Arden Group Inc. Announces Financial Results.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Aug. 13, 2001

Arden Group Inc. (Nasdaq:ARDNA) today released its sales and income figures for the second quarters ended June 30, 2001, and July 1, 2000, respectively.

Arden Group Inc. is the parent company of Gelson's Markets, which operates 15 Gelson's and two Mayfair supermarkets in Southern California.

             Arden Group Inc. and Consolidated Subsidiary
                              (Unaudited)



                                            Second Quarter Ended
                                        June 30, 2001     July 1, 2000

Sales                                   $96,301,000 (a)   $88,670,000
Operating income                         $5,784,000 (b)    $5,239,000
Interest, dividend and other income
  (expense), net                            281,000           228,000
Income before income taxes                6,065,000         5,467,000
Income tax provision                      2,471,000         2,228,000
Net income                               $3,594,000        $3,239,000

Net income per common share:
Basic                                         $1.06            $0.91
Diluted                                       $1.05            $0.91

Weighted average common shares
  outstanding:
Basic                                     3,404,301        3,551,648
Diluted                                   3,407,418        3,553,335

                                           Twenty-Six Weeks Ended
                                      June 30, 2001      July 1, 2000

Sales                                  $191,319,000 (a)  $175,115,000
Operating income                        $10,868,000 (b)   $10,421,000
Interest, dividend and other income
  (expense), net                            751,000 (c)       215,000
Income before income taxes               11,619,000        10,636,000
Income tax provision                      4,734,000         4,334,000
Net income                               $6,885,000        $6,302,000

Net income per common share:
Basic                                         $2.01             $1.77
Diluted                                       $2.00             $1.77
Weighted average common shares
  outstanding:
Basic                                     3,430,899         3,568,560
Diluted                                   3,434,016         3,569,450


(a) Sales increased 8.6% in the second quarter of 2001 and 9.3% in the
    first half over the prior year. The majority of the sales increase
    is attributable to the opening of new stores in Irvine and Dana
    Point, Calif., in September 2000 and January 2001, respectively.
    Same-store sales increased 1.9% in the second quarter of 2001 and
    2.5% in the first half compared to the same periods of the prior
    year. The increase in same-store sales reflects to some extent the
    positive impact of store remodel activity.

(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 2001 compared to 2000. Despite our
    excellent experience, workers' compensation premiums increased
    substantially. The company also recognized compensation expense
    related to stock appreciation rights due to an increase in the
    company's stock price. Finally, the opening of the Irvine and Dana
    Point stores, as discussed above, also resulted in higher expenses
    as a percent of sales.

(c) Other income (expense) includes a net investment gain of $17,000
    in the first half of 2001 and a net loss of $395,000 in the prior
    year.