wholefoodsmarket presentation_am08

March 10, 2008

9:00 to 10:30 A.M.

Annual Meeting of Shareholders

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 successful integration of acquired businesses into our operations, 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 30, 2007.

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

Safe Harbor Statement

World’s leading natural & organic foods supermarket

30% CAGR in sales since IPO

Fiscal 2007 sales of $6.6 billion

Currently 271 stores in 37 states and the District of Columbia, Canada, and U.K.

53,000 Team Members

Member of S&P 500 and NASDAQ-100 indices

#411 of the Fortune 500

5th most valuable U.S. public food retailer after Wal-Mart, Kroger, Safeway and SUPERVALU

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”

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, investors, suppliers, 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 ofour company

Selling the Highest Quality Natural and Organic Products Available

Core Value #1

Our Quality Standards

Since June 2004, we have only sold eggs from cage-free hens.

In January 2005, our kitchens, bakeries, bake houses and commissariesadopted this standard for our baked goods and prepared foods.

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 and Delighting our Customers

Core Value #2

Experiment, Innovate, Improve!

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!

We offer a differentiated shopping experience

Private Label Opportunity

We are the strongest brand with our customers

As of 1Q08:

2,200 SKUs

19% of grocery & Whole Body sales

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

Buying Local

We seek out locally grown products that meet our high quality standardsWe host farmers’ markets in our store parking lotsWe offer up to $10 million in loans

We have made 25 loans totaling over $1 million to growers from 13 statesVideo clip

Buying GlobalOur Whole Trade Guarantee:

Exceptional product quality

More money for producers

Better wages and working conditions

Sound environmental production practices

Support for eliminating poverty

Currently over 600 items

Our goal is to have over 50% of our imported products from developing countries under Whole Trade label within 10 years

Five-Step Animal Welfare Rating Program

Providing customers with a clear and transparent way to make informed buying decisions based solely on animal welfare considerations

Step 1: No Cages, No Crates

Step 2: Enriched Environment

Step 3: Pasture Based

Step 4: No Mutilations

Step 5: On-Farm Birth & Slaughter

Launched in the U.K. with plans to launch in the U.S. this summer

Enriched Environment

No Cages, No Crates

Supporting Team Member Happiness and Excellence

Core Value #3

Our Guiding Principle

Open salary information

Salary cap – 19x

Benefits vote by Team Members every three years

Gainsharing

Fully paid health insurance

Personal Wellness Accounts

93% of options granted to non-executives

Estimated distribution of stock options outstanding in U.S. as of 2005

Shared Fate In 2005, U.S. CEO’s received $411 for every $1 the average worker earned.

All Others25%

Top 5 Execs75%

Data Sources: Business Week (1980-2000) Institute for Policy Studies-United for a Fair Economy (2006), Profits with Principles (2004)

Happy Team Members Create Happy Shareholders

In 2008, we ranked #16 on FORTUNE’S “100 Best Companies to Work For” List

We are one of only 14 companies to make the list since its inception 11 years ago

FORTUNE “100 Best” Returns vs. Stock Market 1998-2007

Source: Russell Investment Group; Great Place to Work Institute, Inc.

0%

5%

10%

15%

100 BestResetYearly

100 BestBuy &Hold

Russell3000

9%

6% 6%

12%

S&P500

Creating Wealth through Profits and Growth

Core Value #4

Growth Since IPO

9/30/07 9/29/91 CAGR

NUMBER OF STORES 276 10 23%SALES $6.6 B $92.5 M 30%EARNINGS PER SHARE $1.29 $0.08 18%TEAM MEMBERS 52,600 1,100 27%STOCK PRICE $48.96 $2.13 22%

*1991 Results do not include the impact of subsequent pooling transactions and accounting restatements. Stock price is split-adjusted IPO price in January 1992.

We Stepped Up Our Growth in 2007

15% sales growth

7% comp store sales growth

Average weekly sales per store were $632,000*

Sales per square foot were $923*

We opened a record 21 new stores

We merged with Wild Oats

We signed 28 new leases

*Excludes acquired Wild Oats stores.

We Debuted in London

We have hired a VP of Real Estate

We hope to have additional sites to announce in the U.K. in the near future

We Revitalized Our Brand in Chicago

We opened four new stores this year

In 2009, we plan to relocate our highly successful 36,000 square foot Lincoln Park store to an 80,000 square foot store

We Opened Our Fourth Store in NYC

We will open our fifth store in Tribeca this summer

We have a sixth store in development on the Upper West Side

We also have sites in development in Brooklyn, Yonkers and Long Island

We Completed the Wild Oats Merger

We gained immediate entry into 15 new markets and five new states

All 11 operating regions gained stores, with our three smallest regions benefiting the most

We believe this merger will create long-term value for all of our stakeholders

We Have Already Made Tremendous Strides

CulturallyMorale in the stores is higher than we have experienced in any past mergers

OperationallyTransitioned to Payroll & Benefits plans in JanuaryPurchasing & Information systems conversion expected to be completed by end of the second quarter

Re-BrandingNine stores to date with goal of all stores by year end

We have made up-front investments in advance of what we expect to be significant long-term improvements in sales and earnings

We Signed 28 New Store Leases in 2007

We currently have 88 signed leases

14 new markets

22 relocations

51,000 average square feet in size

We expect up to 21 new store openings in FY08

We expect 25 to 30 new store openings in FY09

1.6

4.5 5.1 5.8 6.4 9.3

2.63.6 5.0

4.5

0

2

4

6

8

10

12

14

16

2003 2004 2005 2006 2007

S.F.

in m

illio

nsExisting In development

48% of Existing Square Footage

We Are Gaining Market Share

Five-Year Range Five-YearLow High Average 1Q08

SALES GROWTH 13.2% 22.8% 18.8% 18.6%

COMP STORE SALES GROWTH 7.1% 14.9% 10.9% 9.3%

TWO-YEAR COMPS 18.1% 27.8% 22.3% 16.3%

ENDING SQUARE FOOTAGE GROWTH 10% 18% 13% 19%


We Are Producing Consistent ResultsFive-Year Range Five-Year

Low High Average 1Q08

GROSS PROFIT 34.2% 35.1% 34.8% 34.1%DIRECT STORE EXPENSES 25.2% 26.0% 25.6% 26.2%STORE CONTRIBUTION 8.9% 9.6% 9.3% 8.0%G&A 3.1% 3.2% 3.2% 3.4%

% OF SALES – Identical stores 89% 91% 90% 87%

% OF SALES – New & relocated stores 7% 9% 8% 11%


We Are Delivering Strong Returns

# of Average NOPATComparable Stores (1Q08) Stores Size Comps ROIC

Over 11 years old 64 28,300 5.4% 78%Between 8 and 11 years old 28 33,400 4.0% 55%Between 5 and 8 years old 41 33,900 8.3% 41%Between 2 and 5 years old 41 44,600 11.7% 22%Less than 2 years old (incl. 5 relos) 15 58,100 37.7% -2%

All comparable stores (7.6 yrs. old) 189 36,200 9.3% 34%All identical stores (7.9 yrs. old) 184 35,400 7.1% 38%All stores excluding Oats (6.7 yrs. old) 208 37,800 26%

We Produce Strong Cash Flow

EBITANCEEarnings before interest, taxes and non-cash expenses

We believe EBITANCE better reflects the current accounting reality of significant non-cash expenses beyond depreciation and amortization such as share-based compensation, deferred rent and LIFO

For 1Q08: Cash flow from operations was $70 million

EBITANCE was $167.5 million or $1.19 per diluted share, a 15% increase over the prior year

Goals for Fiscal Year 2008

Sales growth of 25% to 30%

Comparable store sales growth of 7.5% to 9.5%

Open up to 21 new stores

Do not expect to produce operating leverage primarily due to:a decrease in store contribution from a higher percentage of sales from new and acquired stores

investments in labor and benefits at Wild Oats stores

flat G&A as a percentage of sales year over year

We Are Creating Shareholder Value

Comparison of Five-Year Cumulative Total Return(Includes reinvestment of dividends)

Dividends Paid Per Share(Stock split adjusted)

$0.23

$0.58

$2.00Special

$0.42

2005

$0.69

2004 2006 2007

Caring About Our Communities and Our Environment

Core Value #5

We Care about Our Communities

We made charitable donations of just under $15 million or about 8% of our after-tax profits last year

On a local basis, we support thousands of local community events and organizations

Our Whole Planet Foundation seeks to create economic partnerships with the poor in the developing-world communities that supply our stores with product

Locally Globally

Changing the lives of over 75,000 people through micro-credit

Committed $6 million in micro-lending projects to date and $3.2 million in loans

Supporting 15,000 small home-based businesses

Video clip

We Care about the Environment

Support organic, local, and sustainable agriculture and sustainable seafood

Commitment to recycling and alternative energy

Better bags

Green Mission

Green Building

Distribution efforts

We Care about Animal Welfare

Non-profit foundation created in 2005Funding research and sharing best practices around the globeWill transition to Global Animal Partnership, a public foundation Five-Step Animal Welfare Rating

Goal Is $12 Billion in Sales in 2010

The Best Is Yet to Come

No Markets Are Saturated

We are a desirable tenant that drives traffic to shopping centers

Top markets allow dense concentration of stores and are still underserved

Lots of opportunity in secondary markets and internationally

Growth is largely “on the books”with 4.6 million square feet in development $0

$2

$4

$6

$8

$10

$12

FY07 2010 Goal

Sale

s in

Bill

ions

$6.6billion

$12billion

21%CAGR

We Are Investing in Our Future Growth

We believe that over the long term we will continue to deliver healthy earnings growth through strong sales growth rather than through significant operating leverage

We believe the investments we are making today in our new, acquired, and existing stores will result in substantial sales and earnings growth in the near future

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 and Core Values are at the center of our business modelOur success benefits all of our stakeholdersWe look forward to sharing and extending our vision with the rest of the world

Divided Duties of Chairman & Lead Director Ensure the Protection of Shareholders

lead discussions of strategic issues at the Board level

act as Chairman of the annual shareholders’ meeting

act as a liaison between the CEO and the Board of Directors and facilitate communication between meetings

lead the annual performance review of the CEO

lead the Board of Directors in an annual review of the performance and effectiveness of the Board and its committees

facilitate the Board of Directors’ input into the agenda for the Board meetings and work with the Chairman to set the agenda for each meeting

act as chair of regular and special meetings of the Board of Directors

act as chair of the executive sessions of the independent directors

Chairman’s Primary Duties: Lead Director’s Primary Duties:

*Please see our website for more detail

wholefoodsmarket presentation_am08

Economy & Finance