KROGER TO INITIATE QUARTERLY CASH DIVIDEND
Company Reiterates Commitment to Debt Reduction and Stock Repurchases

CINCINNATI, OH, March 7, 2006 -- The Kroger Co. (NYSE: KR) announced today that its Board of Directors has adopted a dividend policy. Specifically, the Board declared the payment of a quarterly dividend of $0.065 per share to shareholders of record as of May 15, 2006 to be paid on June 1, 2006. The Board’s expectation is that dividends will continue to be paid on a quarterly basis. The Company reiterated its commitment to Kroger’s long-term financial strategy of using one-third of free cash flow for debt reduction and two-thirds for share repurchase and the payment of a cash dividend.

“Customer response to Kroger’s strategic plan has now made it appropriate to return value to our shareholders both through our current stock repurchase plan and, additionally, through the payment of a dividend. The Board’s approval of the dividend and continuation of the share repurchase program underscores its confidence in Kroger’s strategic plan,” said David B. Dillon, Kroger chairman and chief executive officer.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the third quarter of fiscal 2004, the Company operated (either directly or through its subsidiaries) 2,531 supermarkets and multi-department stores in 32 states under two dozen banners including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s, Fry’s, Fry’s Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly or through subsidiaries, franchise agreements, or operating agreements) 792 convenience stores, 439 fine jewelry stores, 520 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at www.thekrogerco.com.

This press release contains certain forward-looking statements about the future performance of the Company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by the words "expectation," "commitment," "objective," and "will." These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially. The Board's expectation that dividends will continue to be paid on a quarterly basis assumes that the Company's financial condition will permit the payment under Ohio law; that its operations will continue to generate sufficient cash flow to warrant the payment of a dividend and that market conditions and applicable laws and regulations make payment of a dividend appropriate. Any future dividend payments will depend upon the judgment of the Board, based upon the best interests of the Company, its shareholders and other constituents, and will be made only at the Board's discretion. The Board's objective of increasing the amount of the dividend is based on its current view of the business, and that objective could change in the event that the needs of the business change; if its ratio of net total debt to EBITDA is not maintained at an appropriate level to justify a dividend increase; or if market conditions or applicable laws or regulations make a dividend increase unwarranted. The Company's long-term strategy of using one-third of free cash flow for debt reduction and two-thirds for share repurchase and the payment of a dividend will depend on our ability to generate sales and to reduce costs and manage our gross margin, as well as our ability to manage our working capital. Please refer to Kroger's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.

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