Safeway Inc. (Safeway) is one of the largest food and drug retailers in North America. At year-end 2008, Safeway generated sales in excess of $44 billion, and operated 1,739 stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic Regions of the United States and in Western Canada. In support of our stores, Safeway has an extensive network of distribution, manufacturing and food processing facilities. Safeway owns and operates, an Internet grocer doing business under the names, and Through our subsidiary, Blackhawk Network Holdings, Inc., we provide third-party gift cards, prepaid cards and sports and entertainment cards to retailers in North America, the United Kingdom, France and Australia. Safeway also holds a 49% interest in Casa Ley, S.A. de C.V., which at year-end 2008 operated 146 food and general merchandise stores in Western Mexico.