Safeway Limited
20 May 2010

ANNOUNCEMENT OF REVISED FORM OF GUARANTEES

SAFEWAY LIMITED

Announcement of technical revisions to the guarantees from Wm Morrison Supermarkets plc ("Morrisons") of the £200,000,000 6.125 per cent. Notes due 2018 (the "Standalone Notes") and the £150,000,000 6.50 per cent. Notes due 2014 and the £200,000,000 6.00 per cent. Notes due 2017 (together the "Programme Notes" and, together with the Standalone Notes, the "Notes") issued under the £1,000,000,000 Euro Medium Term Note Programme, in each case of Safeway Limited (formerly Safeway plc) ("Safeway").

Safeway hereby announces that Morrisons has revised the form of its guarantees of the obligations of Safeway under the Notes (the "Replacement Guarantees"). The original guarantees were set out in trust deeds dated 4 November 2004 which were supplemental to the original trust deeds constituting the Notes. The Replacement Guarantees are contained in trust deeds dated 20 May 2010 which are supplemental to the original trust deeds constituting the Notes.

The Replacement Guarantees have been given by Morrisons, and other amendments have been made, more fully to incorporate Morrisons into the documentation for the Notes. Neither the Replacement Guarantees nor the amendments have a material impact on the rights of the holders of the Notes.

References to Morrisons as guarantor have been added to, among other things, the covenants, the negative pledge and the events of default relating to the Notes. Following the giving of the Replacement Guarantees and the making of the amendments, Safeway remains as the issuer of the Notes.

Guarantor

Wm Morrison Supermarkets plc

Hilmore House

Gain Lane
Bradford

West Yorkshire BD3 7DL

Tel: +44 (0) 0845 611 5772

Attn: Paul Coyle