Safeway Inc. Board of Directors Declares Quarterly Dividend and Increases Stock Repurchase Authorization by $1.0 Billion

PLEASANTON, CA--(Marketwire -03/19/12)- Safeway Inc. (NYSE: SWY - News) announced that its Board of Directors met on Friday, March 16, 2012 and declared a regular quarterly cash dividend of $0.145 per share. The cash dividend will be payable on April 12, 2012 to stockholders of record at the close of business on March 22, 2012.

Safeway's Board of Directors also increased the authorized level of the company's stock repurchase program by $1.0 billion. Through February 22, 2012, Safeway had approximately $0.4 billion remaining under its stock repurchase program.

Safeway's stock repurchase authorization does not have an expiration date, and the timing and volume of future repurchases will depend on factors such as the company's day-to-day business needs as well as its stock price and economic and market conditions. Stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. The stock repurchase program may be accelerated, suspended, delayed or discontinued at any time.

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 1,678 stores in the United States and western Canada and had annual sales of $43.6 billion in 2011.