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Eighteen Kroger fuel stations in Houston and Dallas will offer the renewable fuel

CINCINNATI, OH, March 30, 2006 – The Kroger Co. (NYSE: KR) today announced 18 fuel stations in Texas will sell E85 fuel. Texas leads the nation with more than 250,000 E85 flexible fuel vehicles on the road, and Kroger’s rollout of pumps that sell E85 fuel will provide convenient access for Texas motorists.

E85 flexible fuel vehicles can use both traditional gasoline and E85. E85 is a blend of 15 percent gasoline and 85 percent ethanol, which is a renewable, domestic fuel; the use of it may reduce greenhouse gases and the nation’s dependence on petroleum.

“Kroger is excited to offer this innovative fuel to Texas customers. We believe customer interest in this alternative, renewable fuel will grow as it becomes more conveniently available,” said David B. Dillon, Kroger chairman and chief executive officer.

“We are pleased to partner with the State of Texas, General Motors and Abengoa Bioenergy. Kroger will seek other opportunities to offer customers E85 fuel both in Texas and throughout the nation,” said Dillon.

Kroger operates more than 500 supermarket fueling stations nationwide, including more than 60 in Texas, all of which are located next to Kroger retail grocery stores. Kroger also operates more than 700 convenience-store fueling sites.

Kroger is making the station improvements needed to offer E85 in Dallas and Houston this summer, and more Kroger fuel centers could offer E85 as consumer demand grows. Kroger will price E85 ethanol lower than regular, unleaded gasoline, and Kroger Plus Card customers will enjoy the additional per gallon savings offered on all types of fuel.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of fiscal 2005, the Company operated (either directly or through its subsidiaries) 2,507 supermarkets and multi-department stores in 31 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, 428 fine jewelry stores, 579 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at

This press release contains certain forward-looking statements about the future performance of the Company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by the words "is" and "will." These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially. Our expectation that eighteen stations will be converted this summer and will sell E85 fuel could be affected by weather delays, shortages of materials necessary to make the improvements, and changes in supply of E85 or in the demand for the alternative fuel. Although we expect the retail price of E85 fuel to be less than that of regular unleaded fuel, our ability to sell E85 at a retail price below that of regular unleaded fuel will depend on our ability to obtain a reliable source of E85 at a lower cost than that of regular unleaded fuel. We assume no obligation to update the information contained herein.

Kroger Contacts:
Media: Lynn Marmer
(513) 762-4441

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