Stater Bros 8-K Stater Bros. Holdings Inc. Announces Record Sales

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, August 12, 2003

STATER BROS. HOLDINGS INC. ANNOUNCES RECORD SALES

Colton, California. August 12, 2003; Today, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced financial results for the thirteen week third quarter and thirty-nine week year to date period ended on June 29, 2003, including record sales volume.

Record setting sales were achieved for the thirteen week third quarter ended June 29, 2003. Sales in the current year increased 2.3% to $688.1 million compared to $672.8 million for the thirteen weeks ended June 30, 2002. Total sales for the thirty-nine weeks ended June 29, 2003, increased 2.9% and amounted to $2.047 billion compared to $1.990 billion for the same period in the prior year. Like store sales increased 1.8% and 2.4% for the thirteen week and thirty-nine week periods ended June 29, 2003, respectively.

Operating profit for the thirteen week third quarter of 2003 amounted to $14.2 million compared to $17.7 million for the third quarter of 2002. Operating profit for the fiscal year to date of 2003 amounted to $51.0 million compared to $55.9 million for the like period in fiscal 2002. Like most operators in California, the Company has been hard hit with rising utility, workers’ compensation and health care costs.

The Company reported net income for the thirteen week third quarter ended June 29, 2003 of $769,000 compared to $2.9 million for the thirteen weeks ended June 30, 2002. Net income for the fiscal year to date periods amounted to $7.5 million in 2003 and $11.1 million in 2002.

Operating cash flow (EBITDA) is defined as earnings before interest expense, income taxes and depreciation and amortization. EBITDA amounted to $23.3 million in the third quarter of fiscal 2003 and compares to $26.4 million for the like period of last year. EBITDA for the thirty-nine week comparable periods was $77.5 million in fiscal 2003 and $81.5 million in fiscal 2002. The following table reconciles EBITDA to net income.

(in 000's)	Q3 2003		Q3 2002		YTD 2003		YTD 2002
Net Income	$	769	$	2,911	$	7,528	$	11,137
Income Tax		394		2,024		4,798		7,740
Interest Expense		13,339		13,444		39,898		39,441
Depreciation		8,788		7,976		25,237		23,160
EBITDA	$	23,290	$	26,355	$	77,461	$	81,478

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and was recently named Southern California’s Leading Supermarket Chain by readers of a “national consumer magazine” and operates 157 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 operates 157 Supermarket locations, with 47 in San Bernardino County, 41 in Riverside County, 30 in Orange County, 27 in Los Angeles County, 10 in Northern San Diego County, and 2 in Kern County. There are over 14,000 members of the Stater Bros. “Family” of Employees. Stater Bros. is the largest private employer in the Inland Empire of Southern California, which is one of the fastest growing areas in the United States. Headquartered in Colton, California, Stater Bros. has been serving Southern California customers since 1936.

STATER BROS. MARKETS...SERVING SOUTHERN CALIFORNIA FOR 66 GOLDEN YEARS

# # #

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

			9/29/2002			06/29/03
Assets
	Current Assets
		Cash and cash equivalents	$	81,043		$	118,478
		Receivables		33,561			26,579
		Inventories		175,404			170,258
		Other current assets		23,141			24,207
	Total current assets			313,149			339,522
	Investment in unconsolidated affiliate			15,580			16,776
	Property and equipment, net			285,816			297,402
	Deferred debt issuance costs, net			13,936			11,349
	Other long-term assets			5,649			5,512
Total Assets			$	634,130		$	670,561
Liabilities and Stockholder’s Deficit
	Current Liabilities
		Accounts payable	$	104,166		$	111,652
		Accrued expenses and other liabilities		88,223			100,437
		Current portion of capital lease obligations		1,117			1,049
	Total current liabilities			193,506			213,138
	Long-term debt			458,750			458,750
	Capital lease obligations, less current portion			10,981			10,190
	Other long-term liabilities			45,014			55,076
	Common stockholder’s deficit			(74,121	)		(66,593	)
Total Liabilities and Stockholder’s Deficit			$	634,130		$	670,561

STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited

		13 Weeks Ended
		06/30/02			06/29/03
Sales		$	672,779		$	688,071
Gross profit			177,142			188,283
Operating Expenses:
	Selling, general and administrative expenses		151,459			165,325
	Depreciation and amortization		7,976			8,788
Total operating expenses			159,435			174,113
Operating profit			17,707			14,170
Interest income			319			244
Interest expense			(13,444	)		(13,339	)
Equity in earnings from unconsolidated affiliate			532			217
Other, net			(179	)		(129	)
Income before income taxes			4,935			1,163
Income taxes			2,024			394
Net income		$	2,911		$	769

STATER BROS. HOLDINGS INC.
Condensed Results of Operations
(In thousands)
Unaudited

		39 Weeks Ended
		06/30/02			06/29/03
Sales		$	1,989,579		$	2,046,776
Gross profit			526,118			558,671
Operating Expenses:
	Selling, general and administrative expenses		447,052			482,420
	Depreciation and amortization		23,160			25,237
Total operating expenses			470,212			507,657
Operating profit			55,906			51,014
Interest income			1,345			770
Interest expense			(39,441	)		(39,898	)
Equity in earnings from unconsolidated affiliate			2,555			1,196
Other, net			(1,488	)		(756	)
Income before income taxes			18,877			12,326
Income taxes			7,740			4,798
Net income		$	11,137		$	7,528