Safeway Offers Affordable Seasonal Flu Vaccinations in U.S. Stores

Safeway Inc. (NYSE:SWY) added to its leadership reputation in health care reform and cost control by offering seasonal flu vaccines in its U.S. stores at a substantial savings compared with the cost of doctor-administered vaccines. The lower cost will help consumers and businesses control health care spending in a challenging economy.

Now through March 2010, or while supplies last, Safeway stores will provide seasonal flu vaccines on a "walk-in” basis at most stores, and through scheduled flu vaccine clinics at others. The cost of a vaccine administered at a Safeway pharmacy is far below the cost of a shot administered during a doctor office visit. Safeway is also providing an off-site flu clinic service in most states for businesses, senior centers and nursing homes that choose to provide their employees or residents with the convenience of receiving a flu vaccine where they work or live.

"We estimate nearly $100 million in savings to the health care system through our program alone,” said David Fong, Safeway Senior Vice President of Pharmacy. "We have made the process of getting a flu vaccine affordable and convenient. Individuals have no reason to go unprotected this flu season nor should businesses risk lost productivity due to a sick workforce,” said Fong.

The Centers for Disease Control and Prevention predicts an unusually severe flu season, elevating the urgency for certain groups and demographics to receive the vaccine. This comes as the economy has forced many people to cut costs at the expense of their health. According to a Kaiser Family Foundation survey, one in four Americans said the cost of a doctor's visit has forced them to delay health care in the past year.

While anyone wishing to reduce their chances of getting the flu can get vaccinated, the Centers for Disease Control’s Advisory Committee on Immunization Practices recommends that people in the following categories get vaccinated each year:

1. Everyone from 6 months of age to 19 years of age

2. Pregnant women

3. People 50 years of age and older

4. People of any age with certain chronic medical conditions

5. People who live in nursing homes and other long-term care facilities

6. People who live with or care for those at high risk for complications from flu, including:

a. Health care workers

b. Household contacts of persons at high risk for complications from the flu

c. Household contacts and out-of-home caregivers of children less than 6 months of age (these children are too young to be vaccinated)

Information about stores offering the flu vaccine can be found at www.safeway.com/flu or by contacting a Safeway pharmacy. Medicare Part B participants will receive the flu shots at no charge.

In addition to providing seasonal flu vaccines, Safeway is working with state, local and federal health authorities to obtain a supply of the vaccine to combat against the H1N1 "Swine Flu” virus. The vaccine is expected to be available in the United States in late October.

Safeway also offers full-service adult and adolescent immunization services for the prevention of shingles, tetanus, hepatitis, pneumococcal, meningococcal and more. Safeway owns and operates stores under the Safeway, Vons, Dominick’s, Genuardi’s, Carrs, Randalls, Tom Thumb, Pak ‘n Save and Pavilions banners.

Safeway has developed a well-known reputation for health care innovation in part by reversing the national trend of rising health care costs through an innovative plan for workers that pays 100% of preventive care, rewards good behavior and allows employees to take more control of their health care decisions. Through prevention and behavior incentives the company has produced remarkable results for employees by providing a better, more comprehensive health plan with significantly lower out-of-pocket costs. Safeway Chairman, President and CEO, Steve Burd has also formed a coalition of more than 60 like-minded business leaders to forge market-based healthcare reforms to solve the nation’s healthcare crisis.

ABOUT SAFEWAY www.Safeway.com

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,739 stores in the United States and western Canada and had annual sales of $44.1 billion in 2008. The company’s common stock is traded on the New York Stock Exchange under the symbol SWY. Safeway supports a broad range of charitable and community programs and in 2008 donated more than $248 million to important causes, such as cancer research, education and hunger relief.