wholefoodsmarket presentation_am07

2007

Annual Meeting

of Shareholders

Safe Harbor Statement

The following constitutes a "Safe Harbor" statement under the private securities litigation reform act of 1995. Except for the historical information contained herein,

the matters discussed in this presentation are forward-looking statements that involve risks and uncertainties, which could cause our actual results to differ

materially from those described in the forward-looking statements.

These risks include but are not limited to general business conditions, the timely development and opening of new stores, the impact of competition, and other risks detailed from time to time in the Company's SEC reports, including the reports on

Form 10-k for the fiscal year ended September 24, 2006.

In addition to those risks, there are risks and uncertainties associated with the tender offer made by the Company for Wild Oats Markets’ common stock. Those risks

include risks that the transaction will not be consummated on the terms or timeline first announced. Further information concerning those risks are included in the

Company’s filings with the SEC in response to the tender offer.

The Company does not undertake any obligation to update forward-looking statements.

• World’s leading natural & organic foods supermarket

• 31% CAGR in sales since IPO

• Fiscal 2006 sales of $5.6 billion

• Currently 192 stores in 32 states, Canada, & U.K.

• 42,000 Team Members

• Member of S&P 500 and Nasdaq-100 indices

• #449 of the Fortune 500

• 5th most valuable U.S. public food retailer after Wal-mart, Kroger, Safeway & Supervalu

our

Stakeholder Philosophy

Our “bottom line” ultimately depends on our ability to

satisfy all of our stakeholders.

Our goal is to balance the needs and desires of

our customers, Team Members, shareholders, vendors,

communities and the environment while creating value for all.

By growing the collective pie, we create larger slices for all of

our stakeholders.

Our Core Values reflect this sense of collective fate and are

the soul of our company.

we’re about

More Than

Just Food

• We are a mission-driven company, and that is important to our customers

• We are the authentic retailer of natural & organic products

• We are a lifestyle brand

• We have created a unique environment that functions as a “third place”

selling the highest quality natural & organicproducts available

Core Value #1

We define quality by evaluating the ingredients,

freshness, safety, taste, nutritive value and

appearance of all of theproducts we carry.

We appreciate and celebrate the difference natural and

organic products can make in the quality of one's life.

ourQuality Standards

• We carefully evaluate each and every product we sell

• We feature foods that are free of artificial preservatives, colors, flavors,

sweeteners, and hydrogenated fats

• We are passionate about great tasting food and the pleasure of

sharing it with others

• We are committed to foods that are fresh, wholesome and safe to eat

• We seek out and promote organically grown foods

• We provide food and nutritional products that support health

and well-being

satisfying & delightingour customers

Core Value #2

Only by satisfying our customers’

needs first do we have the

opportunity to satisfy the needs of

our other stakeholders.

We do all we can to make food

shopping fun!

Austin 1980

Where it All Began

the latest generation

Food Venues


Big Wine


Talking Stores

Whole Foods Market

pile on the flavor,

not the additives

our

Private Brand

Opportunity

• We are the strongest brand with our customers

• As of 1Q07:

– 1900 SKUs

– 17% of grocery & Whole Body sales

• We expect private label to grow to a much higher percentage of our sales over time

our

Whole Trade Guarantee

• Whole Trade Elements: Quality, Price, Labor & Environment

• Launching in late March

• Partnering with leading environmental and labor equity certifying agencies

Ensures a premium price to producers.

Provides higher wages and better working conditions for workers.

Promotes a more sustainable environment.

Meets our high quality standards.

2007World’s leading natural & organic foods supermarket•Fiscal 2006 sales of $5.6 billion•Currently 19x stores in 31 states, Canada, and the U.K. •xx,000 Team Members•Member of S&P 500 and NASDAQ-100 Indices•#449 of the Fortune 500•5th most valuable U.S. public food retailer after Wal-Mart, Kroger, Safeway & SuperValu

supporting Team Member

happiness & excellence

Core Value #3

We strive to create an

empowered work environment

that celebrates success and sees

failure as an opportunity

for growth.

Our culture sets us apart.


our

Guiding Principle

of Shared Fate

• Open salary information

• Salary cap – 19x

• 94% of options granted to non-executives

• Gainsharing

• Benefits vote by Team Members every three years

• Fully paid health insurance

• Personal Wellness Accounts

In 2004, U.S. CEOs received $431 for every $1 the average worker earned.

Estimated distribution of options outstanding as of

2005 in the U.S.

All Others

25%

Top 5 Execs75%

Data Sources: Business Week (1980-2000) Institute for Policy Studies-United for a Fair Economy (2004), Profits with Principles

0%

5%

10%

15%

• #5 in 2007

• highest ranking ever

• 10 years in a row

• 1 of only 18 companies to make list since its inception

Happy Team Members create Happy Shareholders

Fortune "100 Best“ Returns vs. Stock Market 1998-2005

Source: Russell Investment Group

100Best

ResetYearly

100Best

Buy &Hold

S&P500

Russell3000

10.7%

6.0% 6.3%

14.2%

creating wealth through profits & growth

Core Value #4

Growth Since IPO

Number of Stores

Sales

Earnings per Share

Team Members

Stock Price

9/24/06

186

$5.6 B

$1.41

41,500

$59.29

9/29/91

10

$92.5 M

$0.08

1,100

$2.13

CAGR

22%

31%

21%

27%

25%

*Stock price & EPS are split-adjusted.

2006

Another Great Year

• 19% sales growth

• 11% comp store sales growth

– 3rd consecutive year of double-digit increase

• Opened 13 new stores

• Entered four new markets

• $899 sales per square foot

• $39 million improvement in EVA

• Implemented our 3rd stocksplit

we produce

Consistent Cash Flow

In FY06, we:• Produced $453 million in cash

from operations

• Received $222 million in stock option proceeds

• Invested $340 million in capital expenditures

• Paid $358 million in dividends

• Declared our fourth dividend increase post Q4

• Repurchased $100 million of stock

• Ended the year with $256 million in cash and investments

$0.30 $0.47 $0.60

$2.00Special

2004

2005

Dividends Declared Per Share

(stock split adjusted)

Subject to capital availability and a determination that cash dividends continue

to be in the best interest of our shareholders, it is the intention of the Board of Directors to continue to pay a quarterly

dividend.

2006

we are

Gaining Market Share

Sales Growth

Comp Store Sales Growth

Two-Year Comps*

YOY Square Footage Growth

5-Yr RangeLow High

17% 23%

8.6% 14.9%

18.6% 27.8%

10% 14%

5-YearAverage

20%

11.5%

22.7%

12%

1Q07

12%

7.0%

20.0%

9%

*Sum of two years.

we are producing

Consistent Results

Gross Profit

Direct Store Expenses

Store Contribution

G&A

5-Yr RangeLow High

34.2% 35.1%

25.2% 25.5%

9.0% 9.6%

3.1% 3.6%

5-YearAverage

34.8%

25.4%

9.4%

3.2%

1Q07

34.3%

25.8%

8.4%

3.0%

we are delivering

Strong Returns

Comparable Stores (1Q07)

Over 11 years old

Between 8 and 11 years old



Less than 2 years old (incl. relos)

All Comparable stores

All Stores

TotalSquare

Feet

1,366,400

953,800

1,349,000

1,417,500

1,022,200

6,108,900

6,581,300

Avg.Comps

3.8%

4.6%

6.5%

9.3%

15.2%

7.0%

NOPATROIC*

77%

65%

40%

25%

4%

35%

31%*Includes pre-opening expense.

we produce

Consistent Cash Flow

In 1Q07, we:• Increased operating cash flow per

share 30% to $0.79

• Produced $112 million in cash from operations

• Received $29 million in stock option proceeds

• Invested $153 million in capital expenditures

• Paid $21 million in dividends

• Ended the quarter with $222 million in cash and investments and long-term debt of $3 million

Square Footage Expected to Nearly Double Over the Next Four Years

0.9

6.45.85.14.54.1

5.03.6

2.61.6

0

2

4

6

8

10

12

2002 2003 2004 2005 2006

Existing In development

• We have built a record pipeline

• We expect new store openings to accelerate in FY07 and be incrementally higher in FY08

• We have been building infrastructure at the regional & national levels

• We currently have 11 operating regions that are each responsible for designing, opening and staffing stores

we areAccelerating Our

New Store Growth

S.F

. in

mill

ions

77% of Existing S.F.

temporary side effects of

Accelerating Growth

• We expect 2007 capital expenditures in the range of $525 million to $575 million

• We expect total pre-opening and relocation costs for FY07 of $68 million to $74 million

• We expect pre-opening and relocation costs to significantly impact our fiscal year 2007 diluted earnings per share growth

• Our guidance excludes any impact from the pending merger with Wild Oats Markets

News We are Just wild About

Wild Oats Markets Merger

About Wild Oats:

• A leading natural and organic foods retailer in the U.S.

• Annual sales of approximately $1.2 billion

• Operates 110 stores in 24 states and Canada under the following banners:

– Wild Oats Marketplace (nationwide)

– Henry’s Farmers Markets (Southern California)

– Sun Harvest (Texas)

– Capers Community Market (B.C.)

• Shares similar mission, core values and quality standards

creating a stronger company

Better Able to Compete

• Tender offer of $18.50 per share in cash

• Transaction to be funded at closing with $700 million of senior term loans; we also intend to upsize our long-term senior revolving credit facility to $250 million

• Expected to close in April

• We will evaluate each banner and store to see how it fits into our brand and real estate strategy

• All of our 11 operating regions will gain stores, three of our smallest regions gaining critical mass, and we will gain immediate entry into a significant number of new markets

• We expect to recognize significant synergies through G&A cost reductions, greater purchasing power, increased utilization of support facilities and new Team Member talent

• Integrating acquisitions is a core competency

we are creating

Long-Term Shareholder Value

0%

100%

200%

300%

400%

500%

2001 2002 2003 2004 2005 2006

WFMI NASDAQ Composite S&P Food Retail

Comparison of 5-Year Cumulative Total ReturnIncludes Reinvestment of Dividends

caring aboutour communities

& our environment

Core Value #5

We recognize our responsibility to be an active participant and

supporter of our local communities.

We seek to balance our needs as a business with the needs

of our planet.

$12 Million (6% After-Tax Profits)

in Charitable Contributions

90%GivenLocally

10% toWFM Global Foundations

we support

Our Local Growers

• In 2006, we sold $163 million of produce from local growers

• Promoting local sourcing of product through providing loans to small, local farmers, ranchers and manufacturers

• Hosting local farmers markets at many of our stand-alone store locations

• Local beyond produce


we are leaders in

Environmental

Stewardship

We are the only

Fortune 500 company to

purchase sufficient wind

energy credits to offset

100% of its electricity use.

We received the

EPA’s Green Power Partner

of the Year award.

we

Think & Act Green

• Making decisions for our stores, offices and non-retail facilities that

positively impact the health of our planet and local communities

• Green Mission Task Force

• National Energy Manager

• Grass roots efforts across our company


our

Animal Compassion

Foundation

Our mission is to improve the quality of life of farm animals by helping farmers achieve a

higher standard of animal welfare excellence.

Initially funded byGlobal 5% Day.

Going forward,Whole Foods Market will

donate $1 million annually.

ourWhole PlanetFoundation

Our Mission is to create economic partnerships with the poorin those developing-world communities that supply

our stores with product.

Through innovative assistance for entrepreneurship — including direct micro-credit loans and tangible support for other community

partnership projects — we seek to unleash the energy and creativity of every human being we work with in order to create wealth and

prosperity in emerging economies.

ourWhole PlanetFoundation

• Initially funded through a Global 5% Day, Whole Foods Market

will donate $1 million annually

• Accomplishments to date:– Since Spring 2006, we have loaned $297,092 to 1,474 women

in Costa Rica, with a 100% repayment rate– Since Spring 2006, we have loaned $186,834 to 1,217 women

in Guatemala, with a 100% repayment rate– In 2007, we are expanding into Honduras, Nicaragua and India

we haveTremendous Growth

Opportunities

• We are a desirable tenant that drives traffic to shopping centers

• No markets are saturated

• Top markets allow dense concentration of stores and are still underserved

• Lots of opportunity in secondary markets

• International expansion

$0

$2

$4

$6

$8

$10

$12

Sale

s in

Bill

ions

FY06 2010 Goal

$5.6bil

$12bil

our goal is$12 BILLION IN SALES

IN 2010

21%CAGR

Coming to London in June


the best

Is Yet

to Come

• We are the authentic retailer of natural & organic products

• We are continually redefining the marketplace and further differentiating our stores and customer experience

• We believe our sales potential is much greater than $12 billion, as the market continues to grow and we continue to improve


our vision

Reaches Beyond

Food Retailing

Our company mission &core values are atthe center of ourbusiness model

Our success benefits allof our stakeholders

We look forward to sharing& extending our vision with the

rest of the world

wholefoodsmarket presentation_am07

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