The Los Angeles-based distributor achieved earnings of $25.2 million from continuing operations before patronage dividends and income taxes for the 2003 period,  a 21 percent improvement over the prior year.   The Company's continuing operations generated earnings of $5.3 million, net of tax, for the 2003 period compared to $2.0 million in the prior year.  Total net earnings for the prior year included the Company's results from discontinued operations, which resulted in a net loss of $38.6 million for the year ended September 28, 2002 ("2002 period").

The Company's continuing operations generated cash flows from operating activities of  $88.5 million for the 2003 period, up substantially from $23.9 million in the previous year.  The increased availability of operating cash was used to reduce total debt by $61.4 million since the beginning of the 2003 period.  The combination of improved earnings, the Company's ongoing Equity Enhancement program and patronage dividends reinvested in the Company increased shareholders' equity to $102.1 million for the 2003 period compared to $87.0 million in the prior year.

The Company attributed its solid earnings performance to the combined strength of a growing membership and the quality services provided by the wholesaler that enhance its retail members' competitiveness in the marketplace, as well as a continuing productivity improvement program at each of the Company's five major distribution centers.  The Company also achieved improved profitability in its specialty food and financing subsidiaries.  Sales growth was driven by a combination of new business obtained during the year, existing members' expansion into new store locations, and increased sales of meat, produce and other perishable products to retailers.

Further, on December 5, 2003, the Company refinanced its revolving credit agreement with a $225 million secured credit facility replacing its previous $200 million revolving credit agreement that was set to expire in September 2004.  The new credit facility, which extends to December 2007, is led by Harris Trust and Savings Bank, Bank of America, N.A., General Electric Capital Corporation and Wells Fargo Bank, N.A.  Because of improved performance by the Company, the new facility has a lower interest rate spread while the remaining terms are substantially the same as the previous credit agreement.

"We are very pleased with our 2003 results," said Al Plamann, president and chief executive officer, Unified Western Grocers, Inc.  "The growth of our retailers' businesses, the addition of new members and the financial strength of our company have positioned us for continued success in 2004.  Last year's weak economy, as well as other national and regional concerns, has not affected our ability to generate positive year-end results for our member shareholders.

"Additionally, the successful negotiation of the new credit facility, combined with our existing capital, will allow us to focus on meeting customer needs and to support business operations," said Plamann.  "This facility represents the confidence that the participating banks have in the future of the Company."

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-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.