Safeway's California and U.S. Truck Fleet Goes

Safeway Inc. (NYSE:SWY), one of the nation's leading retailers embracing environmentally friendly initiatives throughout its business
operations, announced that it has converted its entire California and U.S. truck fleet to cleaner-burning biodiesel fuel.

    The biodiesel initiative makes Safeway one of the first major
retailers in the United States to convert its entire fleet of more
than 1,000 trucks to cleaner-burning biodiesel fuel. The decision by
Safeway will help reduce carbon dioxide emissions by 75 million pounds
annually, the equivalent of taking nearly 7,500 passenger vehicles off
the road each year.

    "Safeway is proud to lead by example to help protect the
environment," said Chairman, President and CEO Steve Burd. "Using
biodiesel to power our transportation fleet will prevent millions of
pounds of carbon emissions from being released into the environment.
Our biodiesel program is just one of many initiatives underway that
will make a positive impact on the environment."

    In Northern California, Lt. Governor John Garamendi will join Mr.
Burd for an unveiling of the company's newest biodiesel fueled big rig
at a 3 p.m. ceremony on Friday at the company's Dublin, California
store. The store is one of the company's green store, and is powered
by solar energy. The on-site Safeway fuel center is powered by wind
energy.

    "Safeway's environmental leadership is a shining example of how
businesses can adapt and become a major player in the fight against
global warming," said Lt. Governor Garamendi. Thinking green can no
longer be a choice in the business world when looking toward the
future. Smart businesses are looking over the horizon, and understand
that the risks and opportunity associated with this critical issue
must be part of their overall plan to grow and to be successful in the
future."

    Safeway this week is making the announcement with environmental
and community leaders in major cities throughout the country. In
Colorado Governor Bill Ritter and U.S. Senator Ken Salazar helped fuel
the first biodiesel truck at a Safeway distribution center. In
Washington, D.C. members of Congress, the U.S. Environmental
Protection Agency representatives joined Safeway officials for a
similar announcement at a local Safeway store. Mayor Richard Daley
joined executives from Safeway's Dominick's division for an event in
Chicago. In Pasadena, Mayor Bill Bogaard and Vons officials unveiled a
biodiesel powered truck in front of city hall. In Portland, Oregon a
range State Legislators joined Safeway for its local launch. To help
educate the public about environmental awareness, every Safeway truck
will have special decals indicating the vehicle is operated with
cleaner-burning biodiesel.

    Safeway's biodiesel program is just part of Safeway's extensive
Greenhouse Gas Reduction Initiative and the company's overall effort
to manage its carbon footprint, address climate change and reduce air
pollution. The company has been recognized throughout the country for
its dedication to using solar power, wind power, alternative fuels and
construction strategies in conjunction with employee education and
consumer outreach to reduce carbon emissions in the communities
Safeway serves. In September 2007 the company was awarded the
California Governor's Environmental and Economic Leadership Award in
the area of climate change.

    In 2006 Safeway joined the Chicago Climate Exchange (CCX(R)), the
world's first and North America's only voluntary, legally binding
greenhouse gas emissions reduction, registry and trading program. The
CCX membership commits Safeway to reduce its carbon footprint from the
base year 2000 by 390,000 tons of carbon dioxide. The company also
joined the California Climate Action Registry, California's only
official registry for greenhouse gas emissions reduction projects.

    In addition, the company is participating in the U.S.
Environmental Protection Agency's SmartWay Transportation Partnership,
which commits Safeway to establishing a baseline fuel efficiency of
its fleet and implementing a plan to decrease carbon emissions. Those
efficiencies, which include purchasing trailers with large capacity,
have saved more than 6.5 million gallons of diesel fuel and decreased
carbon emissions by 73,000 tons annually. Safeway also is part of the
EPA's Grow & Go Partners, which promotes the benefits of renewable
fuels.

    Other Safeway sustainability initiatives include:

    --  Being one of the largest retail purchasers of renewable wind
        energy in the U.S, purchasing 87,000 megawatts annually,
        enough to power its 300 fuel stations and over 50 stores.

    --  Launching a solar power program to convert two dozen
        California stores to solar energy, which will help remove 10.4
        million pounds of carbon dioxide from the air, the equivalent
        of taking 1,000 cars off the road annually.

    --  Implementing unique energy-saving strategies in stores by
        installing new energy-efficient refrigeration technology and
        freezer systems and utilizing LED lighting to significantly
        reduce electricity usage.

    --  Operating an extensive recycling program in which nearly
        500,000 tons of materials are recycled each year, including
        cardboard, plastics and compostable materials. This is the
        equivalent of filling six football fields stacked 35 feet
        high. The company also offers reusable canvas bags to
        customers and has plastic bag recycling programs at many
        stores.

    "Safeway cares about the environment and this investment in
utilizing cleaner-burning technologies to operate our trucking fleet
reflects our strong commitment to protecting the environment," said
Senior Vice President for Energy Operations Joe Pettus. "Our customers
care about these types of sustainability issues, and we are proud to
be a leader in environmental best practices."