Arden Group, Inc. Announces Fourth Quarter and Fiscal Year Earnings.

LOS ANGELES -- Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the fourth quarters and fiscal years ended December 31, 2005 and January 1, 2005.

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
                    FOURTH QUARTER EARNINGS RELEASE
                              (UNAUDITED)


                              Thirteen Weeks       Fifty-Two Weeks
                                  Ended(a)             Ended(b)
                            December   January    December   January
                               31,        1,         31,        1,
                              2005       2005       2005       2005

(In Thousands, Except Share and Per Share Data)

Sales                     $124,169   $122,250   $470,354   $502,898

Operating income             7,655      5,854     31,816     34,579
Interest, dividend and
 other income
 (expense), net(c)             680        692      1,606      3,591

      Income before
       income taxes          8,335      6,546     33,422     38,170
Income tax provision         3,349      2,612     13,571     15,498

      Net income            $4,986     $3,934    $19,851    $22,672

Net income per common
 share(d):
     Basic - Class A Common
      Stock                  $1.48      $1.23      $5.87      $7.00
     Basic - Class B Common
      Stock                    N/A       0.84        N/A       6.13
     Diluted                  1.48       1.16       5.87       6.70

Weighted average common shares
 outstanding(d):
     Basic - Class A Common
      Stock              3,379,002  2,813,894  3,381,051  2,217,675
     Basic - Class B Common
      Stock                    N/A    569,358        N/A  1,164,977
     Diluted             3,379,002  3,383,252  3,381,051  3,382,652


(a) Sales increased 1.6% during the fourth quarter of 2005
compared to the same period of 2004.  The fourth quarter of 2005
included Rosh Hashanah and Yom Kippur sales which occurred in the
third quarter of 2004.  Operating income as a percent of sales was
6.2% in the fourth quarter of 2005 compared to 4.8% in the same period
of 2004 primarily due to lower compensation expense in 2005 related
to stock appreciation rights (SARs).  SARs compensation expense
totaled $1,635 and $2,860 during the fourth quarter of 2005 and 2004,
respectively.  SARs compensation expense is recognized over the
vesting period and also fluctuates based on changes in the Company's
common stock price.

(b) Sales in fiscal 2005 were $470,354 compared to $502,898 in 2004, a
decrease of 6.5%.  The labor dispute affecting other supermarkets in
the Company's trade area resulted in significantly higher sales for
Gelson's in fiscal 2004.  Sales were negatively impacted for three
weeks during 2004 as the Century City store was closed due to
construction at the Century City Shopping Center where the store is
located.  Sales at the Century City store were also negatively
impacted in both years as a result of ongoing construction near the
store.

Operating income decreased to 6.8% of sales in fiscal 2005 from 6.9%
of sales in 2004.  The Company achieved significant economies of scale
in fiscal 2004 on incremental sales during the labor dispute.  These
economies were partially offset by approximately $2,200 of bonus
expense recognized and paid in 2004 to the Company's union employees
who belong to the United Food and Commercial Workers' Union, as well
as, higher compensation expense in 2004 related to the Company's SARs
program and higher gross margins in 2005 due to a combination of cost
reductions and product pricing decisions.  During 2005, the Company
recognized $946 of SARs compensation expense compared to $3,658 in
2004.

(c) Other income (expense) includes net gains realized on investments
of $36 and $1,787 in fiscal 2005 and 2004, respectively.

(d) As of November 10, 2004, all Class B Common Stock was converted to
Class A Common Stock.