KROGER AGREES TO PURCHASE 18 RALEY'S STORES IN LAS VEGAS

CINCINNATI, OH, September 13, 2002 -- The Kroger Co. (NYSE: KR) today announced it has reached an agreement to purchase 18 Raley's stores in Las Vegas. The transaction, which is subject to certain customary conditions, is expected to close within 30 days.

The majority of the stores, which average 46,000 square feet in size, will operate under either the Smith's or Food 4 Less banner. Smith's currently operates 19 stores in Las Vegas, while Food 4 Less has five existing stores in the area and two additional stores under construction.

"Las Vegas is an important market for Smith's. The addition of these stores will provide outstanding growth opportunities for our business and added convenience for our customers," said James Hallsey, Smith's president. "Raley's has very qualified employees, and we look forward to interviewing and bringing many of them on to the Smith's team."

Added Dave Hirz, Food 4 Less president: "We are excited about the potential of these stores. We look forward to introducing Food 4 Less' special brand of friendly service to even more customers who appreciate quality, variety and service at everyday low prices."

Headquartered in Cincinnati, Ohio, Kroger is one of the nation's largest retail grocery chains. At the end of the first quarter of fiscal 2002, the Company (either directly or through its subsidiaries) operated 2,429 supermarkets and multi-department stores in 32 states under approximately two dozen banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's, Fry's and Fry's Marketplace, Dillon, QFC and City Market. Kroger also operates (either directly or through its subsidiaries) 780 convenience stores, 436 fine jewelry stores, 268 supermarket fuel centers and 41 food processing plants. Last year, Kroger contributed $129 million to support education, hunger relief and local non-profit organizations in the communities where the Company operates stores or manufacturing facilities. For more information about Kroger, please visit our web site at www.kroger.com.

« Go back