to healthy food choices to our shoppers. These products will include special labeling and nutritional information to help in the consumer decision making process.

Integration of Natural/Organic Food Products in California Store Aisles: Safeway will launch an initiative, beginning in its California stores, to integrate its natural and organic food choices into every aisle in its stores. This will give consumers the full range of products available and provide them information to make decisions based on their individual or family lifestyle needs. Safeway is also announcing a new organic product line marketed as "O" Organics(TM) in its stores.

Testing Healthier Choices At Check-Out Stands: Safeway is committing to test the integration of more healthier choice products at its California check stands. During the past year, Safeway has integrated healthier drinks and other products at its check stands. In select California markets, the company will test consumer response to providing additional healthier choice products in an effort to provide a wider range of healthy food options to consumers in every facet of our store environment.

Partnership with Dean Ornish: Safeway announced yesterday its partnership with Dean Ornish, MD, as his role as the Chairman of the company's Advisory Council on Health and Nutrition. Dean Ornish is the founder, president, and director of the non-profit Preventive Medicine Research Institute (PMRI) in Sausalito, California. He is Clinical Professor of Medicine at the University of California, San Francisco. For the past 25 years, Dr. Ornish has directed clinical research demonstrating, for the first time, that comprehensive lifestyle changes may begin to reverse even severe coronary heart disease, without drugs or surgery. Safeway will underwrite a chair at the PRMI which will fund critical research and studies to better understand and improve consumer health and nutrition.

Nutrition/Healthier Eating Summits and Forums: Safeway has committed to host a series of informational summits with leading experts on nutrition and to share ideas and formidable ways in which all sectors can improve consumer choices relating to healthier lifestyles. In November, the company will be co-hosting the "Big Task" weekend. This event will bring together leading consumer packaged goods companies along with other health and nutritionally focused organizations to pursue joint opportunities to combat obesity and other health issues. Safeway is also a major sponsor of the Governor and First Lady's Conference on Women and Families to be held in Long Beach in October. This year, Safeway is hosting the Safeway-Vons/Pavilions California Marketplace, where it is teaming up with our vendor partners to present healthy and nutritional products and information to the more than 10,000 participants.

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. Headquartered in California, Safeway is one of the state's largest private employers, operating more than 550 stores under the Safeway, Vons, Pavilions and Pak'n Save banners. The company operates more than 1,800 stores in the United States and Canada and had annual sales of $35.8 billion in 2004. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.