SUPERVALU to Remain in Northwest Region

MINNEAPOLIS, Aug 10, 2004 /PRNewswire-FirstCall via Comtex/ -- SUPERVALU INC. (NYSE: SVU) today confirmed that it will continue to operate its Tacoma, Wash., distribution facility in order to support its strong base of independent retailers and extensive military business served by the Tacoma location.

"The decision to remain in Tacoma comes after a thorough and disciplined evaluation and analysis undertaken as a result of the transition of the Haggen Foods business, which will occur in mid-October," said Jeff Noddle, SUPERVALU chairman and CEO. "We have assessed the marketplace and believe the opportunity exists for our distribution business to continue to grow in the region."

During the recent transition, the company has worked closely with its union partners; it recently settled contracts with employees in both Tacoma and Spokane. In addition, SUPERVALU plans to reconfigure and resize its Tacoma operation in order to enhance productivity and keep pace with the changing business environment.

"SUPERVALU remains committed to serving both new and existing customers in the Northwest, and to continuing to provide a vibrant business offering. We feel that the changes we have in process will positively position us for future growth," said Noddle.

SUPERVALU reaffirmed its earnings per share in the range of $2.75 to $2.90 for the fiscal year ending February 26, 2005. This range includes the $0.50 diluted earnings per share impact from the net after-tax gain on the sale of the company's minority interest in WinCo and $0.03 diluted earnings per share impact from the early retirement of debt, both of which occurred in the first quarter.