Stater Bros. Holdings Inc. Sales and Profits Increase in 1st Quarter

SAN BERNARDINO, Calif., Feb. 12 /PRNewswire/ -- Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the first quarter of fiscal 2008 ended December 30, 2007.

Sales for the thirteen week first quarter ended December 30, 2007, increased 4.3% to $943.0 million compared to $904.4 million for the thirteen weeks ended December 24, 2006. The timing of the Christmas holiday added one more sales day in first quarter of fiscal 2007 compared to the first quarter of fiscal 2008. Christmas day, the only day that the Company's stores are closed, fell in the second quarter of fiscal 2007 and in the first quarter of fiscal 2008. After taking into consideration the effect of Christmas day, like store sales increased 3.3% for the thirteen weeks ended December 30, 2007 compared to the thirteen weeks ended December 24, 2006.

The Company reported net income for the thirteen week first quarter ended December 30, 2007 of $10.8 million compared to net income of $9.9 million for the thirteen week first quarter ended December 24, 2006.

Brown said; "The first quarter results were in line with management's projections as we remain committed to being the low price leader while providing a friendly and satisfying shopping experience to our "Valued Customers" on each and every one of their visits to our Supermarkets. Our transition into our new Corporate Office and Distribution Center is on schedule and moving along as planned."

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 164 supermarkets through its wholly owned subsidiary, Stater Bros. Markets.

For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 733-5000.

                           STATER BROS. HOLDINGS INC.                      Condensed Consolidated Balance Sheets                                 (In thousands)                                    Unaudited                                                  09/30/07          12/30/07    Assets       Current assets          Cash and cash equivalents               $277,062          $209,473          Restricted cash                            8,121             5,621          Receivables, net                          46,391            53,818          Inventories                              202,073           212,875          Other                                     34,965            35,203       Total current assets                        568,612           516,990       Property and equipment, net                 629,644           665,854       Deferred debt issuance costs, net            17,671            16,869       Other                                        54,351            56,000    Total assets                                $1,270,278        $1,255,713    Liabilities and stockholder's equity       Current liabilities          Accounts payable                        $187,978          $184,979          Accrued expenses and other           liabilities                             142,597           113,577          Current portion of capital           lease obligations                         1,008             1,044       Total current liabilities                   331,583           299,600       Long-term debt                              810,000           810,000       Capital lease obligations, less        current portion                              6,285             6,010       Other long-term liabilities                 113,131           120,073       Total stockholder's equity                    9,279            20,030    Total liabilities and stockholder's     equity                                     $1,270,278        $1,255,713                           STATER BROS. HOLDINGS INC.                   Condensed Consolidated Statements of Income                                 (In thousands)                                    Unaudited                                                  13 Weeks          13 Weeks                                                    Ended             Ended                                                  12/24/06          12/30/07    Sales                                         $904,354          $943,030    Gross profit                                   241,890           244,429    Operating expenses:       Selling, general and           administrative expenses                 201,801           204,318       Depreciation and amortization                11,884            12,908    Total operating expenses                       213,685           217,226    Operating profit                                28,205            27,203    Interest income                                  2,826             2,391    Interest expense                               (14,285)          (13,581)    Other income (expenses), net                      (171)            1,875    Income before income taxes                      16,575            17,888    Income taxes                                     6,673             7,137    Net income                                      $9,902           $10,751     Contact:     Phil Smith     Stater Bros. Holdings Inc.     (909) 733-5287