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Press release from Business Wire

Safeway Dedicates $4 million to Help School Kids Stay Healthy

<p class=' bwtextaligncenter'> <b>Company Asks Schools to Allocate a Portion of Their Safeway eScrip Education Donations to Fitness and Nutrition Programs</b> </p>

Thursday, August 19, 2010

Safeway Dedicates $4 million to Help School Kids Stay Healthy12:00 EDT Thursday, August 19, 2010 PLEASANTON, Calif. (Business Wire) -- Safeway Inc. (NYSE:SWY) announced today an important change to its eScrip fundraising program by asking schools and groups to allocate 20 percent of the more than $20 million in annual Safeway donations to fitness and nutrition activities. Safeway wants to do what it can to help children stay active and healthy, and hopes this commitment will help build stronger, healthier communities. “With fitness and nutrition programs being reduced or even eliminated in school districts across the country, Safeway recognizes the critical importance of helping to find and fund solutions,” said Larree Renda, Safeway Executive Vice President and President of Safeway Health. “The need for businesses to partner with their local schools is even more imperative today as our nation deals with the epidemic of childhood obesity and how the problem impacts the daily lives of students.” Safeway's successful eScrip program allows customers to earn money for the school of their choice just by shopping with their Safeway Club Card. Beginning in August, just in time for the 2010-11 school year, Safeway is encouraging its school partners to dedicate 20 percent of their Safeway donations to programs that focus on physical activity and good nutrition. Schools can allocate their funds to a broad range of programs and expenditures, such as fitness activities, sports equipment, nutrition or health education, and healthy food options on the school lunch menu. “Our goals are to assist schools in bringing fitness and nutrition to the forefront, reverse the trend of childhood obesity and ensure that children have the important building blocks of good health — exercise and nutritious food,” Ms. Renda added. In addition to the fitness and nutrition change to the eScrip program, Safeway is offering an even greater incentive for school groups to participate and earn donations. The top 5 schools in each Safeway eScrip market (40 total) that report monthly and dedicate the highest percentage of their funds to fitness and nutrition programs will be eligible for a $1,000 bonus. The $40,000 in bonus checks will be handed out in July 2011. For official rules, visit www.eScrip.com. Safeway's support of school wellness programs and involvement in combating childhood obesity is a natural extension of the company's very public and respected dedication to finding solutions for the nation's health care system. For businesses, the company advocates financial incentives for workers to adopt healthy behaviors that not only decrease costs of health insurance, but also create a healthier workforce. For customers, the company has created an array of tools, foods and options to help shoppers make the best, most informed food decisions to fit their specific dietary and health needs. Safeway developed FoodFlex®, an innovative online tool that provides personalized nutrition information and alternative food choices to meet specific health and nutrition goals. In addition, Safeway created O Organics™, the best-selling line of USDA-certified organic food, and Eating Right™, a celebrated line of better-for-you products that lists the product's important health attributes on the front of the package. Safeway's commitment to its communities goes beyond the eScrip program with its more than $220 million donated to schools since the program began in 1999. Safeway also contributes to a broad range of charitable and community programs, and in 2009 donated more than $253 million to hunger relief, health and human services and programs focused on assisting people with disabilities. The company is also one of the largest corporate supporters of cancer-related causes, having raised more than $144 million for breast and prostate cancer research and treatment since 2001. About Safeway www.Safeway.com Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,712 stores in the United States and western Canada and had annual sales of $40.8 billion in 2009. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.