Safeway (SWY)

Item 1. Legal Proceedings

Note K to the Company’s consolidated financial statements, under the caption “Legal Matters” in the 2005 Annual Report on Form 10-K, provides information on certain litigation in which the Company is involved. There have been no material developments to these matters, except as noted in subsequent filings and except as described below.

With respect to the case entitled State of California, ex rel. Bill Lockyer v. Safeway Inc. dba Vons, et al., the hearing on the Attorney General’s motion seeking summary judgment on the grounds that the Mutual Strike Assistance Agreement constitutes a per se violation of the Sherman Act, which defendants have opposed, is now set for October 23, 2006. The court has set a trial date of August 21, 2007.

Item 1. Legal Proceedings

Note K to the Company’s consolidated financial statements, under the caption “Legal Matters” in the 2005 Annual Report on Form 10-K, provides information on certain litigation in which the Company is involved. There have been no material developments to these matters, except as noted in subsequent filings and except as described below.

With respect to claims arising from the July 1988 fire at the Company’s dry grocery warehouse in Richmond, California, as of July 20, 2006, there are no longer any pending claims. The last of the remaining claims have been dismissed.

With respect to the case entitled State of California, ex rel. Bill Lockyer v. Safeway Inc. dba Vons, et al., on July 17, 2006 the Attorney General filed a motion seeking summary judgment on the grounds that the Mutual Strike Assistance Agreement constitutes a per se violation of the Sherman Act. The defendants have opposed the motion and a hearing is scheduled for August 21, 2006.

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SAFEWAY INC. AND SUBSIDIARIES

Item 3. Legal Proceedings

Information about legal proceedings appears under the captions “Legal Matters” and “Furr’s and Homeland Lease Liabilities” as reported in Note K to the consolidated financial statements set forth in Part II, Item 8 of this report.

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SAFEWAY INC. AND SUBSIDIARIES

Item 1. Legal Proceedings

Note L to the Company’s consolidated financial statements, under the caption “Legal Matters” on page 49 of the 2004 Annual Report to Stockholders (filed as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended January 1, 2005), provides information on certain litigation in which the Company is involved. There have been no material developments to these matters, except as noted in subsequent filings, and except as described below.

With respect to claims arising from the July 1988 fire at the Company’s dry grocery warehouse in Richmond, California, as of October 1, 2005, there were pending approximately 200 claims against the Company for personal injury (including punitive damages) (down from 600 claims as of March 1, 2005), and no separate active claims for property damage (down from 290 claims as of March 1, 2005). Safeway continues to believe that coverage under its insurance policy will be sufficient and available for resolution of all remaining personal injury claims (with the exception of punitive damages, if any) arising out of the fire.

With respect to the four shareholder derivative lawsuits consolidated into the action entitled In re Safeway Inc. Derivative Litigation, on September 8, 2005, the judgment became final. The matter is now over.

Item 1. Legal Proceedings

Note L to the Company’s consolidated financial statements, under the caption “Legal Matters” on page 49 of the 2004 Annual Report to Stockholders, provides information on certain litigation in which the Company is involved. There have been no material developments to these matters, except as noted in subsequent filings, and except as described below.

With respect to the lawsuit entitled Baker, et al. v. Jewel Food Stores, Inc., et al., the Illinois Supreme Court denied plaintiffs’ petition for leave to appeal on May 25, 2005. The matter is now over.

With respect to the four shareholder derivative lawsuits consolidated into the action entitled In re Safeway Inc. Derivative Litigation, on June 22, 2005, the court approved the parties’ Stipulation of Settlement, which incorporated their Memorandum of Understanding. In the Memorandum of Understanding, the Company agreed to implement or maintain certain corporate governance practices. At the same time, the court dismissed all claims in the action, and entered final judgment.

With respect to the lawsuit entitled State of California ex rel. Bill Lockyer v. Safeway Inc. dba Vons, et al., on May 25, 2005, the court denied defendants’ motion for summary judgment based on the non-statutory labor exemption to the antitrust laws. On or about June 22, 2005, defendants filed appeals with the U.S. Court of Appeals for the Ninth Circuit.

Item 1. Legal Proceedings

Note L to the Company’s consolidated financial statements, under the caption “Legal Matters” on page 49 of the 2004 Annual Report to Stockholders, provides information on certain litigation in which the Company is involved. There have been no material developments to these matters.

Item 3. Legal Proceedings

Information about legal proceedings appearing under the captions “Legal Matters” and “Furr’s and Homeland Charge” as reported in Note L to the consolidated financial statements on pages 49 and 50 of the Company’s 2004 Annual Report to Stockholders is incorporated herein by this reference.