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Supervalu to Sell Stake in WinCo Foods

MINNEAPOLIS - Supervalu, Inc. here said yesterday it had signed an agreement to sell its minority ownership interest in WinCo Foods, Inc., a privately held regional grocery chain that operates stores in California, Idaho, Oregon, Nevada, and Washington. The closing, although subject to contingencies, is expected to occur today.

Supervalu expects to receive after-tax proceeds of approximately $150 million on the sale and will use the proceeds to reduce debt. The net impact of these items is estimated to increase Supervalu's fiscal 2005 net earnings by approximately 40 cents per share. In fiscal 2005 Supervalu will report a one-time after-tax gain on the sale of approximately 50 cents per share. Fiscal 2005 net earnings will also include a reduction of approximately 10 cents per share, reflecting the elimination of WinCo's noncash equity earnings, partially offset by interest savings from reduced debt.

Supervalu will detail these transactions, as well as update its outlook for fiscal 2005, when it announces the results for its fourth quarter and full-year fiscal 2004 later this month.
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