RALPHS ASSOCIATES RATIFY NEW LABOR AGREEMENT

Los Angeles, July 23, 2007 – Ralphs Grocery Co. said today it has been informed that members of UFCW Locals in Southern California have ratified a new contract with the Company.

"We appreciate the assistance of the Federal Mediation and Conciliation Service in helping us reach an agreement that continues to provide quality jobs for our associates and a great shopping experience for our customers," said Dave Hirz, president of Ralphs Grocery Co., a division of The Kroger Co. (NYSE: KR).

The four-year contract, effective immediately, covers more than 19,000 employees represented by UFCW Local 135, Local 324, Local 770, Local 1036, Local 1167, Local 1428 and Local 1442.

"This agreement provides wage increases and affordable quality healthcare benefits for our associates and their families and keeps Ralphs competitive in the marketplace," Mr. Hirz said.

Ralphs, founded in 1873, operates 265 supermarkets in California. Last week, the Company opened its newest store in downtown Los Angeles. The full-service store, featuring Ralphs' popular upscale Fresh Fare design, is located at 645 West 9th Street, between Flower and Olive streets. For more information about Ralphs, please visit
www.ralphs.com.

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