Arden Group, Inc. Announces Fourth Quarter and Year-End Earnings.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--March 22, 2002

Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the fourth quarters and years ended December 29, 2001 and December 30, 2000, 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
                         FOURTH QUARTER REPORT

(In Thousands, Except Share and Per Share Data)

                       (Unaudited)
                   Thirteen Weeks Ended        Fifty-Two Weeks Ended
                December 29,  December 30,  December 29,  December 30,
                    2001         2000          2001           2000

Sales           $ 103,641(a)  $  96,870     $ 391,880(a)   $ 359,994

Operating income    3,960(b)      5,078        20,112(b)      19,838
Interest, dividend
 and other income
 (expense), net       754(c)        390         1,926(c)       1,019

    Income before
     income taxes   4,714         5,468        22,038         20,857
Income tax
 provision          1,672         2,228         8,731          8,498

    Net income  $   3,042     $   3,240     $  13,307      $  12,359

Net income per
 common share:
  Basic         $     .91     $     .94     $    3.93      $    3.52
  Diluted       $     .91     $     .94     $    3.92      $    3.52

Weighted average
 common shares
 outstanding:
  Basic         3,347,569     3,457,496     3,389,234      3,513,028
  Diluted       3,361,082     3,460,231     3,398,671      3,515,117


(a) Sales increased 7.0% in the fourth quarter of 2001 and 8.9% for
the year compared to the same periods of the prior year. The majority
of the sales increase is attributable to the opening of new stores in
Dana Point and Pasadena, California in January 2001 and September
2001, respectively. Same store sales increased 1.1% and 2.3% for the
fourth quarter and year ended December 29, 2001, respectively, over
the prior year. The increase in same store sales reflects to some
extent the positive impact of pricing and store remodel activity.

(b) During the fourth quarter and year ended December 29, 2001, the
Company recognized compensation expense of $816 and $1,223,
respectively, related to its phantom stock options and stock
appreciation rights due to an increase in the Company's stock price.
As a result of these charges, net income per common share decreased
$.14 and $.21 per share during the fourth quarter and year ended
December 29, 2001, respectively, compared to $.03 per common share
during both the fourth quarter and year ended December 30, 2000. In
addition, salaries and promotion expense in 2001 increased due to the
opening of new stores, as described above. A substantial increase in
workers' compensation premiums also contributed to the rise in expense
in spite of the Company's favorable claims experience.

(c) Other income (expense) includes a net investment gain of $383 in
fiscal 2001 and a net loss of $434 in the prior year. The fourth
quarter of 2001 reflects a net investment gain of $366 compared to a
net loss of $43 in the same period of fiscal 2000.