Arden Group, Inc. Announces 1st Quarter Earnings.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--May 7, 2002

Arden Group, Inc. (NASDAQ:ARDNA) today released its sales and income figures for the first quarters March 30, 2002 and March 31, 2001, respectively.

Arden Group, Inc. is the parent company of Gelson's Markets which operates 16 Gelson's and two Mayfair supermarkets in Southern California.

            ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
                         FIRST QUARTER REPORT

(In Thousands, Except Share and Per Share Data)         (Unaudited)
----------------------------------------------------------------------
                                                Thirteen Weeks Ended
                                                --------------------
                                               March 30,     March 31,
                                                 2002          2001
                                               ---------     ---------

Sales                                        $ 100,560 (a)  $   95,018
                                              ============  ==========
Operating income                                 5,973 (b)       5,084
Interest, dividend and other income
 (expense), net                                    415             470
                                            ------------    ----------
     Income before income taxes                  6,388           5,554
Income tax provision                             2,603           2,263
                                            ------------    ----------
     Net income                                $ 3,785 (c)  $    3,291
                                            ============    ==========

Net income per common share:
     Basic                                     $  1.13         $  0.95
                                            ============    ==========
     Diluted                                   $  1.12         $  0.95
                                            ============    ==========

Weighted average common shares outstanding:
     Basic                                   3,347,569       3,457,496

     Diluted                                 3,365,610       3,460,360


(a) Sales increased 5.8% in the first quarter of 2002 compared to the
    same period of the prior year. Same store sales were up 4.0%. Some
    of the increase resulted from Easter and Passover sales which
    occurred in the first quarter of 2002 versus the second quarter of
    2001. The increase in sales also reflects to some extent the
    positive impact of store remodel activity and the September 2001
    opening of a new store located in a multi-use center in Pasadena,
    California.

(b) The increase in operating income reflects higher sales and gross
    profit percentage partially offset by higher operating expenses
    (as a percent of sales) in 2002 compared to 2001. During the first
    quarter of 2002 and 2001, the Company recognized compensation
    expense related to its stock appreciation rights of $426 and $164,
    respectively, as a result of increases in the Company's stock
    price. Consequently, basic net income per common share decreased
    $.13 and $.05 per share during the first quarter of 2002 and 2001,
    respectively. In addition, 2002 expense as a percent of sales is
    higher due to the opening of the Pasadena store, as described
    above.

(c) Results for the first quarter of 2002 do not reflect the
    reinstatement of a multi-employer union pension contribution
    estimated at approximately $277,000 per month which is scheduled
    to commence in May 2002.