Safeway Inc. (NYSE:SWY) and Amicus FSB, a leading e-banking provider, today announce Safeway SELECT Bank, the result of a strategic alliance between the two companies.

The bank will be initially available in San Jose and Sacramento, California and in Denver, Colorado. Expansion into other western U.S. locations is also planned.

Safeway SELECT Bank is a unique day-to-day banking offer that provides the convenience of an on-line bank with an in-store presence. Customers benefit from no fees, great rates and free groceries.

"Safeway SELECT Bank extends Safeway's premium Safeway SELECT brand to a financial service," said Rick Dreiling, executive vice president, marketing and manufacturing at Safeway. "We built our premium private label brands by meeting and exceeding national brand quality and we intend to do the same with this offering," added Dreiling. "Safeway pioneered supermarket banking in the early 1980's, successfully providing a one-stop location to offer customers the convenience of banking while shopping for groceries. Safeway SELECT Bank now takes service to the next level and provides the added convenience of banking on-line at home or at the store with live customer service associates," added Dreiling.

"People want day-to-day banking that combines outstanding value with greater convenience," adds Gary Gray, president of Amicus FSB - Western Division. "And that's what we're bringing to customers with Safeway SELECT Bank."

Safeway SELECT Bank is an online bank with a twist. It offers all of the benefits and features of an Internet bank including no fees on day-to-day banking, outstanding rates and instant access 24 hours a day - seven days a week. But the Bank also has a physical presence inside Safeway stores where customers receive service from knowledgeable financial professionals, something lacking with pure-play online banks.

Safeway SELECT Bank has developed a full selection of financial products to help customers save time and money including:
  • A no fee checking account for day-to-day banking with:
    • no fees, no minimum balance, free unlimited transactions,

    • unlimited check writing, free unlimited use of Safeway SELECT ATM's,

    • free unlimited phone and Internet banking,

    • free use of an ATM card for purchases

    • higher interest paid on deposits.
  • Savings account that earns money market rates comparable to term deposits with no minimum balance and no administrative fees.

  • Easy lower-cost borrowing, whether customers choose a personal line of credit or a loan.

  • Savings Awards redeemable for free groceries at Safeway stores.

  • Advice from Safeway SELECT Bank Customer Associates about the features and services of Safeway SELECT Bank are available at the store seven days a week and over the phone 24 hours per day.

Safeway SELECT Bank provides safe and secure access to accounts with all products insured by the FDIC. Amicus FSB, a member of the Federal Deposit Insurance Corporation, will employ the in-store Customer Associates, supply all of the banking services and hold all deposits made by Safeway SELECT Bank customers.

"Our alliance with Safeway lets us offer electronic banking services to many new customers in the western United States," comments Brian Cassidy, CEO of Amicus. "The Amicus model has proven highly successful in other markets and now we're ready to introduce it to California and Colorado."

About Safeway Inc.

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,680 stores in the United States and Western Canada. Safeway currently offers 2,500 Safeway brand products and over 1,100 premium SELECT brand items.

About Amicus FSB

Safeway SELECT Bank is the result of a strategic alliance between Safeway and Amicus FSB. Amicus and its affiliates have formed alliances with a number of North American retailers to offer day-to-day banking that eliminates service fees and makes it easy for people to bank where they live, work or shop.

Notes to Editors: B-roll footage is available on Thursday, October 12 from 2:00 to 2:30 PM (PDT) at Telstar 5(Ku) transponder 25; Downlink Frequency - 12144.0 vertical. For technical details during the feed, please call the Access Center - Loral 800/631-3562.

Note to Editors: An archived webcast of the news conference can be accessed from Safeway SELECT Bank's home page at www.safewayselectbank.com.

Product Fact Sheet

Safeway SELECT Bank Products and Services

Safeway SELECT Bank offers its customers:
  • No fees on day-to-day banking

  • Higher interest on deposits

  • Easy low cost borrowing

  • Customer Associates available when you need them, 24 hours a day, seven days a week through a toll-free number

  • Plus face-to-face access to Customer Associates at in-store pavilions

  • Savings Awards redeemable for free groceries just for doing your banking
Safeway SELECT Bank follows the same principles of premium quality and superior value on which the Safeway SELECT brand is based. We offer a unique basket of day-to-day banking products and services designed to save our customers time and money including:

1. No Fee Checking Account

Safeway SELECT Bank customers will save money with our No Fee Checking Account -- a unique bank account that combines checking with savings, with absolutely no day-to-day banking fees. That means no minimum balance, free unlimited transactions and unlimited check writing, free unlimited use of Safeway SELECT Bank ATMs, free unlimited phone and Internet banking, free use of your ATM card for purchases plus a higher interest paid on deposits.

2. Savings Account

Our Savings Account earns money market rates comparable to term deposits, with no minimum balance and no administration fees, plus easy access. Customers can deposit money to the Savings Account at any Safeway SELECT Bank ATM.

3. Plus:
  • Both personal and home equity lines of credit with very low borrowing rates

  • Certificates of deposit offering competitive interest rates guaranteed for the term of your deposit plus an Asset Builder Loan designed to help you purchase a CD, and a CD secured loan that uses your CD as collateral

  • Flexible mortgage options to suit a variety of needs with competitive rates and a fast and easy application process

  • Car and Truck Loans for financing the purchase of a new or used car or truck

  • Gold and platinum VISA credit cards with no annual fees, lower interest rates, free personalized Convenience Checks, and worldwide access to cash advances, plus three additional cards absolutely free.

  • Customers can also have their paychecks or government benefits automatically deposited into their Safeway SELECT Bank account

  • Overdraft protection is available to avoid potential charges for non-sufficient funds -- there's no monthly fee and customers only pay interest on the amount they use

  • Special services including wire transfers, certified checks, stop payments, electronic bill payments and extra statement copies are all available at a small additional charge
An online bank with a twist
Safeway SELECT Bank customers can do their banking 24 hours a day, seven days a week, 365 days a year:
  • By phone through a toll-free number -- 877/924-7800 -- where Customer Associates are available any time of the day or night

  • Over the Internet at www.safewayselectbank.com
Plus customers can visit a Safeway SELECT Bank pavilion in their local Safeway store to do their banking at the same time they are doing their shopping:
  • Customer Associates are available seven days a week at in-store pavilions for face-to-face service -- to sign up customers, assist with the purchase of new products and provide demonstrations and information about Safeway SELECT Bank services
The Safeway SELECT Bank pavilion also contains a phone, an ATM and Internet banking access

Free groceries

Customers earn Savings Awards redeemable for free groceries at Safeway stores by banking with Safeway SELECT Bank. It's our way of saying thank you to our customers for choosing Safeway SELECT Bank.

History of Safeway SELECT Bank
  • Safeway SELECT Bank services were developed specifically for Safeway customers, based on the Safeway SELECT principles of premium quality and superior value

  • Safeway SELECT Bank is the result of a strategic alliance between Safeway and Amicus FSB

  • Amicus FSB, a member of the Federal Deposit Insurance Corporation, will supply all the banking services and hold all deposits made by Safeway SELECT Bank customers