Catalina Marketing Installs New Color Printers across Safeway Chain

Safeway, one of the largest food and drug retailers in NorthAmerica, piloted Catalina's new Catalina Connections(TM) colorprinters last year and was also one of Catalina's first retailpartners to commit to installing the printers across its entire chain.The Safeway installation, which includes more than 1,500 stores, beganin June and will be completed in early September.

"Safeway was instrumental in helping us pilot and launch theofficial color printer installation process. They are a long-standingCatalina retail partner and have always understood the valueCatalina's targeted marketing provides to their consumers," said EdKuehnle, president of Catalina Marketing Services. "The full-graphics,color communications are creating new opportunities for our retail andour manufacturer partners, allowing them to more effectively promoteand enhance their stores' and their brands' equity, and ultimatelyhaving lasting consumer impact."

Commenting on the successful installations, Michael Minasi, SeniorVice President, Marketing, Safeway said, "We see the new CatalinaConnections printers as an important enhancement of Catalina'sproduct. It represents an exciting new communications opportunity forSafeway. The addition of color will allow us to use the printers in anentirely new way."

The Safeway installation marks the official launch of Catalina'sinitiative that will put approximately 145,000 new printers in grocerystores throughout the U.S. by the end of 2007. Earlier this year,Catalina announced the company's transformation from black and whitethermal point-of-sale printers, to new full-color graphic ink jetprinters. The technology for the new printers was designed by Epsonand successfully piloted in two major retail grocery chains: Safewayand Sweetbay Supermarket (owned by Delhaize Group).

Catalina officially announced the company's $100 millioninvestment in its color technology initiative in January, 2006. By theend of 2007, a majority of the domestic Catalina Marketing Network(R)will be installed with the new color printers.

About Safeway

Safeway Inc. is a Fortune 50 company and one of the largest foodand drug retailers in North America based on sales. The companyoperates 1,772 stores in the United States and Canada and had annualsales of $38.4 billion in 2005. The company's common stock is tradedon the New York Stock Exchange under the symbol SWY.

About Catalina Marketing Corporation

Based in St. Petersburg, Fla., Catalina Marketing Corporation(www.catalinamarketing.com) was founded over 20 years ago based on thepremise that targeting communications based on actual purchasebehavior would generate more effective consumer response. Today,Catalina Marketing combines unparalleled insight into consumerbehavior with dynamic consumer access. This combination of insight andaccess provides marketers with the ability to execute behavior-basedmarketing programs, ensuring that the right consumer receives theright message at exactly the right time. Catalina Marketing offers anarray of behavior-based promotional messaging, loyalty programs anddirect-to-patient information. Personally identifiable data that maybe collected from the company's targeted marketing programs, as wellas its research programs, are never sold or provided to any outsideparty without the express permission of the consumer.

Certain statements in the preceding paragraphs areforward-looking, and actual results may differ materially. Statementsnot based on historic facts involve risks and uncertainties,including, but not limited to, potential complications, hardware andsoftware issues and delays related to the schedule, installation andoperation of color printers, the effectiveness of color printers toincrease sales and redemption rates or provide a more effectiveadvertising medium, the changing market for promotional activities,especially as it relates to policies and programs of packaged goodsand pharmaceutical manufacturers and retailers, government andregulatory statutes, rules, regulations and policies, the effect ofeconomic and competitive conditions and seasonal variations, actualpromotional activities and programs with the company's customers, thepace of installation of the company's store network including as itrelates to the installation of color printers in existing and futureretail channels, the acceptance by the company's manufacturer clientsand retailers of color printers and related new and additional termsand conditions, the success of new services and businesses and thepace of their implementation, the company's ability to maintainfavorable client and retailer relationships, and the outcome andimpact of the pending shareholder class action and derivativelawsuits.