Food 4 Less and the Southern California UFCW Locals
Reach New Collective Bargaining Agreement

LOS ANGELES, CA – October 5, 2004 – Food 4 Less, California’s leading price-impact supermarket chain, and United Food and Commercial Workers Locals 135, 324, 770, 1036, 1167, 1428 and 1442 announced that a new three-year labor agreement has been ratified.

The new agreement, which was reached after several months of negotiations, covers approximately 5,700 associates working in 101 Food 4 Less-operated stores serving Kern, Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura counties. The agreement will enable Food 4 Less to remain competitive in Southern California while maintaining good wages and benefits for its associates.

“This agreement represents a balanced solution that provides our Associates with the good health care and competitive wages they deserve at a cost that is fair to everyone involved, including Food 4 Less customers,” said Bryan Kaltenbach, group vice president for Food 4 Less. “Our Associates are the best in the business, and they are the reason for all of the success Food 4 Less has enjoyed over the years. Working together, we will build a better future for our Associates, our customers and our Company.”

Food 4 Less currently operates 137 price-impact, warehouse-format supermarkets under the banners Food 4 Less in Southern California, Nevada, Illinois and Indiana, and Foods Co in Northern California, from its headquarters in Compton, CA. Food 4 Less is a division of The Kroger Co., (NYSE:KR), one of the nation’s largest grocery retailers, headquartered in Cincinnati, Ohio. For more information about Food 4 Less, visit www.food4less.net.

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