SAFEWAY SALES, EARNINGS RISE IN QUARTER, 36 WEEKS

PLEASANTON, Calif. -- Safeway here said strong store operations helped boost sales and earnings for the third quarter and 36 weeks ended Sept. 12.

.8% for the quarter; the company said it does not calculate comp sales for the year to date.

Net income rose 115% to $193.7 million for the quarter and $61.1% to $551.7 million for the first three quarters.

The company said net income for the prior year was affected by an extraordinary loss related to early retirement of debt, totaling $59.9 million for the year-ago quarter and $64.1 million for the year-ago 36 weeks.

The big jump in year-to-date sales resulted from the company's first-quarter results, which reflected Safeway's acquisition of 320 stores from Vons Cos., Arcadia, Calif., during last year's first quarter.

3RD-QUARTER RESULTS

Qtr Ended 9/12/98 9/6/97

Sales $5.6 billion $5.4 billion

Change 4.1%

Same-store 4.8%

Net Income $193.7 million $90.1 million

Change 115%

Inc/Share 38 cents 18 cents

36 Weeks 1998 1997

Sales $16.6 billion $14.7 billion

Change 12.7%

Same-store N/A

Net Income $551.7 million $342.5 million

Change 61.1%

Inc/Share $1.09 69 cents