<p><strong>CINCINNATI, OH</strong> - The Kroger Co is announcing that four of the UFCW/multi-employer pension funds to which the company contributes will join to create a new fund effective January 1, 2012. The merging of the funds is expected to reduce Kroger's annual pension contribution expense. Its will also secure the pension benefits of more than 65,000 Kroger associates. Kroger expects to contribute approximately $650 million to the fund in January of the new year, depending upon market conditions, talks with rating agencies and the approval of a few remaining UFCW locals.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> The arrangement will result in a reduced fiscal year 2012 pension expense, as well as an increase in fiscal year 2012 net earnings, by $0.04 to $0.06 per diluted share. Mike Schlotman, Kroger's chief financial officer states, “Given the challenging environment that exists for pension plans today, we are pleased to have reached an agreement that provides a meaningful future benefit for Kroger associates who participate in these plans.” He continues, “The unique characteristics of these plans, coupled with our strong financial position and today's low interest rate environment, give us the ability to contribute to the new fund in a manner that we expect to produce significant future savings.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>www.kroger.com</p><hr class="legacyRuler"><hr class="invisible minimal-padding">
