KROGER EMPLOYEES IN GREATER CINCINNATI APPROVE NEW THREE-YEAR LABOR AGREEMENT

CINCINNATI, OH, October 27, 2004 -- The Kroger Co. (NYSE: KR) today announced that its associates in Greater Cincinnati have approved a new three-year labor agreement. The new contract, which covers approximately 8,500 Kroger employees at 70 stores in southwest Ohio, northern Kentucky and southeast Indiana, provides wages and benefits that will make Kroger more competitive on labor costs with other retailers in the market.

The new agreement includes wage increases, bonuses, additional pension contributions and modest employee contributions toward health care premiums.

“This agreement represents a balanced solution that provides Kroger associates with the high-quality health care and good wages they need, at a cost that will make Kroger more competitive and their jobs more secure,” said Bob Hodge, president of Kroger’s Cincinnati/Dayton Division. “The negotiation process was challenging, but through it all, union and Company representatives demonstrated their commitment to do what is best for our associates and our customers. Our people are the best in the business, and we look forward to building a successful, secure future together.”

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.

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