NEWS RELEASE FOR IMMEDIATE RELEASE July 16, 2007 SOBEYS INC. TO ACQUIRE THRIFTY FOODS Thrifty to operate as separate division of Sobeys Stellarton, N.S. / Victoria B.C. – Sobeys Inc., its parent company, Empire Company Limited (TSX:EMP.A) and Thrifty Foods today announced that Sobeys and Thrifty Foods have entered into an agreement that will see Sobeys purchase the British Columbia-based grocery retailer. The transaction is based on an enterprise value of $260 million and is subject to adjustments for, among other items, assumed liabilities and working capital at closing. Upon closing, the deal will be immediately accretive to both Sobeys and Empire. “We are delighted to have entered into this agreement with Alex Campbell and Thrifty Foods,” said Bill McEwan, President & Chief Executive Officer, Sobeys Inc. “Thrifty’s is a very well respected and well run food-focused retailer with great management and a reputation for exceptional customer service.” Thrifty’s business includes 20 full-service supermarkets, a main distribution centre and a wholesale division on Vancouver Island and the Lower Mainland of British Columbia. “Over the last 30 years, working alongside a dedicated and talented group of people, we have built a market leader in the retail grocery business,” said Alex A. Campbell, Chairman, Thrifty Foods. “More recently, we have come to the realization that if we want to continue as the market leader, then we must commit to a new era of growth. I am very pleased to find, in Sobeys, a company that is committed to the long-term growth and success of Thrifty Foods.” The deal is expected to close during Sobeys’ and Empire’s second quarter following receipt of regulatory approval and completion of due diligence. /2 About Sobeys Inc. Sobeys Inc. is a leading national grocery retailer and food distributor. A wholly-owned subsidiary of Empire Company Limited (TSX:EMP.A), Sobeys owns or franchises more than 1,300 stores in all 10 provinces under retail banners that include Sobeys, IGA, Foodland and Price Chopper food stores and Lawtons Drug Stores. Sobeys Inc. is committed to providing the most worthwhile experience for its customers, employees, franchisees, suppliers and shareholders. More information on Sobeys Inc. can be found at www.sobeys.com. About Empire Company Limited Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire's key businesses include food retailing and related real estate. With $5.2 billion in assets, Empire employs approximately 40,000 people directly and through its subsidiaries. More information about Empire Company can be found at www.empireco.ca. About Thrifty Foods Central Saanich B.C.-based Thrifty Foods is Vancouver Island’s largest private sector employer with 3,700 employees serving customers in 20 stores throughout the Island and B.C.’s Lower Mainland. Well-known for its superior customer service, staunch community support and a broad range of organic and other innovative food products, the company has been a favourite with customers since its inception in 1977. Thrifty Foods was recently re- named as one of Canada’s 50 Best Managed companies for the fourth year in a row. For More Information: Sobeys Investor Contact Empire Investor Contact Paul Jewer, C.A. Paul V. Beesley Senior Vice President Executive Vice President & Finance & Treasurer Chief Financial Officer (902) 752-8371 ext. 2220 (902) 755-4440 Sobeys Media Contact Thrifty Foods Media Contact Andrew Walker Michael Alexander Vice President Communications Manager Communications & (250) 483-1173 Corporate Affairs (905) 293-6711 .