Market Overview

Blackwells Lays Out Case for Change and Path Forward for Supervalu in New Presentation to Shareholders

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Supervalu's Share Price and Financial Performance Perennially Worst
Among Peers By Wide Margin

Detailed Analyses Illustrate How Incumbent Board Has Failed at Each
of Its Core Responsibilities

Shareholders Materially Harmed by Board Conflicts and Transactions,
Enabled by Six Incumbent Supervalu Directors (the "Culpable Six")

Blackwells Has Nominated Six Highly Qualified Professionals Who
Possess Required Experience, Independence and a Detailed Strategic Plan
to Unlock Value for Shareholders

Shareholders Urged to VOTE the GREEN Proxy Card for Much Needed Change

Blackwells Capital LLC (together with its affiliates, "Blackwells
Capital" or "Blackwells"), an alternative investment management firm,
today publicly released a presentation
to shareholders
of Supervalu Inc. (NYSE:SVU) ("Supervalu" or the
"Company"), entitled "Board Member Accountability," detailing the need
for change at Supervalu and a path forward to create and unlock value
for all shareholders, under the leadership of its six highly qualified
nominees to the Supervalu Board of Directors. Supervalu shareholders of
record at the close of business on June 25, 2018 are urged to vote on
the GREEN proxy card at the upcoming Supervalu annual meeting of
stockholders, to be held on August 16, 2018.

Information on Blackwells' director nominees, their extensive experience
in the retail and wholesale food industry, logistics and sustainability,
and their proposed contribution to the Supervalu Board is detailed in
the presentation and in Blackwells' proxy statement, both of which are
available at www.savesupervalu.com.

As presented fully in the 179-page document, Supervalu's negative
shareholder returns and the loss of more than $10 billion in shareholder
wealth directly result from poor financial and operating performance.
The capital markets have assigned Supervalu an industry-worst valuation
multiple. As indicated by pessimistic ratings and high levels of
short-selling, analysts and shareholders appear to doubt that the latest
"wholesale transformation" will produce better results.

Based on Blackwells' analyses, Supervalu's declining stock price,
financial and operating metrics can all be in turn attributed to a
failure by Supervalu's incumbent directors to fulfill their most basic
duties across all major Board responsibilities:

   

1.

 

To set and implement a differentiated, results-oriented
strategy;

2.

To oversee business execution and hold management accountable
for lapses in execution;

3.

To recruit, support and retain talented executive managers;

4.

To align compensation with shareholder value creation;

5.

To review diligently all M&A and the allocation of corporate
capital;

6.

To ensure shareholders have accurate, transparent, and
intelligible disclosures;

7.

To engage and communicate with investors professionally, openly
and regularly; and

8.

To be a steward of the company's environmental, social and
governance responsibilities and policies.

 

"In this presentation, we provide the data to support our conclusion
that this Board has failed at each of its major responsibilities," Mr.
Aintabi continued. "Shareholders have patiently waited year after year
for the current Board and leadership to fix the Company's problems and
‘transform' its businesses yet again, only to see failures repeated and
compounded. Based on our research, we believe it is folly to expect
different results from this Board, which lacks the skills, independence
and alignment with shareholders necessary to put the Company on a
winning path."

Blackwells' presentation provides extensive evidence for its view of why
the incumbent directors have repeatedly failed to arrest the Company's
decline, documenting their lack of industry experience, their minimal
share ownership and purchases, and conflicts of interest with their
fiduciary duties.

Most seriously, Blackwells' research has uncovered evidence of what it
believes to be staggering disloyalty on the part of six incumbent
Supervalu directors, the "Culpable Six," who have not served the
shareholders of Supervalu well and, in some cases, had deep personal and
business conflicts that were not clearly disclosed or understood by
shareholders. Among other things, several of Supervalu's directors sat
on the Supervalu board while negotiating M&A transactions with
Supervalu's direct competitors, and stood by while incomplete and
confusing financial disclosures obfuscated the true financial
performance of the Company, to the benefit of their outside business
partners or interests.

Mr. Aintabi continued, "With $14 billion in sales, more than 31,000
employees and a leading position in America's food supply chain,
Supervalu matters. But under the leadership of what we believe to be an
entrenched, disloyal group of directors, the Company has languished
badly. Shareholders need and deserve better, as do all Supervalu's
stakeholders. We have put forward exceptionally skilled and experienced
nominees, who bring decades of recent executive-level experience in
retail and wholesale food businesses, logistics and sustainability and,
importantly, pristine records of integrity that Supervalu desperately
needs at this pivotal point.

"These nominees have developed their own impressive and extensive plan
for the Company and a roadmap for unlocking shareholder value and
fulfilling their responsibilities as directors, once elected. The
thoughtfulness of the plan demonstrates how fit the nominees are to
serve as fiduciaries for all shareholders."

In the presentation released today by Blackwells, the nominees provide
detailed information and supporting analysis for their proposed plan for
Supervalu. The major elements of the strategic plan involve stabilizing,
growing and monetizing the businesses owned by Supervalu. Specific
opportunities are discussed along with the expected execution timelines.

"We encourage all of our fellow shareholders to review carefully the
information we have provided in the presentation, along with disclosures
by Supervalu. We are convinced that there is one best path here to value
creation: voting the GREEN card to elect the six skilled, independent
professionals we have nominated."

Blackwells' presentation to Supervalu shareholders is available at www.savesupervalu.com/presentation.

For any questions about how to vote, please contact Morrow Sodali, at Blackwells@morrowsodali.com
or (800) 662-5200.

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.

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