Arden Group, Inc. Announces First Quarter Earnings.

LOS ANGELES -- Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the first quarter ended April 1, 2006.

Arden Group, Inc. is the parent company of Gelson's Markets which operates 18 full-service supermarkets in Southern California carrying both perishable and grocery products.

ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
                    FIRST QUARTER EARNINGS RELEASE
                              (UNAUDITED)

                                            Thirteen Weeks Ended
                                         ----------------------------
                                         April 1, 2006  April 2, 2005
                                         -------------  -------------
(In Thousands, Except Share and Per
 Share Data)

Sales                                (a) $    118,053      $  115,976
                                         =============  =============

Operating income                     (b)        8,426           8,998
Interest, dividend and other income
 (expense), net                                   389             255
                                         -------------  -------------

      Income before income taxes                8,815           9,253

Income tax provision                            3,592           3,770
                                         -------------  -------------

      Net income                         $      5,223      $    5,483
                                         =============  =============
Basic and diluted net income per
 common share                        (c) $       1.59      $     1.62

Basic and diluted weighted average
 common shares outstanding           (c)    3,280,436       3,383,252


(a) Same store sales increased 1.8% during the first quarter of 2006
    compared to the same period of 2005. The comparative sales
    increase was achieved even though Easter sales occurred in the
    first quarter of 2005 but not until the second quarter of 2006.

(b) Effective January 1, 2006, the Company adopted Statement of
    Financial Accounting Standard No. (SFAS) 123R (revised 2004),
    "Share-Based Payment," which requires the measurement and
    recognition of compensation expense for stock-based compensation.
    The Company has outstanding stock appreciation rights (SARs) that
    have been granted to certain employees and non-employee directors.
    The Company adopted SFAS 123R using the modified prospective
    transition method, and therefore prior period results have not
    been restated. As of January 1, 2006, the cumulative effect of
    adopting SFAS 123R resulted in the recognition of $288 of
    compensation expense ($171 after tax or $0.05 per share). SFAS
    123R requires the Company to remeasure the fair value of SARs each
    reporting period until the award is settled. During the first
    quarter of 2006, the Company recognized an additional $300 of
    compensation expense ($178 after tax or $0.05 per share) related
    to the increase in the fair value of SARs and additional vesting
    during the period. Previously, the Company accounted for SARs in
    accordance with Financial Accounting Standards Board
    Interpretation No. (FIN) 28, "Accounting for Stock Appreciation
    Rights and Other Variable Stock Option or Award Plans." Under FIN
    28, compensation expense was recognized for changes in the market
    price of the Company's Class A Common Stock and to reflect
    increases in vesting of the SARs. During the first quarter of
    2005, the Company reversed $1,592 of SARs compensation expense
    recognized in previous periods as a result of a reduction in the
    Company's Class A Common Stock price during that period.

(c) The Company had no potential common shares outstanding during the
    first quarters of 2005 or 2006, and therefore, basic and diluted
    net income per common share are the same. During the first quarter
    of 2006, the Company purchased and retired 149,573 shares of Class
    A Common Stock for an aggregate purchase price of approximately
    $12,481 in unsolicited private transactions with unrelated
    parties. Consequently, basic and diluted net income per common
    share is $0.04 higher in the first quarter of 2006 due to the
    reduction in shares.