1. BONNIE A. KANITZ DIRECTOR, DeCA EAST February 14, 2007 DeCA EAST SALES UPDATE

2. FY06 Sales ACV % Sales % Change Transactions Average Sale % DeCA100%5.417B0.9%-2.1%3.0% East46.6%$2.526B 1.7% 1.7%-1.2%2.9% Europe 8.7% 8.7% $.470B -3.8%-5.0%1.3% West44.7%$2.420B 1.0% 1.0%-2.1%3.2% DeCA East achieves over $2.5B in sales for 2006!!

3. Sales % Change Transactions % Chg Average Sale % DeCA1.414B1.2%-0.89%+1.88% DeCA East $666.4M2.2%+0.80%+1.42% Zone 1 $44.6M8.1%+7.09%+.95% Zone 2 $57.4M4.5%+5.01%-0.50% Zone 4 $91.1M0.4%-0.38%+0.80% Zone 29 $82.9M3.8%+1.68%+2.11% 1 st Qtr FY 07 vs. 1 st Qtr FY06 SALES

4.  Change in Troop Population  Katrina affect (Keesler, New Orleans, & Gulfport)  FY 06 sales: - 45.3%, FY 07 1 st Qtr sales: +56.7%,  FY06 Notional cost of Katrina = lost sales of $26M  Keesler - All military members are serving a single tour until further notice tour until further notice  FY 07 1 st Qtr sales: +34.3%  New Orleans - Hurricane Katrina local population is not at full status is not at full status  FY 07 1 st Qtr sales: +29.6%  Gulfport – Renovated store opened May 06  FY 07 1 st Qtr sales: +168.3%

5. Fort Stewart Fort Stewart  FY 06 sales: 18.3%, FY07 1 st Qtr sales: 23.8%  3 rd Infantry Division - Deploying Feb ’07 Fort Benning Fort Benning  FY06 sales: 5.1%, FY 07 1 st Qtr sales: 4.6% Camp Lejeune Camp Lejeune  FY06 sales: 9.9%, FY 07 1 st Qtr sales: 8.0% Two MEU’s Deployed Two MEU’s Deployed Fort Bragg North Fort Bragg North  FY06 sales: 12.2%, FY 07 1 st Qtr sales: 5.1% 3,500 Deployed January 07 3,500 Deployed January 07 Fort Bragg South Fort Bragg South  FY06 sales: 3.4%, FY 07 1 st Qtr sales: 3.2%

6.  Seymour Johnson  FY 06 sales: 2.2%, FY 07 1st Qtr sales: 0.36%  Renovation project just finishing up  Mayport  FY 06 sales: 0.9%, FY 07 1st Qtr sales: 13.8%  Grand re-opening November 7 – sales +17.3% since opening since opening  Key West  FY 06 Sales: - 1.2%, FY 07 1st Qtr sales: 19.6%  Sales since grand re-opening in November: +9.7%  Robins  FY 06 Sales: +1.2%, FY 07 1 st Qtr Sales: -2.9%, New Store awaiting Congressional Approval New Store awaiting Congressional Approval

7. Fort Gillem Fort Gillem  FY 06 sales: - 3.7%, FY 07 1st Qtr sales: - 0.8% Base housing closed many years ago (only 7 housing units on base) Base housing closed many years ago (only 7 housing units on base) Main gate access restricted to 7 hours daily, closed on weekends since last 4 th Qtr Main gate access restricted to 7 hours daily, closed on weekends since last 4 th Qtr Projected closure in FY 2011 Projected closure in FY 2011 Athens Athens  FY 06 sales: - 0.9%, FY 07 1st Qtr sales: - 2.46% 56 housing units on base / 60% occupied 56 housing units on base / 60% occupied Projected closure in FY 2011 Projected closure in FY 2011 Fort McPherson Fort McPherson  FY 06 sales: 1.4%, FY 07 1st Qtr sales: - 0.4% Base housing – 102 housing units / 96% occupancy Base housing – 102 housing units / 96% occupancy Projected closure in FY 2010 or 2011 Projected closure in FY 2010 or 2011

8. #1 Aggressive merchandising program #1 Aggressive merchandising program Focus on perimeter departments - - quality, availability, service, & maximum savings Focus on perimeter departments - - quality, availability, service, & maximum savings  Set expectations - perimeter always comes first  Meat – cut all that you can cut, major push to eliminate case ready on principle cuts - - maximizes customers savings  Meat Truckload / Seafood Road Shows - - aggressively stomped unauthorized installation competition

9.  Focus on perimeter departments (cont)  Produce – emphasis on merchandising and quality  Deli/Bakery – focusing on improving as it is a “real” department  Aggressive indexing of categories & MBU program compliance  Case lot/truck load sales/side walk sales – continuous special outreach events  Club pack program endorsed and promoted Summer and Winter 06

10. #2 Focus on leadership with four “E’s & P” #2 Focus on leadership with four “E’s & P” in every store in every store  Energy  Energize those around you  Edge (able to make those tough decisions)  Execute & Passion  Building strong teams to execute Agency vision and programs

11. #3 Focus on weekend vendor stocker support #3 Focus on weekend vendor stocker support  Do you really know what your support is on weekend? is on weekend?

12. One Store, One 300K Super Bowl Saturday Sales Opportunity Friday, Saturday, Sunday = 60-65% Sales Friday, Saturday, Sunday = 60-65% Sales Friday = Vendor Admin Day Friday = Vendor Admin Day Saturday/Sunday – poorest days for Vendor Stocking Saturday/Sunday – poorest days for Vendor Stocking Who’s watching the Hen House? Who’s watching the Hen House? Days Results 285K in sales = missed target goal!

13. RankDate Net Sales Event 11/31/2004$26,032,612Super Bowl 22/3/2007$26,029,117Super Bowl 311/18/2006$25,255,742Thanksgiving 42/2/2002$24,835,463Super Bowl 511/19/2005$23,802,452Thanksgiving 611/17/2001$23,765,390Thanksgiving 72/4/2006$23,571,575Super Bowl 83/3/2001$23,308,730Pay Day 97/1/2005**$23,169,867July 4th 1012/30/2005**$23,125,009New Year's Eve 119/2/2006$23,100,835Labor Day 1212/2/2006$22,896,133Pay Day 1311/20/2004$22,860,682Thanksgiving 149/30/2006$22,638,613Pay Day 152/3/2001$22,616,317Pay Day ** Friday, All other dates Saturday

14. A Lost Sale is Forever! DeCA Missed Top Sales Record Day by $3K on Feb 3 rd !

15. Want to Grow Sales?? 1) Program Weekend Checks on Service Levels 2) Fix Vendor Stocking Support on Weekends a) Separate Team for Fri, Sat & Sunday? b) Pay Hourly not by Roll-up

16. #4 Continued emphasis/training on CAO #4 Continued emphasis/training on CAO processes to optimize shelf pack-out processes to optimize shelf pack-out If you stock it, we will order it!! If you stock it, we will order it!!

17. Fort Meade Fort Meade  October 2006 – Mid-January 2007 23,624 Cases and $13,702 Paid To The Contractor 23,624 Cases and $13,702 Paid To The Contractor Hanscom Hanscom  Estimated Frozen Food Cases Stocked & Cost Per Month & Cost Per Month 7,296 Cases and $5,584 Paid To The Contractor 7,296 Cases and $5,584 Paid To The Contractor

18.  Tactical Changes To Increase Sales  Addressing leadership issues – Building Strong Teams!  Focus on perimeter sales  Focus on MBU programs & special sales events (“WOW!”)  Push club pack sales  Continued CAO training to ensure maximum shelf stock  Improve Weekend Support & Coverage  Ensuring that outreach program is at its maximum potential  Improve merchandising of the sales floor  Continuous indexing of commodities

19. Happy Valentines Day! Roses are Red Violets are Blue We can’t do it alone Partner, We need YOU!