Press Releases

(LOS ANGELES) — Unified Western Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the Western United States, reported strong earnings for the fiscal year ended September 30, 2006 ("2006 period").

The Los Angeles-based cooperative achieved net earnings of $16.1 million for the 2006 period, an increase of 49.2 percent over the fiscal year ended October 1, 2005 ("2005 period"). Earnings before patronage dividends and income taxes were $45.0 million for the 2006 period, compared to $38.7 million for the 2005 period. Sales for the 2006 period were $2.95 billion, up three percent from the 2005 period.

The Company attributed its 2006 performance to new stores opened by its members, continued sales growth in the Company's Perishables division and Market Centre subsidiary (specialty products and services). Operating income for the 2006 period was nearly 11 percent higher than the prior year and the exchange value of the members' shares in the Company at year-end was $222.82 per share, an increase of 13.8% over the 2005 period.

During fiscal 2006, Unified also completed an amendment and extension for certain of the Company's fixed rate senior secured notes with John Hancock Life Insurance Company and in December 2006, completed an amendment and extension of its secured revolving credit facility with a group of banks headed by BMO (formerly Harris Trust and Savings Bank). Both refinancing agreements resulted in favorable terms and cost savings for Unified.

"While 2005 was an exceptional year for our Company, 2006 was even better with net earnings increasing nearly 50 percent," said Alfred A. Plamann, president and chief executive officer, Unified Western Grocers. "This is the third consecutive year that Unified's net earnings have increased by more than 40 percent over the prior year – a truly remarkable achievement for an industry and supply channel that is generally thought to be stagnant and mature.

"Looking ahead, we believe that our retail members are well-positioned to capitalize on new opportunities in the marketplace and will continue to expand and grow their businesses by differentiating themselves from other retail competitors," said Plamann. "At Unified, we have developed several new strategies and programs that are supporting this growth at retail and are helping our members capture market share in their respective trading areas."

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 $3.0 billion in sales during fiscal 2006, offer independent retailers all the resources they need to compete in the supermarket industry.

An online version of Unified's Form 10-K, 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-K 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. Unified Western Grocers, Inc.