[August 11, 2010]

Safeway Promotion Lets Shoppers Earn Money for Cash-Strapped Schools

Safeway Inc. this week launched its 6^th Annual 10% Goes Back to Schools program, a special in-store initiative that unites over 150 food manufacturers in support of education and students throughout the United States.

Through the 10% Goes Back to Schools program, which runs through September 14, 2010, Safeway is partnering with food manufacturers to donate 10 percent of the sale price of more than 2,300 selected products to local schools designated by customers. The initiative begins as many public school systems are facing unprecedented budget cuts and eliminating vital programs, such as physical education, music and art, as well as experiencing increasing class size.

"School districts have sent out an S.O.S. in the name of children who need our help in attaining an education," said Mike Minasi, President of Marketing for Safeway. "It makes sense for businesses to make a financial commitment to education, because today's students are tomorrow's workforce. We see this as an investment in the future of our communities."

Since 2005, Safeway's 10% Goes Back to Schools program has raised more than $15 million for schools. In 2009 alone, customers participating in the five-week program earned more than $3.4 million for the schools of their choice - schools like Betty Adams Elementary in Westminster, Colorado, which received $22,615, and Chapman Hill Elementary School in Salem, Oregon, which earned $18,465.

When customers use their Safeway Club Card to purchase products marked with a "yellow school bus," they will automatically accumulate donations assigned to the school of their choice. At the end of the program, customers will receive a final donation receipt totaling their "school dollars." They can take or mail the receipt to their chosen school. The school then redeems all receipts online, making the donation process extremely easy for the customer and the school.

Schools and customers who already participate in Safeway's eScrip rebate program will also benefit from 10% Back to Schools. Their final accumulated total will automatically be donated to their registered eScrip school or organization.

This year Safeway added an extra incentive for customers to get involved by helping schools earn even more money. The 100 schools that garner the most participation in the 10% Goes Back to Schools effort, as indicated by their earnings, will receive a $1,000 bonus. This adds $100,000 to the commitment that Safeway and its partners are making to the nation's schools.

Safeway is one of the largest corporate supporters of education, giving more than $20 million to schools and education programs each year. In addition, the company supports a wide range of important causes. In 2009 Safeway donated more than $250 million to hunger relief, cancer research, health and human services 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 1,712 stores in the United States and western Canada and had annual sales of $40.8 billion in 2009. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

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