Blackwells Comments on Supervalu Plan to Sell Some Farm Fresh Stores

Blackwells Capital LLC (“Blackwells”), an alternative investment management firm with ownership representing approximately 4.1% interest in Supervalu Inc. (NYSE:SVU) (“Supervalu” or the “Company”), today released a statement in response to the Company’s announcement that it has entered into agreements to sell 21 of its 38 Farm Fresh Food & Pharmacy (“Farm Fresh”) stores for approximately $43 million.

Jason Aintabi, Managing Partner at Blackwells, said, “Supervalu’s sale of approximately 10% of its retail locations is an incremental step in the right direction. It is unfortunate that it took substantial pressure from shareholders to motivate the company to act on this vital strategic imperative. The company still owns nearly 200 retail locations, which are depressing its valuation and being neglected by management. Our view remains that the divestiture of these assets must be a priority on the pathway towards a sustainable turnaround.”

Added Mr. Aintabi, “In their announcement, Supervalu trumpets this small transaction as part of a two-year effort ‘to transform our business.’ The fact that the share price has declined over 60% during this so-called transformation demonstrates once again a lack of urgency, imagination and concern for shareholders. Blackwells reiterates its intention to nominate a slate of experienced directors to the Board in connection with the Company’s 2018 annual meeting of shareholders.”

Blackwells’ letters to Supervalu, as well as a detailed presentation with an analysis of Supervalu’s operations, strategy and finances and a plan to unlock significant value, are available at www.savesupervalu.com.

About Blackwells Capital

Blackwells Capital is an alternative investment manager dedicated to global fundamental and special situation investing across capital structures. Founded in 2016 by Jason Aintabi, its Managing Partner, Blackwells’ investment approach is research-intensive, value-oriented and concentrated. For more information, please go to www.blackwellscap.com.

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