Safeway Announces Purchase of Boundary Trading Co., Bonners Ferry, Idaho

Safeway Officials expect to create 20-25 construction jobs during remodel

March 2, 2010

Safeway Inc. announced today the acquisition of Boundary Trading Co., located at 6519 Main St., Bonners Ferry, Idaho. Boundary Trading Co. will remain open under normal operating hours through April 7th. After a short closure to convert operations, the store will re-open under Safeway's name and a major remodel will commence. Safeway looks forward to many of the employees from Boundary Trading Co. becoming members of the Safeway team.

Safeway will conduct a multi-million dollar remodel project to transform the current Boundary Trading Co. into a Safeway that will create approximately 20-25 jobs over the course of the 12-week construction schedule. A grand opening ceremony for the remodeled store is planned for July 2010.

The remodeled Safeway store will include several dramatic improvements to the existing facility. The most noticeable will be to the exterior of the building, where a new, second entrance will be constructed that will increase the usability and convenience of the parking lot for customers. This new main entrance will open into an expanded and relocated floral department that will feature a service kiosk, refrigerated flower cases and a wide variety of floral arrangements, balloons and gift baskets.

Beyond the floral department will be an expanded and relocated produce department, which will be highlighted by an extensive organic produce selection and all new display cases. To accommodate the floral and produce departments, the existing frozen food department, beer and wine departments and the dairy department will all be relocated and upgraded. The meat and seafood departments will feature expanded offerings, including full-service cases featuring fresh cuts of meat and fresh seafood.

The offerings in the deli department will be expanded to include a China Express kitchen, with fresh Chinese food prepared on-site, a self-service Sushi case, a full-service sandwich bar featuring made-to-order sandwiches, a refrigerated gourmet cheese table and a soup cart with hot, fresh soups prepared daily. The bakery department will offer ice-cream cakes and an expanded offering of freshly made breads, cakes and pastries.

The Pharmacy department will be expanded offering a greater selection of health and beauty care products. The existing drive-up Pharmacy window will remain in its current location, allowing customers the convenience of picking up their prescriptions without getting out of their cars.

Safeway will close their existing store located at 216 First Street when their new store celebrates their grand opening in July 2010. An independent grocer has already been secured by Safeway to operate in their existing facility. The independent grocer will likely open for business in August after they have had a chance ot convert the space for their own use.

ABOUT SAFEWAY (http://www.safeway.com)
Safeway Inc., is a Fortune 50 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,730 stores in the United States and western Canada and had annual sales of $44.1 billion in 2008. The company's common stock is traded on the New York Stock Exchange under the symbol SWY. Safeway supports a broad range of charitable and community programs and in 2008 donated more than $248 million to important causes, such as cancer research, education and hunger relief.