SOURCE: Delhaize Group

March 15, 2007 03:00 ET

NET PROFIT FROM CONTINUING OPERATIONS INCREASES BY 12% TO EUR 426 MILLION IN 2006

BRUSSELS, BELGIUM -- (MARKET WIRE) -- March 15, 2007 --


Financial Highlights 2006 Results

* Accelerating sales growth: +5.5% at identical exchange rates

* Strong comparable store sales growth in the U.S. (+2.7%) and in Belgium (+2.8%)

* Excellent full year results at Alfa-Beta in Greece with 13.5% sales growth

* Operating margin of 4.9%

* Net profit from continuing operations: +12.1% to EUR 425.6 million

Financial Highlights Fourth Quarter 2006 Results

* Sales growth: +4.6% at identical exchange rates

* Strong comparable store sales growth in the U.S. (+2.2%) and in Belgium (+3.4%)

* Excellent operating margin of 5.4%

* Operating profit: +4.8% at identical exchange rates

Other Highlights

* Proposal to increase net dividend by 10.0% to EUR 0.99 per share

* Agreement to sell Belgian beauty and body care business Di

* Planned implementation of cross-guarantees between Delhaize Group SA and Delhaize America Inc

* 2007 guidance: continued solid sales growth and accelerating operating profit growth

Pdf-version press release

http://hugin.info/133961/R/1111999/202060.pdf

Results Delhaize America

http://hugin.info/133961/R/1111999/202063.pdf

CEO Comments

"Delhaize Group had an excellent year in 2006," said Pierre- Olivier Beckers, President and Chief Executive Officer of Delhaize Group. "Our 2006 sales and profits are at the top of our expectations. Sustainable sales momentum at our key banners is the reflection that our strategy is bearing fruit. Disciplined cost management allowed us to retain our strong operating margins."

"Our teams continue to implement new initiatives aimed at driving a sales-led culture and pursuing our differentiation strategy, from product and concept innovation to major remodeling activity to an accelerating store opening program", added Mr. Beckers. "Our investments in systems, processes and supply chain, and our continued pursuit of executional excellence will support this commitment 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
Amy Shue: + 1 704 633 82 50 (ext. 2529)
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