Press Releases

(LOS ANGELES) — Unified Western Grocers, Inc., the largest retailer-owned wholesale grocery distributor in the Western United States, announced a solid earnings performance for the quarter ended March 29, 2003.

The Los Angeles-based distributor's continuing operations before estimated patronage dividends and income taxes achieved earnings of $4.6 million during the quarter, a 40 percent improvement over the same period last year. Net earnings were more than $1 million for the quarter, compared to a net loss of $818,000 in the second quarter of 2002.  While sales for the quarter were down about 4 percent from the previous year, this was due largely to the soft economy and a reduction in sales of low margin product.

The results through 26 weeks showed earnings from continuing operations before estimated patronage dividends and income taxes of $10.7 million, which is a 39 percent increase from the prior year. Net earnings year-to-date have totaled $2.3 million versus a loss of $2.8 million in the previous year.

As a result of its improved operations, Unified has generated estimated patronage dividends earnings of $6.8 million or a 20 percent increase over the prior year.

The Company attributed its solid earnings performance to increases in productivity and throughput in each of the Company's five major distribution centers, a company-wide reduction in expenses and closure of other unprofitable subsidiaries. In addition, cash flow from operations also improved significantly, debt was reduced and the balance sheet was strengthened.

"We are very happy with our performance during the second quarter," said Al Plamann, president and chief executive officer, Unified Western Grocers. "Although grocery sales typically decline at this time of year, and the Easter/Passover holiday occurred later than usual, we were able to improve our earnings over the previous year by nearly 40 percent.

"We remain optimistic about the remainder of the year, as well," Plamann said. "In the past several weeks we have added a significant amount of new business to our Company, including new members, new customers and new stores that have been opened by existing members. We believe we are on track for a very good year."

Unified Western Grocers, Inc. is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the Western United States. Unified and its subsidiaries, which generated approximately $2.8 billion in sales during Fiscal 2002, offer independent retailers all the resources they need to compete in the supermarket industry.

An online version of Unified's Form 10-Q, filed with the Securities and Exchange Commission, is available free of charge on Unified's website at www.uwgrocers.com and at www.sec.gov/edgar.shtml.

Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Unified Western Grocers, Inc. based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-Q filed with the Securities and Exchange Commission and other interim reports. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.