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Safeway Announces 2002 Capital Expenditure Plans

PLEASANTON, Calif. - Safeway Inc. will hold a conference for analysts and institutional investors today to review its performance in the last year and its prospects for continued growth.

The company is targeting five-year annual earnings per share growth of 13% - 15%, after changes in accounting for goodwill that are to become effective on January 1, 2002. This is based on targeted annual same store sales growth of 3% - 4%, square footage growth of 4% - 5%, and continued operating margin improvement. Without the estimated goodwill adjustment, the targeted earnings per share growth would be 14 - 16%.

In addition, the company is providing guidance for earnings per share for the year 2002, of $3.20, after changes in accounting for goodwill that are mentioned above. The goodwill adjustment is expected to add $0.27 to earnings per share in 2002.

The company is also announcing its capital spending plans for the year 2002. It plans to spend approximately $2.1 billion, plans to open 80 - 85 new stores, complete 250 remodels and to have square footage growth of approximately 4.5% next year. Steve Burd, Chairman, President and CEO said, "Safeway plans to put this capital to work at strong return levels."

Safeway Inc. currently operates 1,759 stores in the United States and Canada.
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