Stater Bros 8-K Results of Operations and Financial Condition

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 6, 2007

STATER BROS. HOLDINGS’ SALES AND PROFITS INCREASE
IN 1^STQUARTER

Colton, California. February 6, 2007; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the first quarter of fiscal 2007 ended December 24, 2006.

Sales for the thirteen week first quarter ended December 24, 2006, increased 4.3% to $904.1 million compared to $867.0 million for the thirteen weeks ended December 25, 2005. The timing of the Christmas Day added one more sales day in first quarter of fiscal 2007 compared to the first quarter of fiscal 2006. 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 2006. After taking into consideration the effect of Christmas Day, like store sales increased 1.4% for the thirteen weeks ended December 24, 2006 compared to the thirteen weeks ended December 25, 2005.

The Company reported net income for the thirteen week first quarter ended December 24, 2006 of $9.9 million compared to net income of $3.3 million for the thirteen week first quarter ended December 25, 2005.

Brown said; “The first quarter results benefited from improved gross margins and decreased operating expenses, as a percentage of sales, in the first quarter of fiscal 2007 compared to the first quarter of fiscal 2006. 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”.

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 162 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. HOLDINGS INC.
Condensed Consolidated Statements of Income
(In thousands)
Unaudited

	13 Weeks Ended
	12/25/05			12/24/06
Sales	$	867,009		$	904,067
Gross profit		226,715			241,890
Operating expenses
Selling, general and administrative expenses		198,765			201,801
Depreciation and amortization		10,358			11,884
Total operating expenses		209,123			213,685
Operating profit		17,592			28,205
Interest income		2,510			2,826
Interest expense		(14,576	)		(14,285	)
Other expenses, net		(76	)		(171	)
Income before income taxes		5,450			16,575
Income taxes		2,118			6,673
Net income	$	3,332		$	9,902

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

	9/24/06			12/24/06
Assets
Current assets
Cash	$	198,545		$	221,094
Restricted cash		24,121			8,121
Short-term investments		26,849			—
Receivables, net		39,173			42,030
Inventories		196,031			198,879
Other		30,122			30,680
Total current assets		514,841			500,804
Property and equipment, net		497,073			505,704
Deferred debt issuance costs, net		15,972			15,211
Other assets		30,206			35,927
Total assets	$	1,058,092		$	1,057,646
Liabilities and stockholder’s deficit
Current liabilities
Accounts payable	$	155,827		$	149,111
Accrued expenses and other liabilities		124,680			118,135
Current portion of capital lease obligations		1,054			972
Total current liabilities		281,561			268,218
Long-term debt		700,000			700,000
Capital lease obligations, less current portion		7,294			7,056
Other long-term liabilities		80,316			83,549
Total stockholder’s deficit		(11,079	)		(1,177	)
Total liabilities and stockholder’s deficit	$	1,058,092		$	1,057,646