BRUSSELS, Belgium, Feb. 18, 2005 (PRIMEZONE) -- Delhaize Group (Euronext Brussels:DELB) (NYSE:DEG), the Belgian international food retailer, announced today that Delvita SK, its Slovak subsidiary, has reached a binding agreement to sell its 11 Slovak stores to the German retailer Rewe Group for EUR 7.7 million (excluding inventories).
Jiri Charvat, General Manager of Delvita, said: "The sale of these non-strategic Slovak stores allows us to re-focus our resources on Delvita's core markets in the Czech Republic."
Delvita expanded in 1998 to Slovakia. In 2004, the 11 Slovak stores of Delvita realized a small portion of total Delvita sales. At the end of 2004, Delvita employed approximately 570 associates in Slovakia.
Subject to contractual adjustments, the sale is expected to be neutral on Delhaize Group's 2005 results. Closing of the transaction is subject to the customary conditions, including approval by the Slovak antitrust authorities.
Delhaize Group
Delhaize Group is a Belgian food retailer present in eight countries on three continents. At the end of 2004, Delhaize Group's sales network consisted of 2,565 stores. In 2004, Delhaize Group posted EUR 18.0 billion (USD 22.4 billion) in sales. In 2003, Delhaize Group realized net earnings of EUR 171.3 million (USD 193.7 million). Delhaize Group employs approximately 138,000 people. Delhaize Group is listed on Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
This press release is available in English, French and Dutch. You can also find it on the web site http://www.delhaizegroup.com. Questions can be sent to investor@delhaizegroup.com.
Some of the statements in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about strategic options, future strategies and the anticipated benefits of these strategies. These forward-looking statements generally can be identified as statements that include phrases such as "believe", "expect", "anticipate", "intend", "plan", "foresee", "likely", "will", "should" or other similar words or phrases. Although such statements are based on current information, actual outcomes and results may differ materially from those projected depending upon a variety of factors, including, but not limited to, changes in the general economy or the markets of Delhaize Group, in consumer spending, in inflation or currency exchange rates or in legislation or regulation; competitive factors; adverse determination with respect to claims; inability to timely develop or remodel stores; and supply or quality control problems with vendors. Additional risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in Delhaize Group's Annual Report on Form 20-F for the year ended December 31, 2003 and other periodic filings made by Delhaize Group and Delhaize America with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group and Delhaize America disclaim any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.