Smart & Final 8-K Smart & Final Reports 5.2 Percent Sales Increase

Exhibit 99

	Contact:	Randall Oliver(media)
		(323) 869-7607
		randall.oliver@smartandfinal.com
		Richard Phegley(investors)
		(323) 869-7779
		rick.phegley@smartandfinal.com

SMART & FINAL REPORTS 5.2 PERCENT SALES INCREASE

FOR THIRD QUARTER 2005

• 3.3 Percent Comparable Sales Growth In Third Quarter

• Year-to-Date Operating Cash Flow of $57.5 Million

LOS ANGELES, November 1, 2005 –Smart & Final Inc. (NYSE – SMF) today reported sales for its sixteen-week third quarter ended October 9, 2005 of $634.4 million, an increase of $31.2 million, or 5.2 percent, over third quarter 2004 sales of $603.2 million. Third quarter 2005 comparable store sales increased by 3.3 percent over third quarter 2004.

As previously announced, the company has reached a preliminary settlement in a class action litigation matter and a related pre-tax charge of $19.0 million is included in income from operations for the third quarter 2005. Including the litigation charge, income from continuing operations was $1.0 million, or $0.03 per diluted share. Adjusting for the exclusion of this charge, income from continuing operations for the third quarter of 2005 was $12.3 million, or $0.38 per diluted share, compared to $12.0 million or $0.37 per diluted share for the third quarter 2004 (see the attached Non-GAAP Financial Measures schedule below).

Etienne Snollaerts, president and chief executive officer stated, “Our third quarter results reflect a continuing solid market position for our stores, with overall sales growth of more than 5 percent. Despite a strong competitive environment, on a year-to-year basis we were able to increase both the number of customer transactions and average transaction amount, in both of our store formats.”

Snollaerts continued, “In the third quarter we continued to struggle with higher than planned distribution costs which have impacted our gross margin rate throughout 2005. As part of our plan to address distribution inefficiencies, we are continuing the implementation of a new supply chain management system to improve the accuracy and timeliness of warehouse operations. While operational issues associated with this implementation impacted sales and store operating expense rates in the third

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Smart & Final Inc. Third Quarter 2005

quarter, we view the near-term challenges as essential to building a more flexible, higher capacity distribution system to support our future sales growth. Our operational performance has steadily improved since the initial phase of the supply chain system implementation, with current warehouse shipment rates in line with the prior year average. Even with these challenges in the third quarter, our income from continuing operations, excluding the litigation charge, surpassed the prior year’s results.”

Gross margin from continuing operations increased $0.7 million, or 0.6 percent, to $109.4 million for the third quarter of 2005 as compared to $108.7 million for the prior year third quarter. As a percentage of sales, gross margin was 17.2 percent for third quarter 2005 compared to 18.0 percent for third quarter 2004. The year-to-year decrease in gross margin rate was primarily due to increased distribution costs.

As a percentage of sales, operating and administrative expenses decreased to 13.7 percent for the 2005 third quarter from 14.2 percent for the 2004 third quarter. The decrease as a percentage of sales was largely attributable to lower incentive compensation costs, partially offset by increased store operating costs and information system costs. Total operating and administrative expenses from continuing operations were $86.9 million for the third quarter of 2005, as compared to $85.5 million for the prior year third quarter.

Interest expense decreased to $2.9 million for the 2005 third quarter as compared to $3.4 million for the prior year third quarter, primarily as a result of lower debt outstanding and lower effective interest rate. Year to date cash flow provided by operating activities increased to $57.5 million in 2005, compared to $41.9 million in the prior year to date period.

Three new stores opened during the 2005 third quarter, in central Los Angeles, Calif., Signal Hill, Calif. and Valencia, Calif., bringing the 2005 year to date new store openings to a total of seven. Additionally, one store was relocated during the quarter in Hemet, Calif. The company operated 241 stores at the end of the third quarter 2005 compared with 231 stores at the end of the 2004 third quarter.

Founded in 1871 in downtown Los Angeles, Smart & Final Inc. currently operates 241 non-membership warehouse stores for food and foodservice supplies in California, Oregon, Washington, Arizona, Nevada, Idaho and northern Mexico. For more information, visit the company’s website at www.smartandfinal.com.

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Smart & Final Inc. Third Quarter 2005

A telephone conference call with Smart & Final’s senior management will be held on Wednesday November 2, 2005 at 8:00 a.m. Pacific Standard Time. The conference call is available in a listen-only mode through www.CCBN.com. Replays of the conference call will also be available.

Forward-Looking and Cautionary Statements

This Smart & Final press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and other expressions of management’s belief or opinion which reflect its current understanding or belief with respect to such matters. Such statements are subject to certain risks and uncertainties, including known and unknown factors as included in the company’s periodic filings with the Securities and Exchange Commission that could cause actual results to differ materially and adversely from those projected. All of these forward-looking statements are based on estimates and assumptions made by management of the company, which although believed to be reasonable, are inherently uncertain and difficult to predict; therefore, undue reliance should not be placed upon such statements. Current and future operating trends and results may be impacted by important factors, including the implementation of key information system initiatives and their potential effect on company operations. There can be no assurance that the company will not incur new or additional unforeseen costs in connection with the ongoing conduct of its business. Accordingly, any forward-looking statements included herein do not purport to be predictions of future events or circumstances and may not be realized. Except as specifically set forth herein, the company undertakes no obligation to update any such forward-looking or other statement.

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SMART & FINAL INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share amounts)

	October 9, 2005			January 2, 2005
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	42,131		$	28,672
Accounts receivable, less allowance for doubtful accounts of $239 in 2005 and $254 in 2004		16,285			16,717
Inventories		144,949			142,360
Prepaid expenses and other current assets		19,247			16,428
Deferred tax assets		11,646			11,646
Assets of discontinued operations		2,129			2,129
Total current assets		236,387			217,952
Property, plant and equipment:
Land		71,869			66,275
Buildings and improvements		62,583			62,583
Leasehold improvements		130,100			125,206
Fixtures and equipment		207,427			194,554
		471,979			448,618
Less – Accumulated depreciation and amortization		217,195			197,443
Net property, plant and equipment		254,784			251,175
Assets under capital leases, net of accumulated amortization of $7,802 in 2005 and $7,669 in 2004		1,604			2,085
Goodwill		34,775			34,775
Deferred tax assets		17,295			18,237
Equity investment in joint venture		7,098			6,258
Cash held in real estate trust		119			116
Other assets		65,883			56,833
Total assets	$	617,945		$	587,431
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and capital leases	$	1,026		$	1,353
Accounts payable		93,851			83,103
Accrued salaries and wages		16,962			20,166
Other accrued liabilities		55,066			47,863
Liabilities of discontinued operations		1,040			2,476
Total current liabilities		167,945			154,961
Long-term liabilities:
Obligations under capital leases		2,030			2,638
Bank debt		25,000			25,000
Notes payable		53,298			53,396
Notes payable to affiliate		33,125			33,133
Other long-term liabilities		32,571			30,324
Postretirement and postemployment benefits		36,886			35,566
Total long-term liabilities		182,910			180,057
Commitments and contingencies Stockholders’ equity:
Preferred stock, $1 par value (authorized 10,000,000 shares; no shares issued)		—			—
Common stock, $0.01 par value (authorized 100,000,000 shares; 31,724,845 shares issued and outstanding in 2005 and 30,752,118 in 2004)		317			308
Additional paid-in capital		228,195			219,768
Retained earnings		58,266			46,157
Accumulated other comprehensive loss		(12,168	)		(12,361	)
Notes receivable for common stock		(18	)		(75	)
Treasury stock, at cost, 555,803 shares in 2005 and 86,475 shares in 2004		(7,502	)		(1,384	)
Total stockholders’ equity		267,090			252,413
Total liabilities and stockholders’ equity	$	617,945		$	587,431

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SMART & FINAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share amounts)

	Sixteen Weeks Ended						Forty Weeks Ended
	October 9, 2005			October 3, 2004			October 9, 2005			October 3, 2004
	(Unaudited)						(Unaudited)
Sales	$	634,371		$	603,161		$	1,546,101		$	1,484,428
Cost of sales, buying and occupancy		524,996			494,466			1,288,819			1,225,567
Gross margin		109,375			108,695			257,282			258,861
Operating and administrative expenses		86,903			85,470			211,444			203,932
Litigation charge		19,000			—			19,000			—
Income from operations		3,472			23,225			26,838			54,929
Interest expense, net		2,882			3,448			7,262			10,859
Income from continuing operations before income taxes		590			19,777			19,576			44,070
Income tax provision		(136	)		(7,908	)		(7,585	)		(17,629	)
Equity earnings of joint venture		497			131			652			485
Income from continuing operations		951			12,000			12,643			26,926
Discontinued operations, net of tax		(128	)		(302	)		(534	)		(922	)
Net income	$	823		$	11,698		$	12,109		$	26,004
Earnings (loss) per common share:
Earnings per common share from continuing operations	$	0.03		$	0.40		$	0.41		$	0.90
Loss per common share from discontinued operations		—			(0.01	)		(0.02	)		(0.03	)
Earnings per common share	$	0.03		$	0.39		$	0.39		$	0.86
Weighted average common shares		30,883,785			30,248,982			30,768,305			30,076,409
Earnings (loss) per common share, assuming dilution:
Earnings per common share, assuming dilution, from continuing operations	$	0.03		$	0.37		$	0.39		$	0.85
Loss per common share, assuming dilution, from discontinued operations		—			(0.01	)		(0.02	)		(0.03	)
Earnings per common share, assuming dilution	$	0.03		$	0.36		$	0.38		$	0.82
Weighted average common shares and common share equivalents		32,229,174			32,183,765			32,122,664			31,718,478

* Totals may not aggregate due to rounding

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SMART & FINAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AS A PERCENTAGE OF SALES

	Sixteen Weeks Ended				Forty Weeks Ended
	October 9, 2005		October 3, 2004		October 9, 2005		October 3, 2004
	(Unaudited)				(Unaudited)
Sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales, buying and occupancy	82.8		82.0		83.4		82.6
Gross margin	17.2		18.0		16.6		17.4
Operating and administrative expenses	13.7		14.2		13.7		13.7
Litigation charge	3.0		—		1.2		—
Income from operations	0.5		3.9		1.7		3.7
Interest expense, net	0.5		0.6		0.5		0.7
Income from continuing operations before income taxes	0.1		3.3		1.3		3.0
Income tax provision	—		(1.3	)	(0.5	)	(1.2	)
Equity earnings of joint venture	0.1		—		—		—
Income from continuing operations	0.1		2.0		0.8		1.8
Discontinued operations, net of tax	—		(0.1	)	—		(0.1	)
Net income	0.1	%	1.9	%	0.8	%	1.8	%

* Totals may not aggregate due to rounding.

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SMART & FINAL INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

	Forty Weeks Ended
	October 9, 2005			October 3, 2004
	(Unaudited)
Cash Flows from Operating Activities:
Income from continuing operations	$	12,643		$	26,926
Adjustments to reconcile income from continuing operations to net cash provided by continuing activities:
Non-cash litigation charge, net of tax		11,373			—
Gain on disposal of property, plant and equipment		(64	)		(373	)
Depreciation		14,066			13,854
Amortization		10,622			9,892
Amortization of deferred financing costs		220			1,326
Deferred tax provision		943			625
Equity earnings of joint venture		(652	)		(485	)
Decrease (increase) in:
Accounts receivable		527			2,672
Inventories		(2,589	)		(12,759	)
Prepaid expenses and other assets		2,471			7,673
Increase (decrease) in:
Accounts payable		10,749			3,502
Accrued salaries and wages		(2,921	)		3,548
Other accrued liabilities		2,060			(11,108	)
Net cash provided by continuing activities		59,448			45,293
Net cash used in discontinued activities		(1,970	)		(3,439	)
Net cash provided by operating activities		57,478			41,854
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment		(34,678	)		(15,690	)
Proceeds from disposal of property, plant and equipment		37			4,375
Investment in capitalized software		(9,088	)		(8,935	)
Change in cash held in real estate trust		(3	)		14,241
Other		(420	)		5,532
Net cash used in continuing activities		(44,152	)		(477	)
Net proceeds from divestitures		—			325
Net cash provided by discontinued activities		—			226
Net cash (used in) provided by investing activities		(44,152	)		74
Cash Flows from Financing Activities:
Payments on bank line of credit		(20,000	)		(35,000	)
Borrowings on bank line of credit		20,000			5,000
Payments on notes payable		(1,040	)		(1,455	)
Payments in connection with debt amendments		(215	)		—
Proceeds from issuance of common stock, net of costs		1,388			4,565
Net cash provided by (used in) financing activities		133			(26,890	)
Increase in cash and cash equivalents		13,459			15,038
Cash and cash equivalents at beginning of the period		28,672			36,592
Cash and cash equivalents at end of the period	$	42,131		$	51,630

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SMART & FINAL INC.

NON-GAAP FINANCIAL MEASURES

The following schedule contains supplemental information regarding our income from continuing operations for the sixteen and forty weeks ended October 9, 2005 and October 3, 2004, as adjusted for the exclusion of expenses associated with the litigation charge. This financial information is a non-GAAP financial measure as defined by SEC Regulation G. The GAAP financial measure most directly comparable is income from continuing operations unadjusted for these items. The reconciliation of each of the non-GAAP financial measures is as follows:

SMART & FINAL INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Sixteen Weeks Ended

(dollars in thousands, except per share amounts)

	October 9, 2005									October 3, 2004 GAAP (a)
	GAAP (a)			Adjustments			Non-GAAP (b)
Sales	$	634,371		$	—		$	634,371		$	603,161
Cost of sales, buying and occupancy		524,996			—			524,996			494,466
Gross margin		109,375			—			109,375			108,695
Operating and administrative expenses		86,903			—			86,903			85,470
Litigation charge		19,000			(19,000	) (c)		—			—
Income from operations		3,472			19,000			22,472			23,225
Interest expense, net		2,882			—			2,882			3,448
Income from continuing operations before income taxes		590			19,000			19,590			19,777
Income taxes		(136	)		(7,627	)		(7,763	)		(7,908	)
Equity earnings in unconsolidated subsidiary		497			—			497			131
Income from continuing operations	$	951		$	11,373		$	12,324		$	12,000
Earnings per common share, assuming dilution, from continuing operations	$	0.03					$	0.38		$	0.37

(a) Reflects operating results from continuing operations in accordance with U.S. generally accepted accounting principles (“GAAP”).

(b) Non-GAAP amounts exclude expenses associated with the litigation charge.

(c) Amount represents expenses associated with the litigation charge.

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SMART & FINAL INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Forty Weeks Ended

(dollars in thousands, except per share amounts)

	October 9, 2005									October 3, 2004 GAAP (a)
	GAAP (a)			Adjustments			Non-GAAP (b)
Sales	$	1,546,101		$	—		$	1,546,101		$	1,484,428
Cost of sales, buying and occupancy		1,288,819			—			1,288,819			1,225,567
Gross margin		257,282			—			257,282			258,861
Operating and administrative expenses		211,444			—			211,444			203,932
Litigation charge		19,000			(19,000	) (c)		—			—
Income from operations		26,838			19,000			45,838			54,929
Interest expense, net		7,262			—			7,262			10,859
Income from continuing operations before income taxes		19,576			19,000			38,576			44,070
Income taxes		(7,585	)		(7,627	)		(15,212	)		(17,629	)
Equity earnings in unconsolidated subsidiary		652			—			652			485
Income from continuing operations	$	12,643		$	11,373		$	24,016		$	26,926
Earnings per common share, assuming dilution, from continuing operations	$	0.39					$	0.75		$	0.85

(a) Reflects operating results from continuing operations in accordance with U.S. generally accepted accounting principles (“GAAP”).

(b) Non-GAAP amounts exclude expenses associated with the litigation charge.

(c) Amount represents expenses associated with the litigation charge.

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