KING SOOPERS ANNOUNCES SETTLEMENT WITH THE U.S. ATTORNEY FOR COLORADO REGARDING IMPROPER INVENTORY CONTROL
AND RECORD-KEEPING AT SEVEN PHARMACIES

DENVER, CO, October 21, 2005 -- King Soopers today announced that it has agreed to pay $7 million to settle claims by the U.S. Attorney for Colorado that King Soopers failed to comply with the Comprehensive Drug Abuse Prevention and Control Act of 1970 (the “Controlled Substance Act”).

During audits and investigations at seven of King Soopers’ 103 pharmacies in April 2004, the U.S. Drug Enforcement Agency (DEA) found that theft-prevention systems and inventory controls for some drugs were inadequate and that King Soopers was not consistently meeting all of the government-reporting requirements of the Controlled Substances Act. The audits and investigations also reported that a few King Soopers pharmacy employees had taken advantage of internal systems and some prescription medications were stolen. King Soopers has taken disciplinary action against those involved.

“We have cooperated fully with the U.S. Attorney, the DEA and other law enforcement agencies. We began taking voluntary corrective action in all our pharmacies as soon as we learned of the DEA’s concerns,” said Russ Dispense, King Soopers president. “We hired a nationally recognized pharmacy compliance expert to help overhaul our pharmacy security, inventory controls and record-keeping procedures. We are implementing these best practices in every King Soopers pharmacy so that we can do the best possible job of accounting for and protecting prescription drugs.”

He emphasized that the DEA audits and investigations “did not involve any issues related to the quality of care to our pharmacy customers.”

“The DEA is serious about enforcing laws to prevent theft from pharmacies, and so are we,” said Mr. Dispense. “ We are confident that the significant changes we are making will place King Soopers pharmacies in full compliance with all regulations and will constitute industry leading practices for theft prevention, inventory control and record-keeping for controlled substances .”

King Soopers’ parent firm, The Kroger Co. (NYSE: KR), recognized the $7 million liability in the first quarter of fiscal 2005. Kroger has agreed to make an additional $3 million payment if King Soopers and Kroger fail to comply with the terms of the settlement.

King Soopers operates 103 supermarkets in Colorado.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the second quarter of fiscal 2005, the Company operated (either directly or through its subsidiaries) 2,515 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) 791 convenience stores, 431 fine jewelry stores, 559 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.

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