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Press Releases Wednesday, August 13, 2003   
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DAVE LAUFFER PROMOTED TO CHIEF OPERATING OFFICER AT SAFEWAY.COM

PLEASANTON, Calif. - Aug. 12, 2003 - Dave Lauffer has been promoted to the position of Chief Operating Officer at Safeway.com, the online grocery shopping service of Safeway Inc. Lauffer joined Safeway.com in October 2002 as Vice President of Operations. He has overall responsibility for in-store and delivery operations for the service, which operates in eight western U.S. metropolitan areas under either the Safeway.com or VONS.com brands.

Lauffer replaces Gary Sargeant as C.O.O. Sargeant, an executive with Tesco PLC of the United Kingdom, which owns 35 percent of Safeway.com, recently completed a two-year assignment with Safeway.com in the United States. He has since returned to the U.K. to assume new duties with Tesco.

Prior to joining Safeway.com, Lauffer was a retail operations manager in Southern California with Vons, a Safeway company. At Vons, Lauffer worked for 12 years in a variety of progressively responsible positions, including Director-Industrial Engineering, Director-Retail Support, and Category Manager of Frozen Foods.

Customers of both Safeway.com and VONS.com are guaranteed the same excellent selection of items and identical prices found at their local Safeway, Vons and Pavilions stores. Customers can go online 24 hours per day, seven days a week to place an order, which can be delivered the same day when the order is placed prior to 9:30 a.m. Personal shoppers take the online order and follow a computerized pathway through a nearby store, selecting items, scanning them, and preparing them for delivery. Trained drivers then deliver the order within a promised two-hour delivery window from 10 a.m. to 8 p.m.

Safeway.com offers online service in Seattle, Vancouver, Wash., Portland, Sacramento and the San Francisco Bay Area. VONS.com is the online service available in Los Angeles / Orange County, San Diego and Las Vegas.

About Safeway Inc.
Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America. The company operates 1,793 stores in the United States and Canada, and currently has approximately 200,000 employees. The company`s common stock is traded on the NYSE under the symbol SWY.

About Tesco PLC
Tesco is the fastest-growing major retailer in the world and operates 900 stores in the United Kingdom, Republic of Ireland, Hungary, Poland, Czech Republic, Slovakia, Thailand, South Korea and Taiwan. It has 240,000 staff worldwide and 25 million sq. ft. of sales space; 40 percent is outside of the U.K.

Contact:
Mark Marymee Director of Public Relations, Safeway.com
(925) 750-1554
mobile (510) 541-3623
mmarymee@groceryworks.com
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