Kroger Partners With InStore Broadcasting Network to Launch TV Network for Customers in 2,500+ Stores

Kroger Partners With InStore Broadcasting Network to Launch TV Network for Customers in 2,500+ Stores

CINCINNATI, Aug. 17 /PRNewswire-FirstCall/ -- The Kroger Co. (NYSE:KR) today announced it has entered into a multi-year agreement with InStore Broadcasting Network (IBN) to provide a television network for customers in more than 2,500 Kroger-owned stores across the country.

The satellite-delivered network uses plasma and LCD screens located in key locations throughout the store to deliver information about new products, services, cooking tips and special promotions. Kroger community service and relevant entertainment segments are also highlighted.

"We are very pleased that IBN, our current in-store radio network provider, worked with us to develop this new communication product that will enhance our customers' shopping experiences," said Evan Anthony, Kroger corporate vice president of marketing and advertising. "We can now coordinate the messages brought to our customers through both in-store radio and television. For the first time, we can combine in-store radio and TV to deliver what we call 'perfect media,' with multiple channels in each store displaying fun, exciting and relevant content focused exclusively on our customers."

Robert Brazell, IBN chief executive officer, said his firm has been leading the development of Kroger in-store media. "First and foremost, we wanted to make sure that Kroger customers like this combined service. Our studies clearly show that when a consumer is presented with concise, relevant communications inside a store, they appreciate the suggestions and information. Our In-Store Radio has been a trusted medium for retailers and shoppers for many years, filling the store with music and messages. Now TV screens will help to bring sight and motion to that familiarity."

Installation of the network will take place over the next 18 months. It is projected that more than 68 million shoppers will be exposed to in-store media every week.

The Perfect Media(TM) concept has been patented by IBN as it pertains to the combined use of in-store audio and in-store television coupled with transaction results. The synchronization of certain aspects of the media permits a clear and unified communications platform for Kroger and advertisers. The system also allows for customization by store, group of stores or other categories. The capability to trigger content by weather, day-part and other variables is also built into the system.

"Kroger represents one of the most important retail segments in the United States because of its reach and demographic combination," said George Wishart, president of IMS Media Solutions, a research division of VNU. "The Kroger/IBN in-store audience measurement sciences that are being designed for media planners and buyers will fit into their existing criteria. This represents a radical change in how people will approach buying out-of-home media."

Added Pierre Bouvard, president of Arbitron Retail Services: "Our retail media studies clearly indicate that consumers like in-store media if executed properly. It's tremendously appealing because it permits terrific reach and frequency at the place where it has incredible influence -- at the point of sale."

Headquartered in Cincinnati, Ohio, Kroger is one of the nation's largest retail grocery chains. At the end of the first quarter of fiscal 2005, the Company operated (either directly or through its subsidiaries) 2,524 supermarkets and multi-department stores in 32 states under two dozen local banners including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's and Smith's Marketplace, Fry's and Fry's Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly or through subsidiaries, franchise agreements, or operating agreements) 793 convenience stores, 432 fine jewelry stores, 552 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at http://www.kroger.com/.

About IBN

InStore Broadcasting Network (http://www.ibnads.com/) is the largest retail place-based media company in the world. IBN is the only measured electronic retail media company with exposure to more than 256.9 million shopper visits per month in over 17,000 grocery and drug stores in the US and Canada. IBN deploys patented technology and systems comprising "Perfect Media(TM)," a unique synchronized and integrated media combination including audio, video, and other targeting technologies and methods that deliver advertising messages guaranteeing audience reach.

This press release contains certain forward-looking statements about the future performance of the Company. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by the words "will" and "projected." These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially. The actual installation schedule for the network, and the number of shoppers that are expected to be exposed to the media, could be affected if contractors do not perform their obligations as contemplated, labor disputes occur, or if provisions contained in agreements (as currently existing or as same may be amended) between the parties cause installation to change. Changes in traffic at locations at which media are installed also could affect the estimated number of shoppers exposed to the media. We assume no obligation to update the information contained herein.

Source: The Kroger Co.

CONTACT: Media, Gary Rhodes of Kroger, +1-513-762-1304; or Evan Twede of
IBN, +1-801-746-1709; or Investor, Carin Fike of Kroger, +1-513-762-4969

Web site: http://www.kroger.com/
http://www.ibnads.com/

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