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ADDING MULTIMEDIA Safeway CEO Calls for Renewed National Discussion on Health Care Reform

Posted on: Wednesday, 13 December 2006, 15:00 CST

Safeway Inc. (NYSE:SWY) Chairman, President and CEO Steve Burd today joined Oregon U.S. Senator Ron Wyden (D-OR) and leaders from business, labor and health care in calling for a new approach to reforming health care. At a Capitol Hill press conference where Senator Wyden unveiled health care legislation aimed at providing affordable, high quality, private health coverage for all individuals, Mr. Burd underscored the importance of renewing the national discussion on health care reform and crafting market-based, bipartisan solutions to the nation's health care crisis.

"Senator Wyden, with his commitment and passion for health care reform, has introduced an innovative proposal that lays a foundation to begin a serious discussion on health care reform in this country," said Burd. "Our nation is facing a crisis that requires immediate attention. Working together, business, labor, government, consumer groups and health care providers can collectively solve this problem."

Left unchecked, Mr. Burd noted that health care costs for companies are projected to equal net profits by 2008. He praised many of the key elements in the Wyden plan that could reduce overall health care costs, including market-based solutions, an individual mandate, incentives to encourage healthy behavior, an emphasis on preventive care, and shared responsibility among individuals, employers, government and health care providers. Mr. Burd said he wants to work together and strengthen elements of the plan to ensure appropriate levels of coverage and a fair, equitable transition for consumers and employers.

"The problems facing the current health care system can be solved, but it will take innovative leadership," said Burd. "Without some dramatic change, not only will the uninsured population continue to grow but the American worker will become less competitive. We have a unique opportunity to solve this problem and instill market mechanisms that reduce costs, increase affordability and improve health by assisting individuals in making better health care decisions."

During the past two years Safeway has moved to a consumer-driven plan for its non-union workforce that aligns personal incentives with healthy choices. In 2007, more than 70% of eligible non-union employees will be enrolled in this plan, which pays 100% of preventive care and provides incentives to improve health care decisions. The total health care costs for these employees have decreased 30% over the two year period versus the prior increasing trend. The majority of these savings have been passed on directly to those employees.

Mr. Burd has been a leading voice for market-based reforms to our nation's health care system for more than a decade. In September, he addressed the U.S. Chamber Foundation, challenging business, labor and the health care industry to work together to forge solutions to the nation's health care crisis. In August, Mr. Burd spoke at California Governor Arnold Schwarzenegger's Health Care Summit in Los Angeles where he discussed the need for reforms that would include preventive care and behaviorism. Mr. Burd has also addressed the Milken Institute Global Conference for the past two years on the need for health care reform and more individual control in health care decision-making.

ABOUT SAFEWAY

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 1,767 stores in the United States and Canada and had annual sales of $38.4 billion in 2005. Safeway supports a broad range of charitable and community programs and last year donated more than $150 million to important causes, such as cancer research, education, food banks and programs focused on assisting people with disabilities. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

Source: Business Wire

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