Safeway Inc. is a large food and drug retailer in North America, which, as of December 29, 2001, operated 1,773 stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States, and in western Canada. Safeway also has a 49% interest in Casa Ley, S.A. de C.V., which operates 99 food and general merchandise stores in Western Mexico. In addition, the Company has a strategic alliance with, and a 50% voting interest in, GroceryWorks Holdings, Inc., an Internet grocer. In support of its stores, Safeway has an extensive network of distribution, manufacturing and food processing facilities. The Company offers its customers an extensive selection of superior quality perishables-tender meat and fine seafood; garden-fresh produce and flowers; bakery, deli and dairy products; and a growing assortment of natural foods.