Press Releases

(LOS ANGELES) — Unified Western Grocers, Inc., the largest wholesale grocery distributor in the Western United States, announced improved sales and earnings performance, as well as continued debt reduction for the quarter ended June 28, 2003.

The Los Angeles-based distributor's continuing operations before estimated patronage dividends and income taxes achieved earnings of $5.4 million during the quarter, a 15 percent improvement over the same period last year.  Net earnings approximated $1.2 million for the quarter, compared to a net loss of $1.1 million in the third quarter of 2002. Sales for the quarter increased 3.3 percent from the previous year, reversing a second quarter decline of 3.8 percent.

The results through 39 weeks showed earnings from continuing operations before estimated patronage dividends and income taxes of $16.2 million, which is a 30 percent increase from the prior year. Net earnings year-to-date totaled $3.5 million versus a loss of $3.9 million in the previous year.

As a result of improved operating cash flow ($83 million for the current 39-week period versus $27.4 million during the same period in the previous year), Unified has reduced its total debt by $57 million since the beginning of the fiscal year.

The Company attributed its solid earnings performance to increased productivity at each of the Company's five major distribution centers, a company-wide reduction in expenses, the closure of unprofitable subsidiaries and an emphasis on controlling working capital. Sales growth was driven by a combination of new store openings by existing members and new business obtained during the quarter.

Performance improvements reported in our first two quarters have continued into the third quarter," said Al Plamann, president and chief executive officer, Unified Western Grocers."We are confident that we are on track for positive year-end results.

"In addition to keeping an eye on costs, we are attracting new members into our cooperative and our existing members are opening new stores," Plamann said."All of these factors are having a positive impact on our bottom line."

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 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.