1. Albertsons – Breakthrough Value: Management Review 10/04/04 Engagement Terms Engagement Start DateApril 2004 Engagement End DateApril 2007 Engagement Duration (Mos.)36 Month of Engagement/%5 / 14% Start-Up Fee$500K BVS %8% Mos. Of Benefits Measurement24 Payment Cap$45M

2. Deployment Performance MetricBudgeted (To Date) Completed (To Date) Currently In Process Forecasted (Remainder of Engagement) # BB Projects Completed0001875 Avg. BB Proj. Cycle Time (Mos.)0/0004 Avg. BB Proj. ($K Annualized)2500610300 # BBs Completed Training000280 # BBs Certified Certification Requirements: # BBs / Projects Washed-Out0 / 0 Albertsons – Breakthrough Value: Management Review 10/04/04 Financial Performance No Change From Prior Report Based On Current Training Schedule – Using $300K @ 8 Proj./BB No Change From Prior Report Based On Current Training Schedule – Using $300K @ 8 Proj./BB

3. Albertsons BVS: Monthly Review for Oct. 4, 2004 – Talking Points Events Since Last Update: Leadership Sigma Lean Overview presentations completed in Chicago and Los Angeles for top 4 Leaders in all divisions Divisional Management Sigma Lean Overview presentations completed in Salt Lake City, Portland, Dallas-Fort Worth, Phoenix, Oakland, Orlando, and Philadelphia. Boston, Chicago, Fullerton, and Boise (2) remaining. Divisional Project Identification Workshops completed in DFW and Oakland. Philly and Boston this week, Chicago next week, then Fullerton. ABS Director of Six Sigma Finance (Louis Martin) hired and relocated to Boise. 2 ABS Financial Analysts hired, training completed (Boise) Kintana-based Project Tracking database software mods 80% complete, reporting capabilities demonstrated, Project Sponsor/BB training in development. IssueRisks/ImpactsAction PlanResults ABS HR -- Wave 1 BB Identification Delays/Reset Projects approved do not align w/ some newBB locations Modify charters to realign Accelerated Sponsor training in BB Div In progress ABS HR -- Lack of efficient HR support processes, W2+ Risk of future training schedule delays Implement shared financial model Plan front-end loaded schedule in ’05 Push class size to 27-30 In progress SSA/ABS --Support of Divisional Assessment activities Need to drive local Assessm’t activities to build momentum. Pull at ABS divisions SSA Assm’t team availability Sched. DFW, Chicago, NoCal, SoCal, Boston, Philly, FLA follow-on Detailed resource planning this week (GE, CS, Damon Waters) In progress Coverage for Div. Deployment Leader training SSA Exec trainer needed Conflict w/FSC &PS schedule May need to divert Assessment resourcesIn progress BB Six Sigma coaching support (Lean/Six Sigma) Lean/SS coverage – few crossover resources Plan for dual coverage/all regions Recommend Cross-training (MBBs, LMs) In progress Upcoming Events:. Complete Mgmt OV Training, Div. Assessments, Proj. Sponsor training for Wave 2 BB W1 FaStart Training _________Week of 9/13/04 BB W1 Week 1 Training _________Week of 9/27/04