"Joining the California Climate Action Registry was the next logical step in demonstrating Safeway's continued leadership in protecting the environment," said Safeway Chairman, President and Chief Executive Officer Steve Burd. "We have committed ourselves to a companywide clean energy initiative that is already having a positive impact on our business and the communities in which we operate."

Joining The Registry requires Safeway to follow a stringent program to annually monitor, report and certify its greenhouse gas emissions.

As the only retail grocer to join the Registry, Safeway has made a clear and powerful statement to its customers and shareholders about the importance of the retail sector in driving GHG emission changes and investing in clean energy. Safeway hopes others will make the commitment to join and become part of the solution.

Safeway has implemented several clean energy initiatives to reduce its carbon footprint across California and North America. The company was a strong supporter of AB 32, California's new law to reduce carbon emissions by 25 percent by 2020.

In September 2006 Safeway joined the Chicago Climate Exchange and committed to reduce its carbon footprint from the base year 2000 by 390,000 tons of carbon dioxide. The company also announced the purchase of an additional 174,000 megawatt-hours of wind energy, making it one of the largest corporate purchasers of green wind energy in California and the nation.

Safeway has also initiated an innovative strategy to reduce overall energy consumption through new cost-effective building designs, process improvements and demand side management technologies in its stores.

Specific measures include

+ utilizing new refrigeration system technology in new stores to reduce electricity usage;

+ installing no-heat freezer case doors that reduce electric heating;

+ replacing exterior store neon lighting with LED lighting, helping to significantly reduce electricity usage;

+ the installation of fluorescent lighting and other high-efficiency bulbs that significantly reduces additional electricity in its stores;

+ implementing a comprehensive national recycling program that is recycling nearly 500,000 tons of materials such as cardboard, plastics, compostable materials and other food waste each year.

"By reducing greenhouse gas emissions, Safeway is taking action to reduce the Company's carbon footprint and reduce air pollution," said Joe Pettus, Safeway's Senior Vice President of Fuel and Energy Operations.

"With a combined strategic approach of renewable power, energy efficient building designs and recycling efforts, Safeway continues to be a leader in managing our energy footprint at all levels. These innovative solutions are part of our comprehensive environmental strategy that benefits our customers and the communities we serve."

The Registry, created by the California legislature in 2000, helps companies and organizations throughout the United States track, publicly report and reduce their greenhouse gas emissions. The results are certified by independently-approved third-party auditors that ensure compliance with Registry protocols and standardization across participants and sectors within California. The Registry has been widely recognized as a gold standard for public reporting of greenhouse gases.

"Grocery retailers use a significant amount of electricity and users need to be more energy efficient to fight climate change. Safeway is a leader in energy efficiency. It makes sense that the company also step forward on global warming as the first grocery retailer to join the California Climate Action Registry," said Diane Wittenberg, President of the California Climate Action Registry.

North America. The company operates 1,767 stores in the United States and Canada and has annualized sales of $39.7 billion for the period ended September 9, 2006. The company's common stock in traded on the New York Stock Exchange under the symbol SWY.

The California Climate Action Registry is a non-profit public/private partnership that serves as a voluntary greenhouse gas (GHS) registry to protect, encourage, and promote early actions to reduce GHG emissions. Over 100 major companies, cities, government agencies and NGOs measure and publicly report their GHG emissions through the Registry.

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