October 1, 2008

Safeway Launches 8th Annual Breast Cancer Fundraising Initiative

Safeway Inc. (NYSE:SWY), one of North America's largest corporate supporters of cancer research and treatment, today launched a month-long campaign to further breast cancer research, raise awareness and help breast cancer patients find the best options available to address their specific needs. The company initiative will highlight the need for women to have access to new and innovative treatments.

"Breast cancer research and awareness fundraising is an important October tradition at Safeway. The disease is a major health threat to women, and we are committed to funding programs at top cancer centers focused on leading-edge research," said Larree Renda, Safeway Executive Vice President and Chair of The Safeway Foundation. "With breast cancer as the largest women's health issue of our time, we are determined to make a difference."

Safeway has raised nearly $41 million for breast cancer research since 2001. During October, National Breast Cancer Awareness Month, the company will add significantly to that number through a range of additional fundraising programs at its local stores. For example, the stores will sell reusable grocery bags that sport the pink ribbon logo and the words "Support the Cause." 100% of the proceeds from each $1.99 bag sold will go to breast cancer research. Safeway and vendor partners will contribute to the breast cancer campaign when customers purchase specially marked products in stores. In addition, Safeway will be a major regional sponsor of 10 Susan G. Komen Breast Cancer Foundation "Race for the Cure" events across the U.S. as well as other breast cancer awareness community events.

Overall, the funds raised at Safeway will be donated to major cancer research centers in the company's operating regions including:

 Arizona: Translational Genomics Research Institute Northern California: The Carol Franc Buck Breast Cancer Center at the University of California San Francisco Southern California: The Revlon Women's Cancer Research Program at UCLA Canada: The Canadian Breast Cancer Foundation Colorado: The Anschutz Breast Cancer Unit at the University of Colorado Illinois: The Lurie Breast Cancer Unit at Northwestern University Maryland: The Kimmel Cancer Center at Johns Hopkins University Oregon: Providence Hospital Comprehensive Cancer Center Pennsylvania: The Linda Creed Breast Cancer Center and the Fox Chase Cancer Research Center Texas: The Nellie B. Connally Breast Cancer Center at M.D. Anderson Cancer Center Washington State: The Fred Hutchinson Cancer Center 

This year Safeway launched a new program of outreach to breast cancer patients. Recently a new online service, BreastCancerTrials.org, began matching patients with clinical trials of new treatments and methods of improving patients' quality of life. Using part of a $2 million grant from Safeway and The Safeway Foundation, the University of California at San Francisco's Carol Franc Buck Breast Care Center created and manages BreastCancerTrials.org, which helps patients find clinical trials that address the specific stage and complexities of their disease. The site allows thousands of women from across the country to quickly and confidentially locate and learn about clinical trials underway anywhere in the United States. The site screens a patient's self-reported information against clinical trial eligibility requirements to provide users with a personalized list of trials for which they may be eligible to participate.

Safeway is a corporate leader in supporting important causes in the communities where it operates stores. In 2007, the company sponsored four major fundraising drives that raised nearly $40 million for charitable causes. This year to date, Safeway customers and employees have donated more than $13.2 million for prostate cancer research, $9 million for Easter Seals and Special Olympics and $10 million for the Muscular Dystrophy Association.

ABOUT SAFEWAY www.Safeway.com

Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,743 stores in the United States and western Canada and had annual sales of $42.3 billion in 2007. Safeway supports a broad range of charitable and community programs and in 2007 donated more than $172 million to important causes, such as cancer research, education, food banks and programs focused on assisting people with disabilities. Safeway is also one of the largest retail purchasers of wind energy, using 57 million kilowatt hours of wind energy, enough to power all 303 Safeway retail fuel stations, all stores in San Francisco, California and Boulder, Colorado, as well as all of the company headquarters and all corporate offices in Northern California. Safeway was the first major retailer to join the Chicago Climate Exchange, the world's first and North America's only legally binding GHG allowance trading system, and the California Climate Action Registry, which commits the company to reduce its carbon footprint by 6 percent from year 2000 levels.

Safeway has implemented unique energy-saving strategies throughout its manufacturing, distribution and grocery stores by installing new energy-efficient technologies, introducing new maintenance procedures and implementing new sustainable design and construction practices. Additional information about the company's environmental programs can be found at www.Safeway.com. Click on "About Us" and "Going Green."

Safeway's common stock is traded on the New York Stock Exchange under the symbol SWY.