PHOENIX, Arizona, December 11, 2009 – Associates with Fry’s Food Stores, a division of The Kroger Co. (NYSE: KR), have ratified a new contract with the United Food & Commercial Workers Union Local 99, the company said today.

The new agreement covers about 13,000 Fry’s associates who work in 120 stores throughout Arizona. The agreement also covers about 400 Smith’s associates who work in four stores in Arizona.

“Both Local 99 and Fry’s came together and worked hard to reach an agreement that provides quality jobs, increases compensation, stabilizes the pension fund, and provides high quality health care for associates and their families,” said Jon Flora, president of Fry’s. “This agreement also keeps Fry’s competitive in this marketplace.”

Kroger, the nation’s largest traditional grocery retailer, employs more than 326,000 associates who serve customers in 2,469 supermarkets and multi-department stores in 31 states under two dozen local banner names including Kroger, City Market, Dillons, Jay C, Food 4 Less, Fred Meyer, Fry’s, King Soopers, QFC, Ralphs and Smith’s. The Company also operates 773 convenience stores, 392 fine jewelry stores, 850 supermarket fuel centers and 40 food processing plants in the U.S. Kroger, headquartered in Cincinnati, Ohio, focuses its charitable efforts on supporting hunger relief, health and wellness initiatives, and local organizations in the communities it serves. For more information about Kroger, please visit www.kroger.com.

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