SUPERVALU Reports Record Sales and Earnings for Fourth Quarter and Fiscal 2008

Achieves Second Consecutive Year of Double Digit Earnings Per
Share Growth Following Its Transformational Acquisition

Affirms Fiscal 2009 Guidance
MINNEAPOLIS--(Business Wire)--
SUPERVALU INC. (NYSE: SVU) today reported record sales and
earnings for the fourth quarter of fiscal 2008. The company reported
record fourth quarter net sales of $10.4 billion compared to $10.3
billion last year, record net earnings of $156 million, an increase of
30 percent compared to $120 million last year, and record diluted
earnings per share of $0.73, an increase of 28 percent compared to
$0.57 last year. Fourth quarter fiscal 2008 and fourth quarter fiscal
2007 results included after-tax charges for one-time
acquisition-related costs of $9 million and $11 million, respectively,
or $0.04 and $0.05 per diluted share, respectively. Fourth quarter
diluted earnings per share increased 5 percent to $0.77 compared to
$0.73 last year when adjusting for one-time acquisition-related costs
in both years and non-cash charges of $23 million after-tax, or $0.11
per diluted share in fiscal 2007 related to the sale of Scott's Food
and Pharmacy.

For fiscal 2008, the company reported record net sales of $44.0
billion, an increase of 18 percent compared to $37.4 billion last
year, record net earnings of $593 million, an increase of 31 percent
compared to $452 million last year, and record diluted earnings per
share of $2.76, an increase of 19 percent compared to $2.32 last year.
Fiscal 2008 and fiscal 2007 results included after-tax charges for
one-time acquisition-related costs of $45 million and $40 million,
respectively, or $0.21 and $0.20 per diluted share, respectively. Full
year diluted earnings per share increased 13 percent to $2.97 compared
to $2.64 last year when adjusting for one-time acquisition-related
costs in both years and non-cash charges of $23 million after-tax or
$0.12 per diluted share in fiscal 2007 related to the sale of Scott's
Food and Pharmacy. Fiscal 2008 results include 52 weeks of the
acquired operations compared to 38 weeks last year as a result of the
June 2, 2006 acquisition of Albertson's, Inc. ("Albertsons") premier
retail properties.

Jeff Noddle, SUPERVALU chairman and chief executive officer said,
"In fiscal 2008, we achieved many important milestones, including
record net sales and earnings, $40 million in pretax synergies and a
second year of double-digit diluted earnings per share growth
following our transformational acquisition. Looking to fiscal 2009, we
remain focused on our integration initiatives, including the
implementation of key merchandising programs and the continued
roll-out of our Premium, Fresh and Healthy remodel program. We are
confident the steps we are taking in fiscal 2009 position us well to
maximize the future potential of the company."

Fourth Quarter Results

Fourth quarter retail net sales were $8.1 billion compared to $8.2
billion last year, primarily reflecting the impact of store closures
in the acquired operations combined with flat identical store sales.
Retail square footage decreased 2.5 percent from the fourth quarter of
fiscal 2007 with the previously announced closure of underperforming
stores which more than offset new store square footage. When excluding
store closures, total retail square footage increased 2.3 percent over
the fourth quarter of fiscal 2007.

Fourth quarter supply chain services net sales were $2.3 billion
compared to $2.1 billion last year, an increase of 7.2 percent,
primarily reflecting new business growth and lower than normal
customer attrition.

The company's business segment mix changed slightly in the fourth
quarter this year compared to last year. Retail net sales in the
fourth quarter represented 78 percent of total net sales compared to
79 percent last year. Supply chain services net sales increased to 22
percent compared to 21 percent last year.

Gross profit margin in the fourth quarter decreased as a percent
of net sales 20 basis points to 23.3 percent. When adjusting for the
30 basis point impact from the business segment mix change, gross
profit margin increased by 10 basis points.

Selling and administrative expenses in the fourth quarter as a
percent of net sales decreased 50 basis points to 19.3 percent. When
adjusting for the 30 basis point impact from the business segment mix
change, selling and administrative expenses decreased 20 basis points
primarily reflecting lower depreciation expense as well as cycling the
prior year charge related to the sale of Scott's Food and Pharmacy.

Reported operating earnings for the fourth quarter were a record
$417 million, or 4.0 percent of sales compared to $379 million, or 3.7
percent of sales last year. Retail food operating earnings were a
record $374 million, or 4.6 percent of sales, compared with $363
million, or 4.5 percent of sales last year. Supply chain services
operating earnings were a record $75 million, or 3.3 percent of sales,
compared with $55 million, or 2.6 percent of sales last year.

Net interest expense for the fourth quarter was $157 million
compared to $173 million last year reflecting lower borrowing levels
and interest rates.

SUPERVALU's effective tax rate for the fourth quarter was 40.0
percent in contrast to the 41.9 percent rate in the fourth quarter
last year. Excluding the impact in both years of goodwill write-offs
in connection with the disposal of assets, the annual effective tax
rates for fiscal 2008 and fiscal 2007 were 39.0 percent and 38.6
percent, respectively.

Capital spending for fiscal 2008 was $1.3 billion, including the
in-market acquisition of eight stores in Wyoming and approximately $36
million in capital leases. In fiscal 2008, the company completed 141
major remodels, 25 minor remodels and 27 new stores. Capital spending
primarily included new retail stores, store remodeling activity and
technology expenditures.

Total debt to capital was 60 percent at the end of fiscal 2008
compared to 64 percent at fiscal 2007 year-end. The total debt to
capital ratio is calculated as total debt, which includes current and
long-term debt and obligations under capital leases, divided by the
sum of total debt and total stockholders' equity.

Commenting on debt reduction Noddle added, "Our strong cash flow
management has enabled us to significantly reduce debt, beating our
goal of $400 million by June 2008. In fact since the acquisition we
have achieved $698 million in debt reduction, due in part to lower
cash tax payments related to the Albertsons transaction. We are again
committing to an additional $400 million reduction for fiscal 2009."

Diluted weighted-average shares outstanding for the fourth quarter
were 213 million shares compared to 211 million shares last year. As
of February 23, 2008, SUPERVALU had 212 million shares outstanding.

Fiscal 2009 Guidance

The company affirmed its fiscal 2009 earnings guidance range of
$3.06 to $3.22 per diluted share on a GAAP basis and $3.10 to $3.25 on
an adjusted basis when excluding one-time acquisition-related costs.

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*T
Diluted Earnings Per Share Summary
Fiscal 2009 Fiscal 2008
Guidance Actual
----------------------------------------------------------------------
Diluted earnings per share on a $3.06 to $3.22
GAAP basis $2.76
One-time acquisition-related costs $0.04 to $0.03 $0.21
----------------------------------------------------------------------
Diluted earnings per share before $3.10 to $3.25
one-time costs $2.97
Weighted-average diluted shares 215 to 217
outstanding (millions) 215
*T

SUPERVALU's fiscal 2009 guidance includes the following
assumptions:

-- Net sales are estimated to be approximately $45.0 to $45.5
billion, including an approximate benefit of $800 million from
the 53rd week in the fiscal year;

-- Diluted earnings per share will benefit approximately $0.06
from the 53rd week;

-- Identical store sales growth, excluding fuel, is projected to
be in the range of 1 to 2 percent;

-- Sales attrition in the traditional food distribution business
will be approximately 2 to 4 percent for the year. This rate
is exclusive of new business and the multi-year migration of
Target Corporation volume to self distribution;

-- Consumer spending will continue to be pressured by inflation
and the economy;

-- Capital spending is projected to be approximately $1.3
billion, which will include 165 major store remodels,
approximately 15 new traditional supermarkets and 55 to 65
limited assortment stores, including 30 licensed stores;

-- Debt reduction is estimated to be $400 million;

-- Incremental synergy benefits in fiscal 2009, relating to the
Albertsons acquisition, are estimated to be approximately $40
to $50 million pre-tax;

-- One-time acquisition-related costs are expected to be
approximately $11 to $16 million pre-tax in fiscal 2009; and

-- The effective tax rate is estimated to be approximately 39
percent.

A conference call to review the fourth quarter and year results is
scheduled for today at 9:00 a.m. (CDT). A live Web cast of the call
will be available at http://investor.supervalu.com. An archive of the
call is accessible via telephone by dialing (706) 645-9291 with
passcode 42840114 and through the company's Web site at
www.supervalu.com. The conference call archive will be available
through May 8, 2008.

About SUPERVALU INC

SUPERVALU INC. is one of the largest companies in the United
States grocery channel with estimated annual sales of $44 billion.
SUPERVALU holds leading market share positions across the U.S. with
its approximately 2,475 retail grocery locations. Through SUPERVALU's
nationwide supply chain network, the company provides distribution and
related logistics support services to more than 5,000 grocery
endpoints across the country. SUPERVALU currently has approximately
192,000 employees. For more information about SUPERVALU visit
www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR
THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995

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, security and 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 continued
provision of transition support services 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.

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SUPERVALU INC. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)

Fiscal Quarter Ended Fiscal Quarter Ended
(In millions, except per February 23, % of February 24, % of
share data) 2008 sales 2007 sales
----------------------------------------------------------------------

Net sales $ 10,386 100.0% $ 10,300 100.0%
Cost of sales 7,967 76.7% 7,875 76.5%
----------------------------------------------------------------------
Gross profit 2,419 23.3% 2,425 23.5%

Selling, general and
administrative expenses 2,002 19.3% 2,046 19.8%
----------------------------------------------------------------------
Operating earnings 417 4.0% 379 3.7%

Interest expense, net 157 1.5% 173 1.7%
----------------------------------------------------------------------
Earnings before income
taxes 260 2.5% 206 2.0%
Income tax expense 104 1.0% 86 0.8%
----------------------------------------------------------------------

Net earnings $ 156 1.5% $ 120 1.2%
======================================================================

Net earnings per common
share
Basic $ 0.74 $ 0.57
Diluted $ 0.73 $ 0.57
Weighted average common
shares outstanding
Basic 212 208
Diluted 213 211
*T

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SUPERVALU INC. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)

Fiscal Year-to-Date Fiscal Year-to-Date
Ended Ended
(In millions, except per share February 23, % of February 24, % of
data) 2008 sales 2007 sales
----------------------------------------------------------------------

Net sales $ 44,048 100.0% $37,406 100.0%
Cost of sales 33,943 77.1% 29,267 78.2%
----------------------------------------------------------------------
Gross profit 10,105 22.9% 8,139 21.8%

Selling, general and
administrative expenses 8,421 19.1% 6,834 18.3%
----------------------------------------------------------------------
Operating earnings 1,684 3.8% 1,305 3.5%

Interest expense, net 707 1.6% 558 1.5%
----------------------------------------------------------------------
Earnings before income taxes 977 2.2% 747 2.0%
Income tax expense 384 0.9% 295 0.8%
----------------------------------------------------------------------

Net earnings $ 593 1.3% $ 452 1.2%
======================================================================

Net earnings per common share
Basic $ 2.80 $ 2.38
Diluted $ 2.76 $ 2.32
Weighted average common shares
outstanding
Basic 211 189
Diluted 215 196
*T

Note: SUPERVALU's fiscal 2008 year ended February 23, 2008
includes 52 weeks of combined results compared to year ended fiscal
2007 which included 38 weeks of acquired operations.

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SUPERVALU INC. and Subsidiaries
CONSOLIDATED COMPOSITION OF NET SALES AND OPERATING EARNINGS
(unaudited)

Fiscal Quarter Fiscal Quarter
Ended Ended
(In millions, except per share February 23, 2008 February 24, 2007
data)
----------------------------------------------------------------------

Net sales
Retail food and drug $ 8,083 $ 8,152
78% 79%
Supply chain services 2,303 2,148
22% 21%
----------------------------------------------------------------------
Total net sales $10,386 $10,300
100.0% 100.0%
======================================================================

Operating earnings
Retail food and drug operating
earnings $ 374 $ 363
Supply chain services operating
earnings 75 55
General corporate expenses 32 39
----------------------------------------------------------------------
Total operating earnings 417 379
Interest expense, net 157 173
----------------------------------------------------------------------
Earnings before income taxes $ 260 $ 206
Income tax expense 104 86
----------------------------------------------------------------------
Net earnings $ 156 $ 120
======================================================================

LIFO charge $ 4 $ -

Depreciation and amortization
Retail food and drug $ 208 $ 233
Supply chain services 22 22
----------------------------------------------------------------------
Total $ 230 $ 255
======================================================================
*T

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SUPERVALU INC. and Subsidiaries
CONSOLIDATED COMPOSITION OF NET SALES AND OPERATING EARNINGS
(unaudited)

Fiscal Year-to-Date Fiscal Year-to-Date
Ended Ended
(In millions, except per share February 23, 2008 February 24, 2007
data)
----------------------------------------------------------------------

Net sales
Retail food and drug $34,341 $28,016
78% 75%
Supply chain services 9,707 9,390
22% 25%
----------------------------------------------------------------------
Total net sales $44,048 $37,406
100.0% 100.0%
======================================================================

Operating earnings
Retail food and drug
operating earnings $ 1,550 $ 1,179
Supply chain services
operating earnings 274 257
General corporate expenses 140 131
----------------------------------------------------------------------
Total operating earnings 1,684 1,305
Interest expense, net 707 558
----------------------------------------------------------------------
Earnings before income
taxes $ 977 $ 747
Income tax expense 384 295
----------------------------------------------------------------------
Net earnings $ 593 $ 452
======================================================================

LIFO charge $ 30 $ 18

Depreciation and amortization
Retail food and drug $ 922 $ 783
Supply chain services 95 96
----------------------------------------------------------------------
Total depreciation and
amortization $ 1,017 $ 879
======================================================================
*T

Note: SUPERVALU's fiscal 2008 year ended February 23, 2008
includes 52 weeks of combined results compared to year ended fiscal
2007 which included 38 weeks of acquired operations.

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SUPERVALU INC. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(unaudited)
February 23, February 24,
2008 2007
----------------------------------------------------------------------

ASSETS
Current assets
Cash and cash equivalents $ 243 $ 285
Accounts and notes receivable, net 951 957
Inventories 2,776 2,749
Prepaid and other current assets 177 469
----------------------------------------------------------------------
Total current assets 4,147 4,460

Land, buildings, leasehold improvements and
equipment, net 7,533 8,415

Goodwill 6,957 5,921

Intangibles, net 1,952 2,450

Other assets 473 456
----------------------------------------------------------------------

Total assets $21,062 $21,702
======================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 3,354 $ 3,548
Current maturities of long-term debt and
capital lease obligations 331 286
Other current liabilities 922 871
----------------------------------------------------------------------
Total current liabilities 4,607 4,705

Long-term debt and obligations under capital
leases 8,502 9,192

Other long-term liabilities and deferred
credits 2,000 2,499

Total stockholder's equity 5,953 5,306

----------------------------------------------------------------------

Total liabilities and stockholders' equity $21,062 $21,702
======================================================================
*T

SUPERVALU INC.
Investors and Financial Media:
David Oliver, 952-828-4540
david.m.oliver@supervalu.com
or
Jean Giese, 952-828-4939
jean.giese@supervalu.com

Copyright Business Wire 2008