KROGER EMPLOYEES RATIFY NEW FOUR-YEAR CONTRACTS IN MEMPHIS

CINCINNATI, OH, February 2, 2004 -- The Kroger Co. (NYSE: KR) today announced that it has been notified by UFCW Local 1529 that two new labor contracts covering approximately 6,500 employees in Memphis, western Tennessee and Mississippi have been ratified by union members.

The new four-year contract for clerks provides annual wage increases that will raise the top hourly rate for department heads to as much as $15.80 by the last year of the agreement. The top rate for full-time clerks will increase to $12.16 per hour by the last year of the contract, while the top rate for part-time will increase to $9.50 per hour over that period.

The second contract, which covers meat, seafood and deli employees, provides annual wage increases that will raise the top hourly rate for meat department heads to as much as $17.77 by the end of the contract. The new top rate for deli department heads will match the department head rates in the Clerk Agreement.

In both contracts, Kroger also will increase what it pays to provide health care benefits to employees by up to 8% annually.

"We are pleased to have a new contract in place that balances our employees’ need for competitive wages, health care benefits and pension with the Company’s need to address the significant economic and competitive threats facing our business," said Dick Tillman, President of Kroger's Delta division in Memphis.

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. The Company contributed $106 million to local communities and non-profit organizations in 2002. For more information about Kroger, please visit our web site at www.kroger.com.

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