UFCW LOCALS 408, 455 AND 540 IN HOUSTON AND DALLAS, TEXAS RATIFY NEW LABOR AGREEMENTS WITH KROGER

CINCINNATI, Ohio, June 25, 2007 – The Kroger Co. (NYSE: KR) today said that it has been informed by UFCW Local Unions 408 and 455 in Houston and Local Union 540 in Dallas, Texas that their membership has ratified the new contract agreement with Kroger. The vote occurred on June 24th, and was effective immediately.

The three-year contract covers more than 13,000 Kroger associates at 202 stores in the Dallas and Houston metropolitan areas.

The new contract provides wage increases and affordable quality health care benefits for our associates and their families. The total benefit package with health care and pension is the best in the Texas retail food industry.

“This agreement provides a very good total compensation package for our associates and their families and helps to make Kroger more competitive in the marketplace,” said Bill Breetz, president of Kroger’s Southwest Division, which includes Kroger stores in Texas and Louisiana. “This is a perfect example of how fair and balanced agreements can be reached when the Union and company leadership stay focused and committed to negotiating at the bargaining table.”

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. In 2006, the Company donated $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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