Alberta Safeway Employees Ratify Contract

    CALGARY, Feb. 27 /CNW/ - Today Canada Safeway announced that the Retail
Employees in the Province of Alberta have ratified new three year collective
agreements which expire March 20, 2010. UFCW Local 401, UFCW Local 1118 and
BCTGM Local 252 representing the retail employees in Alberta held separate
meetings and votes across the Province from February 12 - 26th, 2008.
    The new collective agreements were recommended by all three Union locals
and provide significant wage increases and benefit improvements for the 11,500
Safeway employees who work in the 82 retail stores across the Province.
    "We are pleased that we have reached new collective agreements with our
three Union Locals," said Safeway President and Chief Operating Officer Chuck
Mulvenna. "We have provided substantial wage and benefit improvements for our
employees as well as new starting rates which will position Safeway positively
in this highly competitive labour market."
    The new rates will come into effect immediately for all current and new
Safeway employees.

    About Safeway

    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 1,738
stores in the United States and western Canada and had annual sales of
$40.2 billion in 2006. The company's common stock is traded on the New York
Stock Exchange under the symbol SWY.

For further information:

For further information: David Ryzebol, Vice President Public Relations
& Government Affairs, Calgary, Alberta, (403) 730-3511

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