May 2008

Ahold CEO John Rishton told shareholders at the retailer’s annual meeting in Amsterdam on April 23 that he has been satisfied with the company’s profitable growth performance, noting that Ahold’s share price had outperformed the AEX (Amsterdam Euronext) by more than 15 percent in 2007.

Leading his first shareholder meeting since becoming permanent chief executive late last year (Rishton was named interim CEO last May when former chief executive Anders Moberg resigned), the former British Airways CFO said Ahold has made “good progress” on its strategy that was unveiled in November 2006. The core of that strategy focuses on portfolio, company structure, growth plans and financial targets.

Rishton pointed to Ahold’s corporate reorganization in late 2007, which saw Larry Benjamin and Dick Boer head up U.S. and European operations respectively, noting that the new executive teams have strengthened Ahold’s capabilities and gives the company the skills to address the challenges it faces.

“The reorganization has already proven valuable, enabling us to share and transfer knowledge more easily,” Rishton declared.

While not commenting specifically on the success of its Value Improvement Program (VIP) which was unveiled by Giant/Landover and Stop & Shop in September 2006, Rishton said that VIP is “on track” and was 70 percent completed by the end of last year.

A highlight of 2007 was the performance of Giant/Carlisle, which reported its 51st consecutive quarter of positive ID store sales and 36th year of record sales and profits.

Looking forward, Rishton said Ahold continue to build on the strong foundations that have been put in place. In the U.S., Ahold is simplifying its Stop & Shop and Giant/Landover stores, focusing on making selection more relevant and appealing. Giant/Carlisle will continue to roll out innovative features in its new and remodeled stores while still maintaining its competitive edge as well as attracting new customers.

Rishton said that Ahold would continue to expand private label development, noting the success of its Nature’s Promise natural brand in the U.S. and that the multi-national food retailer will continue to invest in “price.”

“We are determined to offer great value at fair prices to customers and to communicate that message clearly,” he told about 250 shareholders who attended the meeting which was held at Amsterdam’s Musiekgebouw (Music Hall).

Companywide, in 2008 Ahold will target taking costs out of the business. Rishton said the retailer is on track to achieve its target of 500 million euro savings by the end of 2009.

Shareholders adopted Ahold’s 2007 financial statements and determined the dividend over 2007 at EUR 0.16 per common share, to be paid on May 13, 2008.

“Today, Ahold is a stronger business. I am confident that we can achieve the targets we set for 2008. We know what our customers want, we have clear plans for the future, and we will continue to deliver. 2008 will be an interesting year with, I am sure, some new challenges. As we have said before, in the United States, price investments related to the acceleration and further roll-out of the Value Improvement Program will continue to impact both sales and margins in the first part of the year - with improvements expected later in the year. We are confident that the actions we are taking to bring value to our customers are the right ones. We remain vigilant about the changing economic environment and rising food prices.

“I am proud of the work that we've done to put Ahold on a solid foundation although I know we have a lot more to do. We have great teams in all of our companies and I am confident that we will overcome any challenges that come our way. Our people delivered in 2006 and 2007 - they will deliver in 2008 and beyond. I am grateful for their dedication,” Rishton told the shareholders.