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Peapod by Giant to Expand Service to New Areas of Washington, D.C., and Suburbs

Leading Internet grocer Peapod Inc. and Giant Food Inc., a leading supermaket chain in the mid-Atlantic region of the
United States and a wholly owned subsidiary of international food provider Royal Ahold, today announced the expansion of the Peapod by Giant online shopping and delivery service in the Washington, D.C., metropolitan area.

This is the second expansion for Peapod by Giant since the service opened in the region in late 2000. It will add Northeast and Southeast Washington, D.C., and Northeastern Prince George's County, Md.

"As expected, Peapod by Giant's business has grown rapidly in the Washington, D.C., market," said Marc van Gelder, Peapod's president and CEO. "With the recent closure of another online grocer serving the area, the demand for our service has increased even more. We are excited about expanding the Peapod by Giant service to new areas with very strong potential. These new areas were previously served by our competitor and many residents have become accustomed to doing their grocery shopping online. We look forward to serving these customers and also building our business by welcoming new customers."

Northeast Washington, D.C., is the first area slated for service, with deliveries beginning Aug. 7. The Peapod by Giant expansion will roll out in stages through mid-September, with delivery times available in all new areas by Sept. 19.

Peapod by Giant began serving the Washington metropolitan area in November 2000, after Peapod purchased the Gaithersburg, Md., operations of former online grocer Initial service areas included Northwest Washington, D.C., Montgomery County in Maryland and Fairfax, Arlington and Alexandria Counties in Virginia. An expansion in April of this year brought the service to online shoppers in Howard County, Md.

All Peapod by Giant grocery orders will continue to be picked, packed and delivered from the centralized fulfillment center in Gaithersburg. The service offers a wide variety of Giant and national brands, from fresh produce, cheeses, seafood and meats, to a large selection of baby food, pet food and health and beauty products. Peapod's just-in-time stocking process guarantees customers the freshest products available. Peapod's state-of-the-art order fulfillment technology and proprietary transportation routing system helps it achieve accuracy and efficiency in picking, packing and delivering grocery orders.
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