"The story for Unified in 2003 was positive and a continuation of our turnaround performance of a year ago," Plamann told attendees.  "As we progress further into 2004, it's clear that we are gaining momentum in the food industry marketplace."

Reporting on the company's progress during the fiscal year ended September 27, 2003, Plamann said that the company 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.  He said that all of Unified's business units and subsidiaries performed at or above 2002 levels.

Plamann told shareholders that actions taken by the Board of Directors and management in 2003 strengthened the company's financial position.  Among the actions he cited were an Equity Enhancement program, which is helping to provide the company with the capital needed to comfortably operate the business, a recent refinancing of the company's $225 million secured credit facility with more favorable terms, and a reduction of the firm's outstanding debt by $61.4 million during fiscal 2003.

Unified continued to remove costs from its business process in 2003, according to Plamann.  In the four years since the merger that created the company, Unified has cut approximately $45 million in overall costs out of its business process.  This figure, Plamann said, is in addition to $45 million in synergies that the company was able to remove during the first three years after the merger.

Plamann told shareholders that Unified expanded its business base in 2003.  He said the company grew its sales volume by bringing new members into the cooperative, providing support to existing members who were remodeling or opening new stores and by helping retailers to add new products to meet consumer demand.

Looking to the future, Plamann said that Unified is putting new emphasis on perishable products and other items generally found on the perimeter of retail grocery stores.  In addition to adding products that the company does not presently offer, Unified is creating a new distribution model that will allow orders to be filled and delivered more efficiently than ever before.

"We are confident that this initiative will not only help retailers improve their competitiveness in the marketplace," said Plamann, "it will funnel more sales through Unified and enhance our ability to serve as a single source for our members and customers."

Unified Western Grocers, Inc. is a retailer-owned grocery distributor that supplies independent retailers throughout the Western United States.  Unified and its subsidiaries, which generated approximately $2.8 billion in sales during the 2003 fiscal year, offer independent retailers all the resources they need to compete in the supermarket industry.