KROGER TO LAUNCH “SMITH’S MARKETPLACE” FORMAT IN UTAH
Five Fred Meyer Stores to be Converted to New Banner in June

CINCINNATI, OH, February 17, 2004 -- The Kroger Co. (NYSE: KR) today announced plans to introduce Smith’s Marketplace, a new store format that offers full-service grocery, pharmacy and a full selection of general merchandise, in Utah in June.

Under the plan, the following five Fred Meyer stores in the Wasatch Front region of Utah will be converted to the new Smith’s Marketplace banner in June:

• 555 South 200 West, Bountiful
• 455 South 500 East, Salt Lake City
• 3215 South Valley Street, Holladay
• 750 North Main Street, Logan
• 1820 West 9000 South, West Jordan

The five stores, which average 154,000 square feet, will be remodeled at a total cost of over $7.5 million to accommodate expanded grocery; produce, frozen food and dairy departments, as well as new bakery and service delis. Fred Meyer will close two stores in Granger and Ogden, Utah on April 17. The Fred Meyer store in Sandy, Utah will continue to operate until a suitable tenant is identified. Kroger is the parent of both retailers.

“We believe this conversion to Smith’s Marketplace stores will enhance Smith’s market position in Utah,” said Jim Hallsey, Smith’s president. “This is a win-win situation for our customers and employees. Our customers will be able to shop for groceries, home, apparel, electronics and other merchandise in a convenient neighborhood store from a retailer they already know and trust.”

“We’re proud of the outstanding job our employees have done to create a great shopping experience for Utah customers who appreciate the convenience of finding food and a wide selection of general merchandise under one roof,” said Darrell Webb, Fred Meyer Stores president. “Even though the banner will change to Smith’s Marketplace, customers will find the same service, selection and quality that they have come to appreciate at Fred Meyer.”

Smith’s and Fred Meyer intend to retain as many current employees as possible with positions at the Smith’s Marketplace locations and the Smith’s Food & Drug Stores. Fred Meyer will provide severance benefits, based on years of service, to those employees not retained.

The conversion builds on Kroger’s success with Fry’s Marketplace stores in Arizona. Fry’s, which is also a division of Kroger, converted 17 former Fred Meyer Marketplace stores to the Fry’s banner in 2000.

Smith’s currently operates 126 stores in Utah, Nevada, New Mexico, Montana, Idaho, Arizona and Wyoming. Fred Meyer currently operates 134 stores in Oregon, Washington, Idaho, Alaska and Utah.

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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