Safeway Fuel Stations Throughout Washington, Alaska, Montana & Idaho to Be Powered by Renewable Energy

BELLEVUE, Wash.--Sept. 15, 2005--Safeway Inc. announced today that it will purchase 100% renewable energy to power the company's 270 fuel stations in the United States, with the majority located in the Seattle Division region encompassing Washington, Alaska, Montana and Idaho. Currently, the Seattle Division operates 71 fuel stations and will increase their locations to 76 by year end. Through a partnership with the U.S. Environmental Protection Agency (EPA), Safeway becomes one of the largest buyers of green energy in the United States and an EPA "Green Power Partner." EPA's Green Power Partnership is a voluntary partnership between the EPA and organizations that pledge to replace a portion of their electricity consumption with renewable energy.

"Safeway has built a longstanding reputation for taking a leadership role in protecting our environment," said Cherie Myers, Director of Public & Government Affairs. "By powering our fuel stations with wind energy we are following suit with our commitment to give back to our communities by making them a better and safer place to live."

Under the partnership, Safeway has agreed to purchase 78 million kilowatt hours in the form of wind energy. By doing so, the company becomes one of the nation's largest buyers of green energy in the U.S. Safeway is now the only retailer to purchase enough renewable energy to power 100% of its U.S. fuel stations.

"The EPA applauds Safeway's fuel stations for being among the largest commercial purchasers of green power in the United States," said Blaine Collison, program director of the U.S. Environmental Protection Agency's Green Power Partnership. "Safeway is leading by example and setting a standard for environmental partnership."

ENVIRONMENTAL IMPACT

The EPA, using average avoided carbon dioxide emissions nationally, estimates that Safeway's purchase is equivalent to avoiding more than 85 million pounds of carbon dioxide, comparable to planting more than 10,500 acres of trees. Each store reduces carbon dioxide emissions by an equivalent of planting 200 acres of trees. The emissions reduction per fuel stations is equivalent to planting 24 acres of trees.

HOW IT WORKS

EPA's Green Power Partnership, a voluntary partnership between the EPA and organizations that pledge to replace a portion of their electricity consumption with renewable energy. Renewable energy, including wind energy, is electricity generated from sources that are more environmentally friendly than traditional fossil fuels. Renewable energy benefits the environment by displacing non-renewable power sources like nuclear, coal and other fossil fuels that emit carbon dioxide (CO2), a greenhouse gas linked to global warming. The wind energy purchased by Safeway will come solely from newly constructed wind turbine generators, encouraging a cleaner, greener environment.

As a result of this investment, wind power will be supplied to the power grid, replacing electricity generated from less environmentally friendly sources. Electricity from a wind turbine acts the same as electricity generated from any other source. Once the energy leaves the generator and goes into the power grid, it displaces the same amount of non-renewable power. Purchasing green power in the form of energy certificates decreases the need for non-renewable power and thus promotes a cleaner environment. Safeway has committed to meeting all electricity needs of its U.S. fuel stations with green power.

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 1,801 stores in the United States and Canada and had annual sales of $35.8 billion in 2004. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.