(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 October 1, 2005 ("2005 period").

The Los Angeles-based cooperative achieved net earnings of $10.8 million for the 2005 period, an increase of 46.1 percent over the fiscal year ended October 2, 2004 ("2004 period").  Earnings before patronage dividends and income taxes were $38.7 million for the 2005 period, compared to $32.7 million for the 2004 period.

Sales for the 2005 period were $2.9 billion, down slightly from $3.0 billion during the 2004 period.  The decrease was due, in part, to a 53-week fiscal year in 2004 compared to a 52-week year for fiscal 2005, additional sales in the 2004 period resulting from the strike/lockout against three Southern California retail grocery chains, and the acquisition of one of Unified's customers by a competitor that manufactures and distributes its own products.  The decrease in sales was partially offset by the opening of new stores by existing retail members of Unified.  Patronage dividends to the Company's members increased to $21.4 million for the 2005 period, up more than 3 percent over the 2004 period.  The Company's strong performance reflects improvements in the Company's business and the results of continued efforts at controlling costs.

Unified Western Grocers' strong earnings and operations performance generated cash flow from operating activities of approximately $20.0 million for the 2005 period and contributed to the Company's ability to reduce debt during the period. The Company reduced total outstanding debt to $167.5 million at October 1, 2005 from $201.3 million at October 2, 2004.  Since 2002, the company has reduced its outstanding debt by $138.4 million – and has done so without selling any significant corporate assets.

"We are extremely pleased with our results for 2005," said Al Plamann, president and chief executive officer, Unified Western Grocers.  "While our sales for the year were down slightly, we improved our productivity throughout our distribution network, continued to effectively control expenses and benefited from a favorable economic environment.  Overall, we were very successful in our efforts.

"As we look ahead, we believe that our retail members are well positioned for significant growth and success in 2006," said Plamann.  "We will support that growth by providing the products and services that consumers are demanding and by continuing to maintain one of the most efficient distribution networks in the grocery industry."

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 $2.9 billion in sales during fiscal 2005, 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.