News Release

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SUPERVALU INC. Announces $500 Million Senior Notes Offering

MINNEAPOLIS--(BUSINESS WIRE)--Apr. 30, 2009-- SUPERVALU INC. (NYSE:SVU) announced today its intention to offer, subject to market and other conditions, $500 million in aggregate principal amount of its Senior Notes due 2016 (the “Notes”). The Notes will be senior unsecured obligations and will rank equally with all of SUPERVALU’s other senior unsecured indebtedness.

SUPERVALU intends to use the net proceeds of the offering to fund all or a portion of the purchase price of its 7.875% Notes due August 1, 2009 (the “SUPERVALU 2009 Notes”), the 6.95% Notes due August 1, 2009 (the “Albertson’s 2009 Notes”) issued by its wholly owned subsidiary, New Albertson’s, Inc. (“New Albertson’s”), and the 8.35% Senior Notes due May 1, 2010 issued by New Albertson’s (the “Albertson’s 2010 Notes” and, together with the SUPERVALU 2009 Notes and the Albertson’s 2009 Notes, the “Target Notes”) that are tendered and accepted by SUPERVALU for purchase in its offer to purchase for cash (the “Offer”) up to $700 million aggregate principal amount of the Target Notes, which SUPERVALU commenced today, including the payment of accrued interest and any applicable early tender premium. Currently, $350 million aggregate principal amount of the SUPERVALU 2009 Notes, $350 million aggregate principal amount of the Albertson’s 2009 Notes and $275 million aggregate principal amount of the Albertson’s 2010 Notes are outstanding. To the extent that there are net proceeds remaining, or if the Offer is not consummated, SUPERVALU intends to use the net proceeds for general corporate purposes, including the repayment of debt, whether at maturity, through open market purchases, privately negotiated transactions or otherwise.

The offering of the Notes is not conditioned upon the successful consummation of the Offer. The Offer is conditioned upon, among other things, the successful completion of the Notes offering.

The closing of the sale of any Notes is subject to SUPERVALU’s acceptance of the final terms available for the Notes and customary closing conditions.

Credit Suisse Securities (USA) LLC, Banc of America Securities LLC, Citigroup Global Markets Inc. and RBS Securities Inc. are acting as joint book-running managers for the offering of the Notes, with J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC, U.S. Bancorp Investments, Inc. and The Williams Capital Group, L.P. acting as co-managers. A registration statement relating to the Notes has been filed with the Securities and Exchange Commission (SEC) and has become effective. Copies of the preliminary prospectus for the offering can be obtained, when available, from: Credit Suisse Securities (USA) LLC at 1-800-221-1037; Banc of America Securities LLC at 1-800-294-1322; Citigroup Global Markets Inc. at 1-877-858-5407; and RBS Securities Inc. at 1-866-884-2071.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Notes nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of the Notes is being made only by means of the prospectus.


SUPERVALU INC. is one of the largest companies in the U.S. grocery channel with estimated annual sales of $43 billion. SUPERVALU holds leading market share positions across the United States with its approximately 2,500 retail grocery locations, including nearly 900 in-store pharmacies. Through the company’s nationwide supply chain network, SUPERVALU provides distribution and related logistics support services to more than 2,500 independent retailers across the country. SUPERVALU has approximately 180,000 employees.


Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations or future operating results, statements as to the progress and expected benefits of the combination of the operations of Albertson’s, Inc. that were acquired in June 2006 with those of SUPERVALU, such as efficiencies, cost savings, synergies, market profile and financial strength, and the competitive ability and position of the combined company, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of economic and industry conditions, competition, food and drug safety issues, the integration of Albertsons operations, store expansion and remodeling, liquidity, labor relations issues, escalating costs of providing employee benefits, regulatory matters, self insurance, legal and administrative proceedings, information technology, security, severe weather, natural disasters and adverse climate changes and accounting matters and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.


Investors and Financial Media:
David Oliver, 952-828-4540
Steve Bloomquist, 952-828-4144