Press Releases

(LOS ANGELES) — Unified Grocers¹ ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, reported a sharp increase in sales and operating income for the fiscal quarter ended December 29, 2007 ("2008 period") over the fiscal quarter ended December 30, 2006 ("2007 period").  This quarter reflects the results of operations from the Company's recently acquired business from Associated Grocers, Inc. Seattle, Washington, which was finalized on the first day of the 2008 fiscal year.

The Los Angeles-based cooperative achieved net sales of $1.05 billion for the 2008 period as compared to $781.4 million for the 2007 period, a 34.7 percent increase.  Unified attributed 82 percent of this increase from the sales of the acquired Seattle operation.  The Company also experienced 6.4 percent growth in its existing business before considering the impact of the transaction.

Sales growth and improved operating performance were the primary contributors to a 38.0 percent increase in the Company's operating income, a 45.7 percent increase in earnings before patronage dividends and income taxes, and a 78.2 percent increase in net earnings.  Operating performance was aided by favorable workers compensation adjustments in the Company's wholesale operations and a positive contribution from the Seattle operation.

"In spite of a weakening economy, sales to our existing base of customers continue to be very strong," said Alfred A. Plamann, president and chief executive officer, Unified Grocers.  "This is a good sign because it means that we are providing the right products to our retail customers at precisely the right time.

"On top of this, sales to our newest customers, the former members and customers of Associated Grocers, were also very strong during the period," Plamann said.  "We are particularly proud of this accomplishment because it means we have done a very good job of integrating our new Seattle operations into the whole of our business in a short period of time.  We are going to continue to work hard to ensure that this positive business trend continues in the future."

Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States.  Unified and its subsidiaries, which generated approximately $3.1 billion in sales during fiscal 2007, 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.

¹Unified Western Grocers, Inc. recently changed its name to “Unified Grocers, Inc.” and is doing business as “Unified Grocers.”  Shareholders approved the name change Feb. 12, 2008 at the Company’s annual meeting and the firm is currently pursuing final regulatory approval for the change.

Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Unified Grocers 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.