Press Releases

(LOS ANGELES) — Unified Western Grocers, Inc., the largest wholesale grocery distributor in the Western United States, announced improved earnings and a 17.2% improvement in sales for the fiscal quarter ended December 27, 2003 ("2004 period").

The Los Angeles-based distributor achieved earnings of $8.2 million before estimated patronage dividends and income taxes on sales of $823.6 million for the 2004 period, a 33.4% improvement over the fiscal quarter ended December 28, 2002 ("2003 period").

The Company operates primarily within three marketing areas — its Southern California, Northern California and Pacific Northwest Divisions.  Each Division experienced sales growth through a combination of new membership, new stores added by existing members, and same store sales growth.  Additional sales growth also came from increased sales at members' stores resulting from the strike involving three major Southern California grocery retailers.  In total, net sales increased by $120.9 million compared to the 2003 period.

The Company's cash flow from operations remains strong with approximately $18.0 million generated for the 2004 period.  The combination of strong cash flow and increased availability under its new revolving credit facility underscores an improving financial position.  Additionally, the Company's total debt was reduced by $45.4 million to $243.6 million at December 27, 2003 from $289.0 million at December 28, 2002.

The Company credited its solid performance to the combined strength of a growing membership and the quality services provided by the wholesaler that boost its retail members' competitiveness in the marketplace, as well as the continuous improvement in productivity throughout the Company's operations. 

"Forces in the marketplace are favoring independents throughout the Western United States and we are working hard with our member retailers to support this growth in many ways," said Al Plamann, president and chief executive officer, Unified Western Grocers, Inc.  "We are very encouraged by our overall results for the first quarter and are looking to continue the trend throughout the remainder of the 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 2003, 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 and other interim reports filed with the Securities and Exchange Commission.  Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.