Press Releases

(LOS ANGELES) — Unified Western Grocers, Inc., the largest wholesale grocery distributor in the Western United States, announced improved earnings and a 16.5% improvement in sales for the fiscal quarter ended March 27, 2004 ("2004 period") over the fiscal quarter ended March 29, 2003 ("2003 period").

The Los Angeles-based distributor achieved earnings of $7.7 million before estimated patronage dividends and income taxes, a 67.1% improvement over the 2003 period, on sales of $739.2 million for the 2004 period.

The Company achieved earnings of $15.9 million before estimated patronage dividends and income taxes, a 47.8% improvement over the prior year, on sales of $1,537.4 million for the 26-week period ended March 27, 2004 ("26-week 2004 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.  This strike was settled February 29, 2004.  In total, net sales increased by $223.5 million compared to the 26-week period ended March 29, 2003.

The Company's cash flow from operations remains strong with approximately $42.8 million generated for the 26-week 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 outstanding debt and other financing arrangements were reduced by $22 million to $222.4 million at March 27, 2004 from $244.4 million at  September 27, 2003.

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.

"We are extremely pleased with our results for the second quarter," said Al Plamann, president and chief executive officer, Unified Western Grocers.  "While we know part of the sales increase we experienced was due to the labor disturbance in Southern California, it's important to note that many of our member retailers not affected by the strike also experienced significant gains during the quarter.  That's a very positive sign because it shows our growth is not confined to a certain area or tied to a specific event."

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.