(LOS ANGELES) — Unified Western Grocers, Inc., the largest wholesale grocery distributor in the Western United States, announced improved earnings for the fiscal quarter ended April 2, 2005 ("2005 period") over the fiscal quarter ended March 27, 2004 ("2004 period").

The Los Angeles-based cooperative achieved net earnings of $2.1 million for the 2005 period, an increase of 76.3 percent over the prior year.  Earnings before patronage dividends and income taxes were $7.6 million for the 2005 period compared to $7.7 million for the 2004 period.  Sales were down 5.8 percent compared to the 2004 period, during which the Company experienced higher sales due to a strike/lockout at three major retail grocery chains in Southern California.  Excluding the effects of the strike/lockout, Company sales increased $11.3 million or 1.5 percent over the 2004 period.  The Company's continuing strong performance reflects improvements in gross margin and the results of continued efforts at controlling costs.

The results through 26 weeks showed earnings before estimated patronage dividends and income taxes of $21.2 million, which is a 33.5 percent increase from the prior year.  Net earnings year-to-date totaled $6.0 million versus $3.2 million in the previous year or an 87.5 percent increase.

The Company's strong earnings and operations performance generated cash flow of approximately $28.3 million for the 26 weeks ended April 2, 2005 and contributed to the Company's ability to reduce debt during the period. The Company reduced total outstanding debt to $171.8 million at April 2, 2005 from $201.3 million at October 2, 2004, the end of our prior fiscal year. 

"We are pleased with our results for the second quarter," said Al Plamann, president and chief executive officer, Unified Western Grocers, Inc.  "In a very competitive environment – particularly in Southern California – our core business experienced a sales increase of 1.5 percent over the 2004 period.  That's very encouraging because it shows that our independent retailers are holding their own against some very aggressive competition.

"Our earnings also continue to remain strong, thanks largely to investments that we have made in our infrastructure and continual focus on cost reductions," said Plamann.  "With the implementation of new technologies and several process enhancements, we continue to see dramatic improvements in our entire distribution system."

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 billion in sales during fiscal 2004, 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.