KROGER REACHES AGREEMENT TO ACQUIRE 20 FARMER JACK STORES IN MICHIGAN

CINCINNATI, Ohio, June 20, 2007 – The Kroger Co. (NYSE: KR) announced today that it has reached an agreement to acquire 20 Farmer Jack stores in the Detroit metropolitan area from The Great Atlantic & Pacific Tea Company, Inc.

The stores will become part of Kroger’s Great Lakes division, based in Columbus, Ohio. The division currently operates 244 stores under the Kroger banner in Ohio, West Virginia, and Michigan.

“We are excited to welcome Farmer Jack customers into our family of Kroger stores,” said Bruce Macaulay, president of Kroger’s Great Lakes division. “We look forward to continuing Farmer Jack’s tradition of great customer service and quality stores as we expand in this market.”

The Farmer Jack stores included in the sale agreement are located in the following cities in Michigan: Birmingham, Dearborn Heights, Dearborn (2 locations), Northville, Hartland Township, St. Clair Shores, Hazel Park, Troy (3 locations), Sterling Heights, Algonac, Grosse Pointe, Roseville, Westland (2 locations), Brownstown Township, Romeo, and Imlay City.

Kroger expects to interview most Farmer Jack employees. The transaction is expected to close in July, subject to customary closing conditions. Terms of the agreement were not disclosed.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. In 2006, the Company donated more than $150 million to help hunger relief efforts across the country, raise awareness of breast cancer, and support local schools and organizations in the communities it serves. At the end of fiscal 2006, the Company operated (either directly or through its subsidiaries) 2,468 supermarkets and multi-department stores in 31 states under two dozen local banners including Kroger and Kroger Marketplace, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s and Smith’s Marketplace, Fry’s and Fry’s Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly or through subsidiaries, franchise agreements, or operating agreements) 779 convenience stores, 412 fine jewelry stores, 631 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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