KROGER PARTNERS WITH DUNNHUMBY OF THE UNITED KINGDOM TO BETTER UNDERSTAND CUSTOMERS’ NEEDS AND IMPROVE THEIR SHOPPING EXPERIENCE

CINCINNATI, OH, May 12, 2003 -- The Kroger Co. (NYSE: KR) today announced that it is partnering with London-based dunnhumby Limited to gain a better understanding of the Company’s customers and identify opportunities to enhance their shopping experience in its stores.

dunnhumby is the United Kingdom’s leader in the fields of data management, customer analysis and insight-led planning. It has helped clients such as BMW, Procter & Gamble, Diageo, Tesco and Virgin Atlantic learn more about their customers and develop customer-focused marketing initiatives.

“We believe that dunnhumby will help us better understand our customers by providing unique insight into their shopping needs,” said Don McGeorge, Kroger executive vice president. “For example, our merchandisers will learn which products and categories are important to each customer. We will learn more about how to fulfill our customers’ needs in a more relevant way. In short, dunnhumby’s insight will enable Kroger to make more informed merchandising and marketing decisions while improving our customers’ shopping experience.”

“The most successful loyalty programs work because they are able to take information and turn it into actions that provide customers with recognizable benefits,” said Edwina Dunn, dunnhumby chief executive officer. “Those benefits strengthen the customer’s bond with the company, because the customer can see that the company cares about them and their business. Our partnership with Kroger underscores their commitment to understanding their customers. Kroger recognizes that over the long term, retaining valuable customers is crucial to maintaining growth and staying competitive. We are delighted that Kroger has selected dunnhumby to help achieve these goals.”

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of fiscal 2002, the Company operated (either directly or through its subsidiaries) 2,488 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 operated (either directly or through its subsidiaries) 784 convenience stores, 441 fine jewelry stores, 376 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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