Safeway Announces Finalists in Fifth Annual Lucerne® The Art of Dairy™ Contest

Safeway Inc. (NYSE:SWY) and its exclusive Lucerne^® brand of dairy products today announced the names of 30 students selected as finalists to compete for a $30,000 grand prize in the Lucerne^® The Art of Dairy^™ "Taste of Moo-sic^™” Art Contest. The contest joins thousands of students and classrooms from across the country in a special project to promote artistic creativity, academic excellence and healthy lifestyles.

To promote dairy products as healthy snack alternatives for kids, Safeway and Lucerne^® asked high school students in grades 9 to 12 to submit designs using an outline of a cow as the canvas. In its initial years, the contest centered on a "Cows in History” theme, where entrants used historical events as their inspiration. This year marks the second time that entrants were asked to translate the art of music into visual art. Students from as far away as Alaska and Hawaii stepped up to the challenge and visualized a range of music genres, performances and events, from Pied Piper cows to a bovine rhythm and blues band. More than 9,600 students submitted entries, the highest participation since the contest began in 2006. Entries were accepted from September 1 to November 3, 2009.

Including this year’s prizes, Safeway has awarded more than $266,000 in prize money and funds for art supplies through The Art of Dairy^™ Art Contest.

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 First Prize winner receives $5,000 for their school’s art department, plus $2,500 each for the student and teacher. In addition, three Honorable Achievement winners and their teachers receive $1,000 each. The remaining 25 finalists will receive $500 U.S. Savings Bonds, bringing the total prize pool for the winners and finalists to nearly $60,000.

Once completed, the 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 select a winners. This year’s judges include some of the most respected names in art and music. Safeway and Lucerne^® are proud to welcome back Mary Scott, Chair of the Academy of Art University San Francisco’s School of Graphic Design, as a special judge. She joins first-time judge Donato Cabrero, Assistant Conductor of the San Francisco Symphony, and a team of Safeway marketing and Lucerne brand development professionals on the judging panel.

The grand prize winner will be announced in early May. A special web site, www.safeway.com/lucerne, has been created to showcase past winners and contest information and share healthy recipes.

About Safeway www.Safeway.com

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,725 stores in the United States and western Canada and had annual sales of $40.8 billion in 2009. The company’s common stock is traded on the New York Stock Exchange under the symbol SWY. Safeway supports a broad range of charitable and community programs and in 2009 donated more than $250 million to important causes, such as cancer research, education and hunger relief.