Charitable Giving Activities of The Kroger Co.

The Kroger Co. contributed $150 million to local communities and non-profit organizations in 2006 as part of its “Neighbor to Neighbor” charitable giving program. Over the past five years, Kroger has contributed nearly $650 million to charitable causes around the country.

These contributions – which averaged more than $12.5 million per month – included donations made by The Kroger Co., the Company’s foundations, and funds raised from customers and associates through in-store events and promotions. Roughly 30,000 local schools, hunger relief agencies, youth programs and non-profit organizations in communities where Kroger operates stores or manufacturing facilities received support from the Company.

Kroger focuses its charitable giving in several key areas: hunger relief; K-12 education; grassroots service organizations; and women’s health. In addition, Kroger supports organizations that promote the advancement of women and minorities, The Salvation Army, and American Red Cross.

• Our retail divisions work closely with more than 85 regional food banks affiliated with America’s Second Harvest, the nation’s largest domestic hunger relief organization. Last year, the Company donated 30 million pounds of food valued at $45 million. For the fourth time in six years, Kroger was named "Retailer of the Year" by America's Second Harvest food banks.
• More than 29,000 schools, clubs churches, synagogues and other non-profit organizations earned funds through the discounted gift certificate and rebate programs in all retail divisions. This fundraising program is Kroger’s largest community activity, resulting in contributions of more than $30 million in 2006.
• Our divisions contributed $22.5 million to local schools and educational initiatives through cash and product donations, foundation grants, and the non-profit fundraising program.
• Associate donations and in-store fundraising generated $30 million in contributions to support local campaigns that included breast cancer research, the United Negro College Fund, disaster relief agencies and children’s hospitals.
• The Kroger Co. Foundation, Ralphs/Food 4 Less Foundation and Fred Meyer Foundation awarded approximately 1,600 grants totaling nearly $6 million. Grants are made to organizations within the Company's charitable guidelines that serve the communities where our customers and associates live and work. In 2007, the Fred Meyer and Ralphs/Food 4 Less foundations will merge with The Kroger Co. Foundation and cease separate operations. The consolidated Kroger Foundation will continue to support the communities served by Fred Meyer, Ralphs, Food 4 Less and Foods Co stores.
• Kroger customers and associates contributed more than $8 million to the Salvation Army’s annual Red Kettle campaign.
• Kroger is a major sponsor of the Susan G. Komen Race For the Cure events in almost all our major markets.