SOURCE: Delhaize Group

January 18, 2007 02:00 ET

DELHAIZE GROUP REPORTS FOURTH CONSECUTIVE YEAR OF ACCELERATING SALES GROWTH

BRUSSELS, BELGIUM -- (MARKET WIRE) -- January 18, 2007 --


Full Year 2006 Net Sales and Other Revenues:

* Net sales and other revenues of EUR 19.2 billion

* Sales growth of +5.5% at identical exchange rates compared to +4.1% in 2005

* Comparable store sales growth of +2.7% in the U.S and +2.6% in Belgium

Fourth Quarter 2006 Net Sales and Other Revenues:

* Sales growth of +4.6% at identical exchange rates

* Comparable store sales growth of +2.2% in the U.S and +2.7% in Belgium.

Pdf-version press release

http://hugin.info/133961/R/1098765/195791.pdf

CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group: "We are pleased that, in the fourth quarter of 2006, our operating companies were able to sustain the strong sales momentum of the first nine months of the year. Consequently, Delhaize Group sales growth for the full year came out at the top end of our expectations, and our 2006 performance marks the fourth consecutive year of accelerating sales momentum. We have been particularly pleased with the strong performances of Food Lion and Hannaford in the U.S., Delhaize Belgium and the outstanding sales level of Alfa-Beta, our Greek company. Our store opening program and other planned initiatives for 2007 leave us confident that we will continue our profitable growth in 2007."

FULL YEAR 2006 Sales

In 2006, Delhaize Group achieved net sales and other revenues of EUR 19.2 billion compared to EUR 18.3 billion the prior year, an increase of 4.8%. Net sales and other revenues grew by 5.5% at identical exchange rates, at the top end of the Company's guidance range of +4.5% to +5.5% for sales growth in 2006.

Organic sales growth of Delhaize Group amounted to 5.0% in 2006, due to:

* Strong sales momentum at Food Lion and Hannaford, resulting in a comparable store sales growth of 2.7% at the U.S. operations, non-adjusted for the negative calendar impact of 20 basis points due to an earlier cut-off of the fiscal year;

* Strong sales growth of 6.9% at Delhaize Belgium in 2006, leading to +2.6% comparable store sales growth; and

* Outstanding performance of Alfa-Beta in Greece with a sales growth of 13.5% in 2006.

The 2006 sales evolution was also impacted by the acquisition of Cash Fresh in Belgium in May 2005.

Delhaize Group ended 2006 with a sales network of 2,705 stores, a net increase of 69 stores compared to the previous year (including 97 Delvita stores in the Czech Republic to be sold in 2007).

Contacts:
Guy Elewaut: + 32 2 412 29 48
Geoffroy d'Oultremont: + 32 2 412 83 21
Hans Michiels: + 32 2 412 83 30
Ruth Kinzey (U.S. media): + 1 704 633 82 50 (ext. 2118)
Amy Shue (U.S. investors): + 1 704 633 82 50 (ext. 2529)

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