FRED MEYER AND QFC STORES REACH TENTATIVE AGREEMENT WITH UFCW LOCALS 21, 44, 81 AND TEAMSTERS LOCAL 38 IN SEATTLE

SEATTLE, August 21, 2007 – Fred Meyer and QFC stores, both divisions of The Kroger Co. (NYSE: KR), said today they have reached a tentative agreement on new grocery, meat and cashier contracts with United Food & Commercial Workers Union Locals 21, 44, 81 and Teamsters Local 38 in Seattle.

The tentative agreement covers 3,500 Fred Meyer associates and 4,500 QFC associates at stores in King, Snohomish and Kitsap counties. Fred Meyer and QFC negotiated the contracts as part of a multi-employer group which also included representatives of Safeway and Albertsons.

The UFCW will fully recommend this tentative agreement to its members for consideration at ratification meetings on Sunday, August 26, 2007. Details of the tentative agreement are not being released pending ratification.

Fred Meyer Stores, based in Portland, Ore., offers one-stop shopping at its 127 multi-department stores in four western states. Nearly 30,000 Fred Meyer associates help customers fill their food, apparel, and general merchandise needs in Alaska, Idaho, Oregon and Washington. Stores range in size from 65,000 to 200,000 square feet and carry more than 250,000 products under one roof. Additionally, Fred Meyer contributes more than $5 million to communities across the Northwest each year through grants from the Fred Meyer Foundation as well as product donations, cash donations and sponsorships. For more information, please visit www.fredmeyer.com.

QFC, headquartered in Bellevue, Wash., operates 77 stores in Washington and Oregon and employs nearly 5,800 associates. In 2006, QFC donated more than $1million to local charities and nonprofit organizations in cash donations, product donations, and sponsorships. In addition, QFC donated more than 3.4 million pounds of food to local food banks. QFC has a long history as a neighborhood grocer, offering the highest quality products, exceptional service, and the finest shopping experience in the market. For more information, please visit www.qfc.com.

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