Unified Reports Increase in Sales and Earnings

LOS ANGELES, May 19, 2010 (GLOBE NEWSWIRE) -- Unified Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, announced net earnings of $3.1 million for the second fiscal quarter ended April 3, 2010 ("2010 period"), as compared to net earnings of $2.5 million for the second fiscal quarter ended March 28, 2009 ("2009 period"). A combination of sales increases and expense reductions produced these improved results.

The Los Angeles-based cooperative reported net sales of $959.7 million for the 2010 period, as compared to $951.7 million for the 2009 period, an increase of 0.8 percent. The Company attributed its sales increase primarily to the timing of Easter which fell in the second quarter this year versus the third quarter in the prior fiscal year. Aside from the timing of the Easter holiday sales, the Company would have experienced about a 1 percent sales decline due to the current economic conditions.

Earnings before patronage dividends and income taxes increased 20 percent and were $4.9 million for the 2010 period, compared to $4.1 million for the 2009 period. In addition to the benefit of higher sales, earnings increased as a result of continuing emphasis on cost controls within its wholesale operations. These factors are partially offset by increased pension and post retirement expenses and reduced inventory holding gains.

On a year-to-date basis, net earnings increased to $6.8 million (up 7 percent) while sales and earnings before patronage dividends decreased to $1.960 billion (down 1.8 percent) and $15.6 million (down 23 percent) respectively. A major factor impacting the decline in year-to-date earnings before patronage dividends was the unusually high level of food inflation and other vendor-related support during the first quarter of Fiscal 2009 that has not been present thus far in Fiscal 2010.

"Consumer demand for grocery items continues to be mixed in Unified's marketplace," said Alfred A. Plamann, president and chief executive officer, Unified Grocers. "Some of our member retailers are doing quite well, particularly those in locations where consumer spending remains strong. On the other hand, some of our independents are finding this market — and the much hoped-for recovery — to be far more sluggish and distant than they had originally anticipated.

"At Unified Grocers, we are holding our own by making sure we have the right mix of products and services available for our member retailers and by continuing to keep a tight lid on expenses," said Plamann. "The results have been positive — our earnings before patronage dividends for the first half of fiscal 2010 are almost exactly what we budgeted and we expect this trend to continue for the remainder of the year."

Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries, which generated approximately $4.1 billion in sales during fiscal 2009, 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.unifiedgrocers.com and at www.sec.gov/edgar.shtml.

The Unified Grocers, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1214

Safe Harbor Statement

This press release contains forward-looking statements about the future performance of Unified Grocers 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 Grocers, Inc.