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Supermarket Employees Ratify New Three-Year Contract in Southern California

                 Ralphs Plans to Recall Its Workers This Week

    LOS ANGELES, Feb. 29 /PRNewswire/ -- Ralphs today announced that it has
been notified by the United Food and Commercial Workers (UFCW) union that a
new labor contract covering 70,000 supermarket associates in Southern
California has been ratified by union members, ending a 141-day work stoppage.
    The new three-year agreement covers more than 19,000 Ralphs associates in
300 stores in Southern California.  Ralphs plans to recall its associates this
week.  Also covered under the new agreement are associates from Vons and
Albertsons in Southern California.  The workers were represented by UFCW Local
135, Local 324, Local 770, Local 1036, Local 1167, Local 1428 and Local 1442
in the contract negotiations.
    Under the new agreement, Ralphs associates will continue to receive very
competitive wages and benefits. The agreement also allows Ralphs to manage its
overall costs by addressing soaring health care costs and competitive issues
the Company faces.
    "These were complex and difficult negotiations, which required creativity
and tough choices on both sides," said John Burgon, Ralphs president.  "We are
pleased to have a new contract in place that balances our associates' need for
competitive wages, health care benefits and pension with our Company's need to
address the significant economic and competitive threats facing our business.
The strike has been difficult for everyone involved -- our associates, our
customers and our Company. We are pleased that it is finally over and even
more pleased to be able to welcome our associates back to work. We look
forward to seeing our associates back where they belong-- at work, earning a
paycheck and providing superior service to our customers."
    Burgon also offered his gratitude for the assistance provided by U.S.
Federal Mediation and Conciliation Service Director Peter J. Hurtgen in the
negotiations.
    Ralphs Grocery Company was founded in 1873 and currently operates more
than 340 supermarkets under the Ralphs, Bell Markets and Cala Foods banners in
California, from its headquarters in Los Angeles.  The company is a division
of The Kroger Co., (NYSE: KR), one of the nation's largest food retailers,
based in Cincinnati, Ohio. For more information about Ralphs, please visit our
web site at http://www.ralphs.com.


SOURCE Ralphs Grocery Company




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    CONTACT:
    Terry O'Neil of Ralphs, +1-310-884-4680