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Safeway Stockholders Show Strong Support

PLEASANTON, Calif. -- Stockholders of Safeway Inc. voted in strong affirmation of the retailer's current management and strategic direction, according to preliminary results of its stockholder's vote, held during the company’s annual meeting.

The stockholders soundly rejected a series of eight shareholder resolutions, some of which, if passed, would have brought sweeping changes. Instead, consistent with the board’s recommendations, all eight proposals were defeated by the following approximate vote percentages.

According to Safeway, the voting played out thusly:

percent of shares voted against

Cumulative voting
73 percent

Sale of the company
98 percent

Independent director as chairman of the board
80 percent

Issue sustainability report
83 percent

Director compensation
97 percent

Director election by majority vote
54 percent

Independent board committees
89 percent

Create office of the board of directors
96 percent

The shareholders also re-elected all nine directors

"We are encouraged by this vote of shareholder confidence and support," said Steve Burd, chairman, president, and c.e.o. "We have taken significant steps to strengthen our corporate governance over the past few years and will continue to proactively make changes that we believe can positively impact shareholder value."

In other news, Safeway's board of directors declared a quarterly cash dividend of 5 cents per share, payable on July 7, 2005 to shareholders of record as of June 16, 2005 -- the first cash dividend paid to shareholders since the company's IPO in 1990.

"The board's decision to initiate a quarterly dividend while we continue to fund our extensive store remodel program and reduce debt is a sign of its confidence in our strategy and anticipated strong cash flow from operations," said Burd.
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