KROGER CALLS ON BEEF SUPPLIERS TO IMMEDIATELY ADOPT NEW USDA REGULATIONS

CINCINNATI, OH, January 12, 2004 -- The Kroger Co. (NYSE: KR) today called on its beef suppliers to immediately implement new regulations proposed by the U.S. Department of Agriculture that would further enhance the safety of the nation’s beef supply.

The USDA regulations are specifically aimed at strengthening protection against bovine spongiform encephalopathy (BSE).

“Kroger shares the concerns of millions of our customers that our beef supply is as safe as is possible,” said Don McGeorge, Kroger president, in a letter to the Company’s beef suppliers. “In December, the USDA announced new guidelines concerning the handling of cattle for human consumption. We expect all Kroger suppliers to immediately implement the USDA guidelines and not wait for the regulatory process to take effect.”

Specifically, all beef suppliers must be able to certify to Kroger the following:

• No “downer” animals (or those exhibiting BSE-like symptoms) were processed for food for human consumption.
• All cattle tested for BSE are held until test results are received. Such notification should be in writing and should clearly identify the specific carcass.
• Spinal cords, brains and other materials that are known as “specified risk material” are not to be used for human food.
• As stated previously, Kroger does not allow any Advanced Meat Recovery (AMR) systems products in its ground beef.
• Slaughtering processes must ensure that portions of the animal’s brain are not dislocated into the tissues of the carcass.
• Mechanically separated meat is not used for human food.

Kroger said it will “not be able to do business with suppliers that are unable or unwilling to comply with these requirements.”

Mr. McGeorge also said Kroger is urging the USDA to create a mandatory animal identification system that tracks all cattle from birth to slaughter, and develop more effective testing techniques and technology to detect BSE. Both steps are designed to increase the prevention and detection of BSE in the U.S.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the third quarter of fiscal 2003, the Company operated (either directly or through its subsidiaries) 2,530 supermarkets and multi-department stores in 32 states under two dozen banners including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s, Fry’s and Fry’s Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly, through its subsidiaries or franchise agreements) 798 convenience stores, 445 fine jewelry stores, 442 supermarket fuel centers and 41 food processing plants. (These store figures include locations affected by ongoing labor disputes.) The Company contributed $106 million last year to local communities and non-profit organizations. For more information about Kroger, please visit our web site at www.kroger.com.

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