Stater Bros 8-K Stater Bros. Holdings Announces First Quarter Results

EXHIBIT 99.1

21700 Barton Road
P.O. Box 150
Colton, California 92324 Contact:
Phil Smith
Stater Bros. Holdings Inc.
(909)783-5287

P R E S S  R E L E A S E
For Immediate Release
Tuesday, February 7, 2006

STATER BROS. HOLDINGS ANNOUNCES FIRST QUARTER RESULTS

Colton, California. February 7, 2006; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the first quarter of fiscal 2006 ended December 25, 2005.

Sales for the thirteen week first quarter ended December 25, 2005, increased 3.33% to $867.0 million compared to $839.1 million for the thirteen weeks ended December 26, 2004. Like store sales increased 0.28% for the thirteen weeks ended December 25, 2005 compared to the thirteen weeks ended December 26, 2004.

The Company reported net income for the thirteen week first quarter ended December 25, 2005 of $3.3 million compared to net income of $3.3 million for the thirteen week first quarter ended December 26, 2004.

Brown said; “The first quarter, with the major holiday period, had gross profit pressure due to the holiday season’s promotional activity. The current year expenses reflect increases in benefit costs, operating supplies, advertising and pharmacy operations transition expenses. We remain committed to providing a friendly and satisfying shopping experience to all our “Valued Customers” on every one of their visits to our stores. Our pharmacy operations, SuperRx, has added to this shopping experience and provided an additional service which our “Valued Customers” appreciate.”

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in California and operates 163 supermarkets through its wholly owned subsidiary, Stater Bros. Markets.

For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 783-5000.

STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 69 GOLDEN YEARS
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STATER BROS. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited

	13 Weeks Ended
	12/26/04			12/25/05
Sales	$	839,065		$	867,009
Gross profit		217,009			226,715
Operating expenses
Selling, general and administrative expenses		189,160			198,765
Depreciation and amortization		9,449			10,358
Total operating expenses		198,609			209,123
Operating profit		18,400			17,592
Interest income		1,192			2,510
Interest expense		(14,096	)		(14,576	)
Other expenses, net		(115	)		(76	)
Income before income taxes		5,381			5,450
Income taxes		2,118			2,118
Net income	$	3,263		$	3,332

STATER BROS. HOLDINGS INC.
Condensed Consolidated Balance Sheets
(In thousands)
Unaudited

	9/25/05			12/25/05
Assets
Current assets
Cash	$	263,397		$	219,560
Restricted cash		29,000			31,600
Receivables		45,006			47,386
Inventories		185,302			209,076
Other		31,122			32,340
Total current assets		553,827			539,962
Property and equipment, net		467,937			476,053
Deferred debt issuance costs, net		19,011			18,250
Other assets		14,594			14,102
Total assets	$	1,055,369		$	1,048,367
Liabilities and stockholder’s deficit
Current liabilities
Accounts payable	$	144,298		$	152,938
Accrued expenses and other liabilities		131,185			111,107
Current portion of capital lease obligations		1,190			1,226
Total current liabilities		276,673			265,271
Long-term debt		700,000			700,000
Capital lease obligations, less current portion		8,292			7,972
Other long-term liabilities		83,799			85,187
Total stockholder’s deficit		(13,395	)		(10,063	)
Total liabilities and stockholder’s deficit	$	1,055,369		$	1,048,367