KROGER CUSTOMERS IN GREATER CINCINNATI AND DAYTON EARN FREE GROCERIES WITH NEW 1-2-3 REWARDS™ MASTERCARD©
New Card Offers Customers Incredible Savings on Thousands of Products, Including Fuel

CINCINNATI, OH, September 30, 2004 – The Kroger Co. (NYSE: KR) will introduce an exciting new credit card Sunday that rewards customers with free groceries fast and incredible savings on thousands of their favorite brands and products available only at Kroger stores in Greater Cincinnati and Dayton.

Using the new 1-2-3 REWARDS™ MasterCard©, customers earn one reward point for every $1 spent anywhere, two reward points for every $1 spent in participating Kroger-owned stores and supermarket fuel centers, and three extra points per $1 spent on our own family of quality brands, including Private Selection and Kroger brand products. That adds up to a possible total of five points per $1 spent at Kroger. Every 1,000 points earns a $10 reward to spend in Kroger stores. The rewards will be mailed to customers quarterly in November, February, May and August.

In addition, customers will receive a 0%* introductory annual percentage rate (APR) on balance transfers and purchases for six months. The 1-2-3 REWARDS™ MasterCard© also doubles as a Kroger Plus shoppers’ card.

Kroger is supporting the card launch with an aggressive advertising campaign beginning Sunday that includes full-page ads in local newspapers, TV and radio commercials, billboards, in-store promotions and direct mail to 275,000 households in Greater Cincinnati and Dayton.

“We’re delighted to offer our loyal customers the opportunity to earn unlimited free groceries for any purchase they make using their 1-2-3 REWARDS™ MasterCard©,” said Bob Hodge, president of Kroger’s Cincinnati/Dayton division. “We recognize that our customers have a lot of choices in where to shop, and we’re happy to reward them for choosing Kroger.”

“The 1-2-3 REWARDS™ MasterCard© is an important part of our effort to build closer relationships with our customers and improve their shopping experience,” added Kathleen Kelly, president of Kroger Personal Finance, which was formed late last year to enhance the financial services offered within the Company’s stores. “It’s three cards in one. Our customers can now enjoy the convenience of a rewards card, the value of the Kroger Plus card and the worldwide acceptance of MasterCard – all in one great card with a 0% introductory rate and no annual fee.”

Credit card applications will be available in all Kroger stores in Greater Cincinnati and Dayton beginning Sunday, October 3. Applications are also available by calling toll-free 1-800-576-4376 or online at www.krogerpersonalfinance.com.

Kroger plans to expand the card program to other markets in 2005.

Kroger partnered with the Royal Bank of Scotland Group to develop and launch the card.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the second quarter of fiscal 2004, the Company operated (either directly or through its subsidiaries) 2,530 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 or through subsidiaries, franchise agreements, or operating agreements) 792 convenience stores, 439 fine jewelry stores, 502 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.

* For six billing cycles, thereafter from 9.99% variable APR (as of September 2004) will apply. A 3% balance transfer fee is waived for six billing cycles. See application for complete details.

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