Arden Group, Inc. Announces Third Quarter Earnings.

LOS ANGELES -- Arden Group, Inc. (Nasdaq:ARDNA) today released its sales and income figures for the third quarter ended October 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
                    THIRD QUARTER EARNINGS RELEASE
                              (UNAUDITED)


(In Thousands, Except Share and Per Share Data)

                        Thirteen Weeks Ended  Thirty-Nine Weeks Ended
                        October 1,  October 2,  October 1, October 2,
                           2005       2004        2005        2004

Sales                (a)   $113,855 $  113,391  $  346,185 $  380,648

Operating Income     (b)      7,880      6,968      24,161     28,725
Interest, dividend
 and other income
 (expense), net      (c)        320        485         926      2,899

      Income before
       income taxes           8,200      7,453      25,087     31,624
Income tax provision          3,341      3,037      10,222     12,886

      Net income           $  4,859 $    4,416    $ 14,865 $   18,738

Net income per
 common share (d):
     Basic - Class A
      Common Stock        $    1.44 $     1.36    $   4.40 $     5.77
     Basic - Class B
      Common Stock             0.00       1.22        0.00       5.20
     Diluted                   1.44       1.31        4.40       5.54

Weighted average
 common shares
 outstanding (d):
     Basic - Class A
      Common Stock        3,379,345  2,019,796   3,381,734  2,018,935
     Basic - Class B
      Common Stock                0  1,363,456           0  1,363,517
     Diluted              3,379,345  3,383,252   3,381,734  3,382,452

(a) Sales increased 0.4% and decreased 9.1% during the thirteen
and thirty-nine weeks ended October 1, 2005, respectively, compared to
the same periods of 2004. The third quarter of 2004 included Rosh
Hashanah and Yom Kippur sales which did not occur until the fourth
quarter in 2005. During the fourth quarter of 2003 and the first
quarter of 2004, sales increased significantly due to a labor dispute
between the United Food and Commercial Workers and the three major
grocery retailers. By the third quarter of 2004, most customers had
returned to their previous shopping patterns. 2005 sales are greater
than comparable pre-strike periods as the Company has been successful
in retaining some of the new shoppers that came to Gelson's during the
labor dispute. Sales were slightly lower in 2005 due in part to the
cumulative effect of major construction occurring near the Company's
Century City store. Sales were negatively impacted during the last
week of the third quarter of 2004 as the Century City store was closed
due to construction at the Century City Shopping Center. The store,
which was closed for a total of three weeks, reopened on October 18,
2004.

(b) During the third quarter and first nine months of 2005,
operating income increased 13.1% and decreased 15.9%, respectively,
compared to the same periods of the prior year. The Company achieved
significant economies of scale on incremental sales during the labor
dispute. Operating income was also impacted by the effect of stock
appreciation rights (SARs). During the first nine months of 2005, the
Company reversed $689,000 of SARs compensation expense recognized in
previous periods due to a reduction in the Company's Class A Common
Stock price. In comparison, the Company recognized SARs compensation
expense of $798,000 in the same period of 2004. In the third quarter
of 2005, SARs compensation expense was $62,000 compared to $1,000 in
the third quarter of 2004.

(c) Other income (expense) includes net gains realized on the sale
of investments of $8,000 and $1,571,000 in the first nine months of
2005 and 2004, respectively.

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