KROGER TO PURCHASE THREE ALBERTSON’S STORES IN OMAHA AREA

CINCINNATI, OH, July 23, 2004 – The Kroger Co. (NYSE: KR) today announced it has reached an agreement with No Frills Supermarkets Inc. to purchase three Albertson’s stores in the Omaha area. The transaction is expected to be complete by early September. Financial terms were not disclosed.

The three stores, which Albertson’s had previously agreed to sell to No Frills, average approximately 57,600 square feet in size. They are located at the following addresses:

• 4405 N. 72nd St., Omaha
• 12025 West Center, Omaha
• 3614 Twin Creek Drive, Bellevue

The stores will become part of the Company’s Dillons division, which currently operates 112 stores in Kansas, Missouri, Arkansas, Oklahoma and Nebraska primarily under the Dillons, Baker’s and Gerbes banners. The three acquired stores will operate under the Baker’s banner.

"Omaha is an important area that offers attractive opportunities to expand our business,” said John Bays, Dillons president. “The acquisition of these three stores will enable us to provide better convenience, value and service to our customers. We look forward to interviewing Albertson’s employees for potential jobs.”

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the first quarter of fiscal 2004, the Company operated (either directly or through its subsidiaries) 2,536 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, Fry’s Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly, through its subsidiaries, franchise agreements, or operating agreements) 794 convenience stores, 439 fine jewelry stores, and 42 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.

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