SMITH’S AND FOOD 4 LESS ASSOCIATES IN LAS VEGAS RATIFY CONTRACT

CINCINNATI, OH, January 27, 2005 -- The Kroger Co. (NYSE: KR) today said members of United Food and Commercial Workers (UFCW) Union Local 711 in Las Vegas have approved a new, three-year labor agreement. The new contract covers approximately 2,100 associates at Smith’s and 900 associates at Food 4 Less.

The new agreement includes wage increases for many associates, bonuses, and new-hire provisions for pay and benefits that will help control costs. The contract also includes reductions in employer health care contributions and related modifications of health care benefits for current associates. In addition, employer contributions to pension plans will increase, while benefits in the plans for future service will be reduced.

“This agreement represents a balanced solution that provides Smith’s and Food 4 Less associates with the high-quality health care and good wages they need, at a cost that will make our Company more competitive and their jobs more secure,” said Don McGeorge, Kroger president and chief operating officer. “The negotiation process was challenging, but through it all, union and Company representatives demonstrated their commitment to do what is best for our associates and our customers.”

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the third quarter of fiscal 2004, the Company operated (either directly or through its subsidiaries) 2,531 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, Fry’s Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly or through subsidiaries, franchise agreements, or operating agreements) 792 convenience stores, 439 fine jewelry stores, 520 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.

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