3.09.2006 ET

(CSRwire) PLEASANTON, Calif.--(BUSINESS WIRE)--March 9, 2006--Safeway Inc. (NYSE:SWY) applauds new legislation signed into law today by President Bush to curtail the rising abuse of methamphetamine "meth" by establishing uniform standards for the sale of cough and cold products containing pseudoephedrine (PSE), a major ingredient in the production of meth. The Company announced additional measures it is taking to restrict the sale and availability of products containing PSE in its stores.

Beginning on March 1, Safeway reduced the number of products available for sale in its stores to approximately 17, down from more than 75 products a year ago. Products containing PSE can only be purchased from a Safeway pharmacy. Safeway stores without a pharmacy will only sell cold and flu medications that do not contain PSE. As the new federal law takes effect, the company is moving forward with plans to put in place additional sales limits, require identification and the signing of a logbook to be consistent with federal requirements.

"Reducing the number of products available and by placing these products behind the pharmacy will do a great deal to ensure their use only for legitimate purposes," said Safeway Executive Vice President Larree M. Renda. "We applaud the leadership of the Congress, particularly that of Senators Dianne Feinstein (CA) and Jim Talent (MO) for ensuring the passage of this important legislation."

In June of 2005, Safeway was one of the first major grocery retailers to announce it was voluntarily moving all single ingredient PSE products to be sold from secure locations in its stores. While complying with all local, state and federal laws and regulations regarding the sale of PSE products, the Company has had a longstanding policy of limiting multiple quantity purchases of products containing PSE in its stores. Additionally, Safeway has been active in establishing "meth watch" programs in various states, working with local law enforcement to ensure only legitimate sales and purchases of these products.

As the federal government has moved to address the "meth" problem, Safeway is urging additional action to combat the growing problem of organized retail crime (ORC). The organized theft and resale of retail products on the black market has grown substantially in the past year. Organized retail crime rings are providing an easy source of cash that is being used to fund drug use and other illegal activities in communities across the United States.

Safeway, along with other retailers and law enforcement organizations, is urging legislative action to address this growing ORC crisis which costs the retail industry approximately $35 billion annually in stolen goods and products. Additionally, the theft of these goods results in lost tax revenues for government in the hundreds of millions of dollars each year. Many of these stolen goods are being sold over the Internet and at flea markets around the country without consumers knowing the products could be stolen or counterfeit products. Safeway is particularly concerned about stolen goods with expiration dates, such as infant formula or other consumer health products, where product tampering can impact the public health.

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, headquartered in California, operates 1,775 stores in the United States and Canada and had annual sales of $38.4 billion in 2005. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

Copyright Business Wire 2006

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