SuperValu Securities Litigation

On July 11, 2002, Company shareholders filed a complaint in the District of Minnesota against Supervalu, Inc. alleging damages resulting from the company’s false and misleading public statements concerning their financial status. Specifically, shareholders allege Supervalu failed to disclose that the Company’s net earnings for the quarterly period ending June 19, 1999, were materially inflated because the Company’s pharmacy division controller was deliberately understating the costs of goods sold. Shareholders also allege Supervalu’s reported financial results were not presented in conformity with Generally Accepted Accounting Principles ("GAAP") and were in violation of SEC Rules. As a result of the false and misleading statements, the Company’ s shares were traded at artificially inflated prices.

On June 25, 2002, the truth was revealed when Supervalu publicly admitted that its earnings and results of operations had been materially misstated as a result of accounting improprieties in the Company’s pharmacy division. The Company announced that based on its own accounting review, it might have to restate earnings for the cost of goods sold for at least four years.

In response to the Company’s disclosure, the price of Supervalu common stock dropped from $28.06 per share to $21.95 per share - a single day decline of $6.11 or approximately 22%. On July 1, 2002 Supervalu, did in fact, restate its financial statements for all of Fiscal Years 2000, 2001, and 2002.

On August 17, 2004, the District Court Judge Joan N. Erickson granted final approval to a settlement.