Funds to Be Used for Groundbreaking Research at the Top Centers in North America

PLEASANTON, Calif., Jul 21, 2008 (BUSINESS WIRE) -- Safeway Inc. (NYSE:SWY), one of the nation's largest corporate
supporters of cancer research and treatment, today announced it raised
a record $13.2 million during the company's June prostate cancer
fundraising and awareness campaign, a program created to fuel
leading-edge cancer research.

"We continue to be impressed and thankful for the generosity of
our customers and dedication of our employees in helping find a cure
for prostate cancer," said Safeway Chairman, President and CEO, Steve
Burd. "This kind of exceptional outcome tells us this cause resonates,
and that the initiative is having a meaningful impact."

This marks the eighth consecutive year that Safeway has partnered
with the Prostate Cancer Foundation (PCF), the world's largest
philanthropic supporter of prostate cancer research. Since 2000,
Safeway has raised nearly $42 million for prostate cancer research at
some of the top cancer centers in North America.

"We are thrilled with the results of Safeway's 2008 campaign for
prostate cancer," said Jonathan Simon, MD, CEO and President of the
Prostate Cancer Foundation. "Without these funds, hundreds of critical
experiments to end prostate cancer would not continue in future years.
The fact that the program raised significantly more compared to last
year is astounding and a testament to the compassionate spirit of
Safeway customers and employees. We are extremely grateful to Safeway
for its support through the years."

Each June Safeway and its banner stores -- Vons, Pavilions,
Genuardi's, Dominick's, Carrs, Randalls, Tom Thumb and Pak 'N Save --
conduct fundraising activities and solicit donations in support of
prostate cancer research. The company also holds awareness-raising
events in various markets. For example, this year the company
sponsored a Father's Day cook-off competition in which Hall of Fame
Dodgers manager Tommy Lasorda and San Francisco Giant Aaron Rowand
challenged Oakland A's Mark Ellis and Mike Sweeney to a steak grilling
competition at a Safeway store in San Francisco. Sweeney told of his
father's recent winning bout against the disease. Lasorda is a
longtime supporter of the Prostate Cancer Foundation as are a number
of Major League baseball players.

Safeway and PCF recently partnered in the creation of the S.T.A.R.
Team (Special Team Amplification of Research), an interdisciplinary
group of investigators from multiple prominent cancer research
centers, including Johns Hopkins University School of Medicine, the
University of Michigan Cancer Center and the University of British
Columbia with additional input from University of Washington, M.D.
Anderson Cancer Center and Emory University.

Safeway and PCF donated a combined $6 million to launch the team's
collective research into the role that targeted heat plays in cancer
treatment, specifically prostate cancer therapy.

Other successful joint ventures for PCF and Safeway include the
PCF/Safeway Career Development Program to support innovative cancer
research projects directed by young scientists interested in careers
in cancer research. Safeway is also one of the largest corporate
supporters of breast cancer research and awareness, having raised and
donated nearly $41 million since 2001.

Cancer research is one of many important causes supported by
Safeway and The Safeway Foundation, the company's philanthropic arm.
In total, Safeway supports a broad range of charitable and community
programs and in 2007 donated more than $172 million, the equivalent of
20% of its net income, to causes such as education, hunger relief and
programs focused on assisting people with disabilities.

About Safeway www.Safeway.com

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 1,740 stores in the United States and Canada and had annual
sales of $42.3 billion in 2007. The company's common stock is traded
on the New York Stock Exchange under the symbol SWY.

About the Prostate Cancer Foundation

Prostate cancer strikes one out of every six American men. The
Prostate Cancer Foundation (PCF) is the world's largest philanthropic
source of support for prostate cancer research to discover better
treatments and a cure for recurrent prostate cancer. PCF pursues its
mission by reaching out to individuals, corporations and others to
harness society's resources -- financial and human -- to fight this
deadly disease. Founded in 1993, the PCF has raised $350 million and
provided funding for more than 1,500 research projects at nearly 200
institutions worldwide. The PCF also advocates for greater awareness
of prostate cancer and more government resources, resulting in a
twenty-fold increase in government funding for prostate cancer. More
information about PCF can be found at www.pcf.org.

SOURCE: Safeway Inc.

Safeway Inc.
Brian Dowling, 925-467-3787

Copyright Business Wire 2008