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SAFEWAY OPENS ITS HIGHLY ANTICIPATED REPLACEMENT STORE IN GIG HARBOR

BELLEVUE, WA — December 6, 2011 — On December 10, 2011, at 8:00am, Safeway Inc. will open its doors to its new 63,700 square foot state of the art Safeway Lifestyle store in Gig Harbor, Washington. As part of the opening day festivities, Safeway will be offering great sale prices and samples of its products throughout the store. Safeway will also celebrate the season with Santa photos, a giant gingerbread house display created by classes from Artondale Elementary and Harbor Heights Elementary, as well as a Christmas tree lighting ceremony with performances by choirs from Gig Harbor Academy and Gig Harbor High School.

The Gig Harbor replacement store is in a class of its own. The new store will boast many specialty departments including a large service meat and seafood department, fresh bakery with a majestic hearth oven and warm breads sliced to order, island deli with service sandwiches and sushi, expanded produce department with a substantial organics selection, pharmacy with private immunization and consultation rooms, as well as a Starbucks with a generous indoor and outdoor seating area, including a two-sided fireplace and free wi-fi to create a comfortable place to take a break from shopping and enjoy a cup of coffee or meal from the deli.

The new store is the first phase of a complete shopping center redevelopment by Safeway’s subsidiary company, Property Development Centers. The Safeway store, adjacent retail shop space and one retail building next to the Bank of America will be completed in the first phase. The second phase will include a Kohl’s department store, 38,881 square feet of additional retail space and three retail pads for future development. Kohl’s anticipates opening in the fall of 2012, and any tenants besides Kohl’s are yet to be finalized.

On opening day, customers will be treated with a spectacular 12-hour sale, food samples throughout the store, as well as photos with Santa by the fireplace from 12:00pm to 6:00pm (in exchange for a donation of a food product to FISH Food Bank), a display of giant gingerbread houses created by Artondale and Harbor Heights Elementary classes, and a Christmas tree lighting ceremony at 5:00 pm with performances by choirs from Gig Harbor Academy and Gig Harbor High School.

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 1,694 stores in the United States and western Canada and had annual sales of $41.1 billion in 2010. The company’s common stock is traded on the New York Stock Exchange under the symbol SWY.

About The Safeway Foundation

The Safeway Foundation supports causes that impact our customers’ lives. Our stores provide the opportunity to mobilize funding and create awareness in our neighborhoods through our employees’ passion, partnerships with our vendors, and the generous contributions by our customers. We focus on giving locally in the areas of health and human services, hunger relief, education and helping people living with disabilities.

Contact: Sara Osborne, Manager of Public/Government Affairs (425) 503-0362

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