HESCHEL ANNOUNCES PLANS TO RETIRE AFTER LEADING KROGER’S INFORMATION SYSTEMS FOR PAST DECADE; HJELM TO JOIN KROGER AS SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER

CINCINNATI, OH, August 8, 2005 -- The Kroger Co. (NYSE: KR) today said Executive Vice President and Chief Information Officer Michael S. Heschel plans to retire at the end of the fiscal year after leading the Company’s information systems unit for the past decade.

Mr. Heschel, 64, joined Kroger in 1991 as group vice president of management information systems (MIS). Three years later, he was promoted to senior vice president with responsibility for coordinating all MIS services, logistics and reengineering projects. He was appointed executive vice president and CIO in 1995.

“Over the past decade, Kroger has made significant investments in new technology and logistics to enable our stores, manufacturing plants, warehouses and offices to operate more efficiently. These investments have provided our associates with many of the tools they need to better serve our customers,” said David B. Dillon, Kroger chairman and chief executive officer. “Through it all, Mike’s leadership and thoughtful counsel have proved invaluable to our organization, and we are grateful for his contributions.”

Kroger also announced that Christopher T. Hjelm will join the Company later this month as senior vice president and chief information officer.

Mr. Hjelm, 44, has more than 20 years of technology leadership experience at high-growth Internet companies as well as in Fortune 500 firms. He most recently served as chief information officer of travel distribution services at Cendant Corp. While there, he led the division’s technology strategies and was responsible for all aspects of engineering, site architecture and operations.

Mr. Hjelm previously served as senior vice president for technology at eBay Inc., overseeing all aspects of technology. Under his leadership, eBay achieved record levels of site quality and reliability during a period of accelerating global business growth and new product introductions.

Mr. Hjelm also spent 14 years at Federal Express Corp., where he was senior vice president and chief information officer. At Federal Express, he was responsible for information technology planning, development, operations and revenue operations. His role also included reengineering of the global billing process and systems, formation of technology strategic planning and architecture, and worldwide standardization and expansion of technology services and products during a period of rapid international growth.

“We are very pleased to welcome Chris to Kroger’s senior leadership team,” said Mr. Dillon. “His breadth and depth of business and technology experience will help ensure that Kroger’s information systems group will continue to improve supporting the needs of our business while supporting Kroger’s growth.”

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the first quarter of fiscal 2005, the Company operated (either directly or through its subsidiaries) 2,524 supermarkets and multi-department stores in 32 states under two dozen local banners including Kroger, 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) 793 convenience stores, 432 fine jewelry stores, 552 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.

« Go back