The Los Angeles-based distributor achieved earnings of $8.3 million before estimated patronage dividends and income taxes, a 52.9% improvement over the 2003 period, on sales of $721.1 million for the 2004 period.

The Company achieved earnings of $24.2 million before estimated patronage dividends and income taxes, a 49.5% improvement over the prior year, on sales of $2,258.5 million for the 39-week period ended June 26, 2004 ("39-week 2004 period").

The Company operates primarily within three marketing areas — its Southern California, Northern California and Pacific Northwest regions.  Each region experienced sales growth through a combination of new membership, new stores added by existing members, and same store sales growth.  Additionally, many of the Company's Southern California member retailers retained sales volume they experienced during the strike against three major Southern California grocery companies, which settled on Feb. 29, 2004.  In the 39-week period ended June 26, 2004, Unified's net sales increased by $252.8 million, compared to the 39-week period ended June 28, 2003.

The Company's cash flow from operations remains strong with approximately $62.9 million generated for the 39-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 $33.7 million to $210.8 million at June 26, 2004 from $244.5 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 very pleased with the results from our third quarter and the fiscal year-to-date," said Al Plamann, president and chief executive officer, Unified Western Grocers.  "In addition to increasing our profitability by broadening our product selection and remaining vigilant about costs, many of our member retailers were successful in retaining additional business they received during the strike.  Clearly, many consumers have decided that there's a lot to like about the independent retailers to which they've recently migrated.  We believe that's a very good sign for the future of our supply channel."

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.

 Unified Western Grocers, Inc.