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Albertson's Expands Energy Management Program to Include All of Its Stores Throughout the Country

Albertson's Expands Energy Management Program to Include All of Its Stores Throughout the Country

Published 07-31-01

Submitted by Albertson's, Inc.

Buoyed by the positive results of pilot programs conducted in seven Western states, Albertson's, Inc., (NYSE: ABS) announced today that it will expand its energy conservation program to all of the Company's more than 2,500 grocery and drug stores from coast to coast.

"Albertson's is concerned about and committed to the issues affecting the well-being of American citizens," said Lawrence R. Johnston, Albertson's chairman and chief executive officer. "The escalating cost and finite supply of energy is now our nation's number one concern. It affects every American and the operations of all businesses. Albertson's is dedicated to doing its part in conserving the precious energy resources of the communities in which we do business."

Johnston said the target goal of the coast-to-coast conservation program is to reduce the Company's annual energy consumption by 10-percent, or a reduction of approximately 480,000,000 kilowatt-hours of electricity per year. These energy savings equate to pollution prevention of 720-million pounds of carbon dioxide, or the equivalent to removing 72,000 old cars from the road each year, or planting 98,630 acres of trees.

Albertson's first began taking energy conservation measures in the mid-70s and has been a long-time partner with the Environmental Protection Agency's Energy Star - a program designed to promote energy efficiency and reduce carbon dioxide emissions. The Company has a proven track record of being a responsible corporate citizen in communities across the country.

"Under our new nationwide program, we are making a substantial capital commitment to new-age energy management technologies to help us further reduce our energy consumption," Johnston said. "These actions will not in any way compromise the safety of our customers and associates or the quality of the products and service available in our stores."

Elements of the Company's technology-driven energy program include a 25- to 50-percent reduction of sales-area lighting; adjusting thermostats to 75 degrees in summer and 68 degrees in winter; turning off outdoor, wall and accent lighting during the day; limiting equipment use whenever possible; and implementing energy audits and an effective maintenance program. Among the energy management technology initiatives under way at the Company are stand-alone, microprocessor-based systems that allow remote control of refrigeration, heating, cooling, and lighting systems.

Albertson's has an extensive history of energy conservation, which spans more than two decades. In the mid-70s, the Company began installing energy management systems in its stores. In August of 2000, the Company began dimming the in-store lights at its food and drug stores across the country for six to eight hours each night; and in all of its 770 California stores, the Company reduced store lighting by as much as 50-percent, 24 hours a day. In ensuing months, the pilot program was extended to more than 400 additional stores in Nevada, Utah, Oregon, Washington, Idaho and Arizona. Elements of the initiative were fine-tuned before the decision was made to extend the program to all Albertson's supermarkets and drugstores, which operate under a variety of well-known retail banners.

"We are deeply committed to expanding the civic leadership of Albertson's and its family of stores in the communities we serve, as we conserve energy and natural resources as well as help to protect the environment," Johnston said. "It's good business. And, more importantly, it's the right thing to do. Our reduction in energy usage will be substantial. We estimate that these new conservation measures will save enough power to meet the average annual energy needs for approximately 50,000 American families." As part of its energy conservation program, Albertson's said it is accelerating a strategy to outfit all of its new and existing supermarkets and drugstores with advanced energy management systems to maintain high levels of operating efficiencies and customer comfort and convenience while controlling fuel consumption. Energy management systems already are in place in about 55-percent of the Albertson's retail stores and the Company expects to have the technologies in all of its remaining U.S. stores and distribution centers by December 2002.

Albertson's is one of the nation's largest food and drug retailing companies, with annual revenues of approximately $37 billion. Based in Boise, Idaho, the Company currently operates more than 2,500 retail stores in 36 states across the United States, under banners including Albertson's, Jewel-Osco, Acme, Osco Drug, Sav-on Drugs, Max Foods, Super Saver, and Seessel's by Albertson's.

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