Also same store sales increased at Albert Heijn supermarkets by 9.3%, while operating income advanced by €61 million from last year to €161 million or 8% of net sales. The 119 year old retail chain has a network of 700 stores.

Full-year net sales from a year ago rose 12.1% to €8 billion as same store sales increased at Albert Heijn supermarkets by 7.9%. Operating income for the year was 7.2% of net sales at €573 million.

Albert / Hypernova in Czech Republic and Slovakia

Fourth quarter net sales increased 16.7% from a year ago to €427 million after same stores sales increased 10.1%. Operating income increased from a loss of €15 million to €5 million. Full-year net sales gained 12.5% from a year earlier and same stores sales in the year increased 6.8%.

Schuitema

In the quarter ended December 31st, net sales jumped 3.1% from a year ago to €773 million on same store sales increased 2%. In addition, operating income rose by €1 million to €8 million.

Full-year net sales grew 2.4% on the year to €3.3 billion as same store sales increased 1.3%. Operating income was €66 million, or 2% of net sales, down €8 million compared to last year.

In January 2008, Ahold entered into negotiations with Schuitema and CVC Capital about the potential divestment of its majority interest in Schuitema.

Joint Venture

Ahold''s share in income of joint ventures in the fourth quarter climbed €1 million from the comparative period last year to €31 million euros and in the year its share in income of joint ventures was €138 million, a decline of €14 million.

For the full year, Ahold''s share in income of joint ventures was €138 million.

Outlook

Royal Ahold forecasts that underlying retail operating margin for the year will be between 4.5% and 5%, while capital expenditure will increase to €1.1 billion.

In 2008, the company hopes to broaden VIP program at Stop & Shop and Giant-Landover, the start of the remodeling of Giant-Landover stores, further repositioning of Albert/Hypernova, and driving the growth of Albert Heijn.

The VIP program will continue to impact margins with improvements expected later in the year. Underlying retail operating margin for the year is projected to be between 4.5% and 5.0%.

Capital expenditure will be around €1.1 billion. Gross debt is expected to fall further in 2008 by €2 billion. Net interest expense for the year is expected to be in the range of €270 million to €290 million.