Safeway Offers Special Program to Stretch Tax Stimulus Checks

Safeway Inc. (NYSE: SWY) today announced a program that enables its customers to cash their government economic stimulus checks at Safeway, receive a store discount and still have flexibility to choose how to spend the funds. The offer is good at all Safeway and Safeway-owned stores, including Vons, Pavilions, Randalls, Tom Thumb, Carrs, Dominick's, Genuardi's and Pak 'n Save.

Beginning May 14, just as the stimulus checks arrive in mailboxes, all Safeway and Safeway-owned stores will cash the stimulus checks for free and give Club Card customers a 10 percent discount certificate good on their purchases that day or the following day. The program runs through July 19, 2008.

"We are pleased to offer this no-cost check cashing service and to provide customers with an extra discount to help stretch these funds farther," said Safeway Chairman, President and CEO Steve Burd. "We understand that most people have plans for their checks. Our program provides consumers the freedom to allocate their rebates according to their needs, while enjoying a 10 percent savings if they spend some of it at Safeway."

In addition to the 10% discount certificate, Safeway will be increasing its customer's buying power during the promotional period by featuring Club Card specials on stock-up items throughout the store. Customers will also have the opportunity to purchase Safeway's extensive array of high quality, award-winning private label items that provide great value everyday.

Customers who are interested in this offer should present their stimulus check, government-issued ID and a Safeway Club Card at their local store's Customer Service center from May 14, 2008 through July 19, 2008. The program is limited to one offer per household. Further details of the program will be available in store and on the Safeway website.

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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 1,74 stores in the United States and Canada. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.