Delhaize Group (EBR:DELB) Announces Strong Year-End Sales Leading To 10.3% Revenue Growth In The 4th Quarter Of 2008

Delhaize Group (EBR:DELB) Full Year 2008 Revenues:

* Strong revenue growth of +5.6% at identical exchange rates including the 53rd week in the U.S. * Revenues in upper-end of guidance range of +3.0% to +4.5% with +3.9% revenue growth at identical exchange rates excluding 53rd week and acquisitions * Comparable store sales growth of +2.5% in the U.S. and +2.2% in Belgium * Confirmation of 2008 guidance of flat to 3% operating profit growth at identical exchange rates (excl. charges for Sweetbay impairment and store closings, and the four-store German divestiture)

Fourth Quarter 2008 Revenues:

* Revenue growth of +10.3% at identical exchange rates including the 53rd week and +4.4% excluding the 53rd week * Continued solid comparable store sales growth of +2.9% in the U.S. and +2.7% in Belgium, with particularly strong year-end sales in all companies

Solid Plans to Support 2009 Revenues, Profitability and Cash Flows:

* Strong cash generation through actions which positively impact our cost structure by EUR 100 million and EUR 50 million working capital improvements * Important opening program of 71 to 81 stores to a total of 2,744 to 2,754 stores at the end of 2009 * Planned capital expenditures of EUR 600 to EUR 620 million * Thorough review of portfolio leading to closing of seven underperforming Sweetbay stores and planned divestiture of four German stores resulting in EUR 7 million higher operating profit on an annualized basis and fourth quarter 2008 store closing and impairment after-tax charge of EUR 27.5 million (of which EUR 20.4 million non cash)

CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group: "During the fourth quarter, all of our U.S. operations continued good revenue momentum. Year-end sales in particular were strong and the trend in number of transactions turned positive again when compared to the two previous quarters. Indeed, while the U.S. consumer remained prudent, we responded with many sales building initiatives such as our private brand roll-out and strong holiday merchandising and promotions, which resulted in good revenue dynamics. Delhaize Belgium's revenues grew in the fourth quarter as a result of increased customer traffic and a continuing improving market share trend. Greece benefited from the conversion of the acquired Plus Hellas stores to the Alfa-Beta banner. As a result of the solid fourth quarter revenues, gross margin supported by higher private label sales and continued cost management, we confirm our 2008 earnings guidance."

"Despite the uncertain economic environment, we are confident that our many initiatives will continue to deliver benefits in 2009. Special attention will be given to our private brand offering and price competitiveness. To support our revenue growth, our profitability and our cash flows, we have planned a series of actions which will positively impact in 2009 our cost structure by EUR 100 million. We also plan to partly reinvest a portion of those savings in price. In addition, we plan to exercise discipline by reducing capital expenditures and by generating EUR 50 million working capital improvements. Our decision to close a number of Sweetbay stores and to divest our four German stores will have a positive effect on our ongoing profitability. All of these initiatives should position Delhaize Group to come out of these difficult economic times as an even stronger company."

CONTACTS: Guy Elewaut: + 32 2 412 29 48 Geert Verellen: + 32 2 412 83 62 Aurélie Bultynck: + 32 2 412 83 61 Amy Shue (U.S. investors):+ 1 704 633 82 50 (ext. 2529) Barbera Hoppenbrouwers (media): +32 2 412 86 69

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LINK: http://hugin.info/133961/R/1282680/287008.pdf

Delhaize Group

http://www.delhaizegroup.com

ISIN: BE0003562700

Stock Identifier: XBRU.DELB

US: DEG:NYSE