1 Unified Western Grocers, Inc. October 10, 2006

2 About Unified Wholesale grocery distributor to Independent Grocers….. Wholesale grocery distributor to Independent Grocers….. …..Largest in Western United States

3 About Unified Mission Mission –Help the Independent Grocer succeed and compete with the self-distributing chains –Build a sustaining entity Functions as a “virtual” chain Functions as a “virtual” chain –Services and benefits available to independents that are used by national chains –Significant market share in areas served

4 About Unified Founded in 1925 by eight merchants who collaborated to buy a carload of soap – using buying power Founded in 1925 by eight merchants who collaborated to buy a carload of soap – using buying power Today Today –Buying Power –Warehousing & Distribution –Technology –Services

5 A Cooperative Owned by our customers (Members) Owned by our customers (Members) Equity capital comes primarily from our Members Equity capital comes primarily from our Members Earnings paid out in patronage dividends Earnings paid out in patronage dividends –Primary mission is competitive source of supply, not ROI

6 Our “Members” Diverse Diverse –Single store operators to 50-store operators –Various formats Upscale Upscale Retailers serving ethnic communities Retailers serving ethnic communities Conventional Conventional –Geographic No restrictions on Membership No restrictions on Membership –No territorial boundaries Some Members compete with each other Some Members compete with each other –Local identities maintained

7 Branding Branding – available, but not required Branding – available, but not required –Some Members form “ad groups” Common banner Common banner Loose collaboration to share in advertising Loose collaboration to share in advertising –Private label products Western Family Western Family Springfield Springfield

8 Products & Services Products Products –Access to 60,000 + products –Local and centralized buying –4 million square feet of warehouse space –Private label Technology Technology –Product ordering –Scanners –Payment systems (credit and debit cards)

9 Products & Services Services Services –Advertising –Merchandising support –Real Estate –Dairy –Insurance –Lending (we are a CDFI)

10 Success Unified’s success and future is integrally tied to the success of the retailers that own us.

11 End of Presentation