Packaging

Delhaize Group Reaches an Agreement with Rewe for the Sale of its German Operations

Tuesday 14. July 2009 - Delhaize Group (Euronext Brussels: DELB - NYSE: DEG), the Belgian international food retailer, announced today that it has entered into an agreement with the German retail group Rewe for the sale of its four stores operated in Germany.

In December 2008, Delhaize Group decided to start the divestiture process of its four German stores, which now has been concluded successfully with an agreement to sell these activities to Rewe.
Michel Eeckhout, Chief Executive Officer of Delhaize Belgium, commented: “Despite the continued revenue growth of the last years, we decided in December of last year to sell our non-strategic German activities after an evaluation of our portfolio. Today, we can announce that we have reached an agreement with Rewe, which ensures continuity and opportunities for our customers and our associates in the German market. We want to especially thank all our colleagues from Delhaize Germany for their dedication and commitment over the past years. Together we have learned a lot from our experience in Germany. We wish them all the best for future success in their new corporate environment.”
The divestiture of the four German stores is subject to the customary conditions, including the approval by the German antitrust authorities. The transaction is expected to close in the third quarter of 2009 and at that time a capital gain will be recognized.
Delhaize Group entered the German market as a test in 2003. In 2008, Delhaize Germany recorded EUR 19.5 million in revenues and a small operating loss. Due to the decision to divest, the results of the German business have been reported as results from discontinued operations in the 2008 financial statements of Delhaize Group.