KROGER TO COMBINE MICHIGAN AND COLUMBUS DIVISIONS
Flora Promoted to President of Consolidated Division, Which Will Be Based in Columbus and Operate 229 Stores in Three States

CINCINNATI, OH, March 3, 2003 -- The Kroger Co. (NYSE: KR) today announced plans to combine its two retail divisions headquartered in Livonia, Michigan and Columbus, Ohio. The consolidation will enable to the Company to reduce operating costs, improve administrative efficiencies, and invest additional capital in the core grocery business to drive sales growth.

Kroger's Michigan division operates 113 stores under the Kroger and Kessel Food Markets banners in Michigan, while the Columbus division operates 116 stores under the Kroger banner in central and northwestern Ohio and parts of West Virginia.

Jon Flora, currently president of Kroger's Michigan division, will lead the combined division of 229 stores and will relocate to Columbus. As previously announced, M. Marnette Perry, currently president of the Columbus division, has been promoted to group vice president of perishables merchandising and procurement for the Company and will join Kroger's senior management team as a corporate officer in Cincinnati.

Mr. Flora said Kroger will maintain the regional office in Livonia to ensure that local marketing and operating decisions are kept close to the customer. Gary Raymond, currently vice president of operations in Michigan, and Terry Frey, vice president of merchandising, will lead the regional office and continue reporting to Mr. Flora.

Mel Bomprezzi, currently vice president of operations in Columbus, and Joe Grieshaber, vice president of merchandising, will remain in their respective positions and also report to Mr. Flora.

Kroger employs approximately 12,500 associates in its Michigan division stores and 14,500 in its Columbus division stores. The combining of the divisions will not affect any of those store employees.

"Our customers will continue to see the same familiar faces in their neighborhood stores," said Mr. Flora. "Kroger's commitment to our customers and their communities in Michigan will not change. Michigan is an important market for Kroger. Over the past two years, we have invested $160 million to build, expand or remodel our store base in Michigan. We believe there are significant growth opportunities in this state, and we intend to pursue them."

He said Kroger plans to invest more than $185 million over the next three years to build, expand and remodel its Michigan store base. One result of this capital investment will be the creation of at least 500 new store-level jobs in Michigan this year alone.

"This is a significant capital investment for Kroger and reinforces our commitment to providing our customers with the same great service, selection and value that they have come to expect from Kroger," said David B. Dillon, Kroger president and chief operating officer.

Mr. Flora also said that Kroger will continue its strong support of local communities. Last year the Company contributed more than $1.5 million to Michigan schools, food banks, non-profit organizations and charities.

With the combination of the Michigan and Columbus divisions, Kroger now operates 17 retail divisions.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation's largest retail grocery chains. At the end of the third quarter of fiscal 2002, the Company operated (either directly or through its subsidiaries) 2,461 supermarkets and multi-department stores in 32 states under approximately 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 operates (either directly or through its subsidiaries) 783 convenience stores, 441 fine jewelry stores, 341 supermarket fuel centers and 41 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.

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