Safeway Announces 30 Finalists in Third Annual Lucerne(R) The Art of Dairy(TM) Contest

Safeway Inc. (NYSE:SWY) announced today the names of 30 students selected as finalists to compete for a $30,000 grand prize in the Lucerne® The Art of Dairy™ "Cows & History” Art Contest. The popular contest joins thousands of students and classrooms from across the country in a special educational project to promote artistic creativity, academic excellence and healthy lifestyles. "Safeway has long been a major supporter of education and student achievement. This program combines the richness of American history with the creativity of visual art,” said Safeway Executive Vice President Larree Renda. "We continue to be impressed with the extraordinary talent of these young artists.” Using cows as the focal point to promote dairy products as healthy snack alternatives for kids, Safeway, the maker of Lucerne® dairy products, asked students ages 12 to 19 to submit designs based on the theme "Cows & History,” using an outline of a cow as the canvas. Entries were accepted from mid-October 2007 to December 10, 2007. The contest drew entries from all over the country with nearly 6,000 middle school and high school students from as far away as Maryland and Hawaii submitting entries. A distinguished panel of judges will choose the final winner. Safeway is proud to include renowned graphic artist Michael Schwab, as well as Mary Scott, Chair of the School of Graphic Design at the Academy of Art University, to participate on judging the panel. The 30 finalists will transfer their designs to life-sized fiberglass cow sculptures in the final phase of the competition. Each school receives a $250 stipend to purchase the art supplies that their student finalist uses to decorate the cow sculpture. The grand prize winner will receive $20,000 for their school's art department, plus $5,000 each for the winner and their art teacher. The completed decorated cows will be on display at a Safeway or Safeway-owned store near the finalists' schools during the final judging phase. During this time, the panel of distinguished judges will review the entries to pick a winner of the grand prize. The grand prize winner will be announced at the end of April. A special web site, www.safeway.com/lucerne, has been created to showcase past winners and contest information and share healthy recipes. Safeway has long recognized the critically important role that education plays in building strong communities and ensuring their future growth. Each year Safeway provides more than $23 million in financial support to schools and education programs through its eScrip program, such as The Art of Dairy other education initiatives. The eScrip program allows shoppers to raise money for schools simply by making purchases. Safeway donates a percentage of each shopping trip directly to their chosen school. ABOUT SAFEWAY 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 1,738 stores in the United States and western Canada and had annual sales of $40.2 billion in 2006. Safeway supports a broad range of charitable and community programs and last year donated more than $172 million, the equivalent of 20% of its 2006 net income, to important causes, such as cancer research, education, food banks and programs focused on assisting people with disabilities. The company's common stock is traded on the New York Stock Exchange under the symbol SWY. Lucerne® "The Art of Dairy"™ Contest Finalists State Student's Name   School   School City AZ Sylvia Overmyer   Prescott High School   Prescott AZ Heather Johnson   Buena High School   Sierra Vista CA Aubrey Williams   Monte Vista High School   Danville CA Brian Collazo   Santa Clara High School   Santa Clara CA Diana Nguyen   Evergreen Valley High School   San Jose CA Cynthia Mora   Weber Institute   Stockton CA Nicholas Ross   Mater Dei High School   Santa Ana CA Ivy Hu   Whitney High School   Cerritos CA John Taing   John Marshall High School   Los Angeles CA Stacey M. Smith   Boron Jr./ Sr. High School   Boron CA Brittney Dreher-Metts   Warren High School   Downey CA Kimberly Tang   Temple City High School   Temple City CO Sophia Sweeney   Boulder High School   Boulder CO Carole A. Smith   Montbello High School   Denver CO Name Withheld         HI Nicole Lee   Moanalua High School   Honolulu ID Morgan Asplund   Jenifer Junior High School   Lewiston IL Thomas J. Hirsch   Glenbard South High School   Glen Ellyn IL Mercedes Zapata   De La Salle Institute   Chicago MD Matt Weichseldorfer   C. Milton Wright High School   Bel Air OR Kierstin Marie Barlow   Cascade Christian High School   Medford OR Jessica Wall   Aloha High School   Beaverton PA Jing Jing Wu   Northeast High School   Philadelphia TX Thomas Conway   The Woodlands High School   The Woodlands TX Arturo Lee   The Woodlands High School   The Woodlands TX Jennifer Cho   Summit High School   Arlington VA Songserea Wood   TC Williams High School   Alexandria WA Rathanak Rath   Evergreen High School   Seattle WA Diana Nguyen   Evergreen High School   Seattle WA Jeayoung Yoo   Shadle Park High School   Spokane