Safeway Doubles PowerPump Gas Rewards on Gift Cards

Expanded Program Doubles Gas Rewards for Every $100 in Gift Cards Purchased at Safeway From Over 300 Retailers, Restaurants, Sports and Entertainment Companies

PLEASANTON, Calif.--(BUSINESS WIRE)--Safeway Inc. (NYSE:SWY) today made gift-giving and holiday shopping more affordable by doubling PowerPump Gas Rewards for gift cards purchased at Safeway stores. The program begins today and provides customers with an opportunity for maximum savings during the holiday season.

This is the best fuel discount program in the marketplace, said Diane Dietz, Safeway Executive Vice President and Chief Marketing Officer. In addition to rewards earned on groceries and prescriptions, our customers can now get double rewards on gift card purchases just in time for the holidays. With Safeways best-in-class redemption capability, customers can combine multiple gas rewards in a single transaction and increase their savings dramatically.

Smart shoppers will buy gift cards to earn double gas rewards and then use the cards to buy holiday presents at shopping centers and department stores. The program allows Safeway customers to extend gas rewards to all of their holiday shopping. Gift cards continue to be holiday gifting favorites. PowerPump is available in all Safeway U.S. markets including its Vons, Pavilions, Randalls, Tom Thumb, Carrs, Genuardis and Dominicks banners. Customers outside of the vicinity of a Safeway fuel station will receive double gas rewards to use at a BP or ARCO station through year end.

This expanded PowerPump program is one of the many ways that Safeway is bringing extra value to its customers. The company provides additional savings through 5,000 Safeway club card specials, $5 Family Fridays, and O Organics making organic products accessible to everyone. Safeway is the smart way to shop.

ABOUT SAFEWAY www.Safeway.com

Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,743 stores in the United States and western Canada and had annual sales of $42 billion in 2007. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

Contacts

Safeway Inc.
Teena Massingill, 925-467-3810

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