Smart & Final 8-K Smart & Final Reports Continued Sales Growth

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 CONTINUED SALES GROWTH

IN 2006 SECOND QUARTER

•      Second Quarter 2006 Sales Increase 2.0 Percent

•      Second Quarter Income from Continuing Operations of $5.8 Million

•      Assessment of Strategic Alternatives Ongoing

LOS ANGELES, July 11, 2006 –Smart & Final Inc. (NYSE – SMF) today reported sales for its twelve-week second quarter ended June 18, 2006 of $493.7 million, an increase of $9.6 million, or 2.0 percent, over second quarter 2005 sales of $484.1 million. Income from continuing operations was $5.8 million for the second quarter 2006, or $0.18 per diluted share, compared with $8.2 million, or $0.26 per diluted share, for the second quarter 2005. Included in the operating results for the 2006 second quarter were $0.5 million net of tax, or $0.02 per diluted share, of costs associated with the company’s assessment of strategic alternatives. Comparable store sales growth for the second quarter was a negative 0.3 percent, unadjusted for cannibalization of comparable store sales by new stores opened in the past 12 months.

Etienne Snollaerts, president and chief executive officer, stated, “Our second quarter results reflect the continuation of our strong store growth program, which as anticipated has increased operating costs, and also unexpectedly weak demand in the spring season among certain classes of business customers. In the second quarter, the contribution from continued strong gross margin rates and improving trends in distribution costs partially offset the increase in costs resulting from our store development program.”

Snollaerts added, “By utilizing our extensive customer database we’ve identified target groups of customers and have developed strong incentive programs to re-build sales momentum with these key businesses as well as with targeted groups of household customers. We’re continuing to make progress during 2006 in controlling distribution costs to better leverage our sales growth. We’re also pursuing

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Smart & Final Inc. Second Quarter 2006

store development and although we did not have any new store openings in the second quarter, we have stores in development for opening during the balance of 2006.”

Gross margin from continuing operations increased $1.5 million, or 1.9 percent, to $81.3 million for the second quarter of 2006 as compared with $79.7 million for the prior year second quarter. As a percentage of sales, gross margin was 16.5 percent for both second quarter 2006 and 2005. Although the aggregate year-to-year gross margin rate did not change, in the second quarter 2006 the company realized higher gross profit contribution from increased sales, which was offset by higher year-to-year distribution costs and the impact of new stores.

As a percentage of sales, operating and administrative expenses increased to 14.1 percent for the 2006 second quarter from 13.3 percent for the 2005 second quarter. Operating and administrative expenses from continuing operations increased $5.4 million, or 8.4 percent, to $69.7 million for the second quarter of 2006 as compared with $64.3 million for the prior year second quarter. The increase in dollars and as a percentage of sales was largely attributable to increased store operating costs, increased information systems costs, and costs associated with the company’s assessment of strategic alternatives.

Interest expense increased to $2.5 million for the 2006 second quarter as compared with $2.2 million for the prior year quarter, as a result of higher average debt outstanding and higher rates. At the end of the second quarter 2006 the outstanding balance on the revolving credit facility was $35.0 million compared with $30.0 million at the end of the second quarter 2005.

Cash flow from operating activities reflected cash generation of $4.2 million for the twenty-four weeks ended June 18, 2006 compared with cash generation of $31.1 million for the prior year twenty-four week period. The reduction in net cash generated from the prior twenty-four week period was primarily due to cash utilized for a class-action litigation settlement, and from increased investment in store inventories including seasonal merchandise, and associated working capital.

The company did not open any new stores during the 2006 second quarter. The company operated 250 stores at the end of the second quarter 2006 compared with 238 stores at the end of the 2005 second quarter.

As previously announced, the company has engaged Goldman Sachs & Co. to act as financial advisor to the company in studying potential strategic alternatives, in light of an announcement by the company’s majority shareholder, Casino Guichard-Perrachon S.A., that it is studying the potential sale of non-core portfolio assets. The company’s assessment of strategic alternatives is ongoing and through the end of the 2006 second quarter $0.9 million of associated pre-tax costs had been incurred. Also as previously stated, there can be no assurance as to the timing of this process, the future costs involved, or that any specific transaction will result.

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Smart & Final Inc. Second Quarter 2006

Founded in 1871 in downtown Los Angeles, Smart & Final Inc. currently operates 250 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.

A telephone conference call with Smart & Final’s senior management will be held on Wednesday July 12, 2006 at 8:00 a.m. Pacific Daylight 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, including its exploration of potential strategic alternatives. 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.

SMART & FINAL INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share amounts)

	June 18, 2006			January 1, 2006
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	39,363		$	31,887
Accounts receivable, less allowance for doubtful accounts of $239 in 2006 and $273 in 2005		13,754			18,410
Inventories		161,884			158,553
Prepaid expenses and other current assets		10,130			16,333
Deferred tax assets		13,356			13,036
Assets held for sale		2,129			2,129
Total current assets		240,616			240,348
Property, plant and equipment:
Land		70,858			70,860
Buildings and improvements		62,306			62,335
Leasehold improvements		138,061			137,467
Fixtures and equipment		216,358			209,751
		487,583			480,413
Less – Accumulated depreciation and amortization		234,779			221,951
Net property, plant and equipment		252,804			258,462
Assets under capital leases, net of accumulated amortization of $4,314 in 2006 and $5,106 in 2005		1,204			1,423
Goodwill		34,775			34,775
Deferred tax assets		28,749			28,749
Equity investment in joint venture		8,033			7,481
Cash held in real estate trust		123			120
Other assets		68,180			66,960
Total assets	$	634,484		$	638,318
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and capital leases	$	53,937		$	54,076
Notes payable to affiliate		33,134			33,146
Accounts payable		92,874			99,694
Accrued salaries and wages		15,705			19,898
Other accrued liabilities		35,592			56,251
Liabilities of discontinued operations		855			1,101
Total current liabilities		232,097			264,166
Long-term liabilities:
Obligations under capital leases		1,576			1,848
Bank debt		35,000			20,000
Other long-term liabilities		36,114			35,086
Postretirement and postemployment benefits		42,635			43,275
Total long-term liabilities		115,325			100,209
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; 32,494,959 shares issued and outstanding in 2006 and 31,903,478 in 2005)		322			319
Additional paid-in capital		236,931			231,775
Retained earnings		75,817			67,523
Accumulated other comprehensive loss		(15,868	)		(15,822	)
Notes receivable for common stock		(18	)		(18	)
Treasury stock, at cost, 751,432 shares in 2006 and 729,475 shares in 2005		(10,122	)		(9,834	)
Total stockholders’ equity		287,062			273,943
Total liabilities and stockholders’ equity	$	634,484		$	638,318

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SMART & FINAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share amounts)

	Twelve Weeks Ended						Twenty-four Weeks Ended
	June 18, 2006			June 19, 2005			June 18, 2006			June 19, 2005
	(Unaudited)						(Unaudited)
Sales	$	493,737		$	484,105		$	940,516		$	911,730
Cost of sales, buying and occupancy		412,487			404,373			788,449			763,823
Gross margin		81,250			79,732			152,067			147,907
Operating and administrative expenses		69,731			64,324			134,451			124,541
Income from operations		11,519			15,408			17,616			23,366
Interest expense, net		2,488			2,171			4,893			4,380
Income from continuing operations before income taxes		9,031			13,237			12,723			18,986
Income tax provision		(3,580	)		(5,211	)		(5,023	)		(7,449	)
Equity earnings of joint venture		331			165			594			155
Income from continuing operations		5,782			8,191			8,294			11,692
Discontinued operations, net of tax		—			(100	)		—			(406	)
Net income	$	5,782		$	8,091		$	8,294		$	11,286
Earnings (loss) per common share*:
Earnings per common share from continuing operations	$	0.18		$	0.27		$	0.27		$	0.38
Loss per common share from discontinued operations		—			—			—			(0.01	)
Earnings per common share	$	0.18		$	0.26		$	0.27		$	0.37
Weighted average common shares		31,379,382			30,742,029			31,245,683			30,691,318
Earnings (loss) per common share, assuming dilution*:
Earnings per common share, assuming dilution, from continuing operations	$	0.18		$	0.26		$	0.26		$	0.36
Loss per common share, assuming dilution, from discontinued operations		—			—			—			(0.01	)
Earnings per common share, assuming dilution	$	0.18		$	0.25		$	0.26		$	0.35
Weighted average common shares and common share equivalents		32,196,568			31,830,075			32,004,081			32,051,658

* Totals may not aggregate due to rounding.

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SMART & FINAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AS A PERCENTAGE OF SALES

	Twelve Weeks Ended				Twenty-four Weeks Ended
	June 18, 2006		June 19, 2005		June 18, 2006		June 19, 2005
	(Unaudited)				(Unaudited)
Sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales, buying and occupancy	83.5		83.5		83.8		83.8
Gross margin	16.5		16.5		16.2		16.2
Operating and administrative expenses	14.1		13.3		14.3		13.7
Income from operations	2.3		3.2		1.9		2.6
Interest expense, net	0.5		0.4		0.5		0.5
Income from continuing operations before income taxes	1.8		2.7		1.4		2.1
Income tax provision	(0.7	)	(1.1	)	(0.5	)	(0.8	)
Equity earnings of joint venture	0.1		—		0.1		—
Income from continuing operations	1.2		1.7		0.9		1.3
Discontinued operations, net of tax	—		—		—		—
Net income	1.2	%	1.7	%	0.9	%	1.2	%

* Totals may not aggregate due to rounding.

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SMART & FINAL INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

	Twenty-four Weeks Ended
	June 18, 2006			June 19, 2005
	(Unaudited)
Cash Flows from Operating Activities:
Income from continuing operations	$	8,294		$	11,692
Adjustments to reconcile income from continuing operations to net cash provided by continuing activities:
Depreciation		8,625			8,464
Amortization		7,643			5,621
Amortization of deferred financing costs		231			132
Share-based compensation		804			688
Excess tax benefit from share-based compensation		(631	)		—
Deferred tax (benefit) provision		(320	)		(33	)
Equity earnings of joint venture		(594	)		(155	)
Asset impairment, at gross		542			—
Gain on disposal of property, plant and equipment		(31	)		(35	)
Decrease (increase) in:
Accounts receivable		4,686			4,079
Inventories		(3,330	)		(1,592	)
Prepaid expenses and other assets		5,180			2,063
Increase (decrease) in:
Accounts payable		(6,819	)		10,754
Accrued salaries and wages		(4,193	)		(7,292	)
Other accrued liabilities		(15,871	)		(1,813	)
Net cash provided by continuing activities		4,216			32,573
Net cash used in discontinued activities		—			(1,447	)
Net cash provided by operating activities		4,216			31,126
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment		(11,889	)		(21,749	)
Proceeds from disposal of property, plant and equipment		51			21
Investment in capitalized software		(3,074	)		(5,025	)
Change in cash held in real estate trust		(3	)		(2	)
Other		(9	)		(97	)
Net cash used in investing activities		(14,924	)		(26,852	)
Cash Flows from Financing Activities:
Payments on bank line of credit		(30,000	)		(5,000	)
Borrowings on bank line of credit		45,000			10,000
Payments on notes payable		(422	)		(622	)
Excess tax benefits from share-based compensation		631			—
Stock repurchases		(289	)		—
Proceeds from issuance of common stock, net of costs		3,264			220
Net cash provided by financing activities		18,184			4,598
Increase in cash and cash equivalents		7,476			8,872
Cash and cash equivalents at beginning of the period		31,887			28,672
Cash and cash equivalents at end of the period	$	39,363		$	37,544

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