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QFC REPORTS RECORD SECOND-QUARTER RESULTS

 BELLEVUE, Wash., June 29 /PRNewswire/ -- Quality Food Centers Inc. (QFC) (NASDAQ: QFCI) today reported record sales and earnings for the 12 weeks ended June 12, 1993.
 Net earnings for the second quarter of 1993 increased 14 percent to a record $6,607,000, or 34 cents per share, compared with net earnings of $5,799,000, or 30 cents per share, in the corresponding 1992 quarter.
 Second quarter sales increased 12 percent to $119.8 million, compared with $107.4 million last year. Comparable store sales increased 3 percent during the quarter.
 According to Marc Evanger, vice president and chief financial officer, "Our second quarter sales increase is due to our strong comparable store sales gain, the five stores we have added since the beginning of the fourth quarter of 1992, and additional sales resulting from our expansion and remodeling program." Evanger added, "The increase from these factors was offset by food price deflation during the quarter, which averaged nearly 1.5 percent. Our operating margin increased to 8.1 percent for the quarter, compared with 7.9 percent for the same period last year, reflecting improved buying and merchandising."
 For the 24 weeks ended June 12, 1993, net earnings increased 18 percent to $12,846,000, or 65 cents per share, compared with net earnings of $10,854,000, or 55 cents per share, in the comparable period last year. Sales for the 24-week period of 1993 reached $235.8 million, up 14.7 percent from 1992. Year-to-date comparable store sales have increased 4.7 percent.
 Dan Kourkoumelis, QFC president and chief operating officer, said, "We're very pleased with our continued strong performance in 1993, which reflects the dedication and quality of our people as they continue to meet the challenges of our continued growth."
 Stuart Sloan, chairman and chief executive officer, stated, "In addition to our outstanding financial performance, we are implementing some exciting new merchandising strategies and making solid strides on the expansion front. Our announced plans for 1993 call for the addition of five stores, four of which are already open. We acquired our Inglewood and Wilderness Village stores at the beginning of the year, opened our Midway store in February, and opened our Fairwood store on June 2. The construction of our Federal Way store is underway and on schedule for a fall opening, and we're underway with our Wilderness Village replacement store. The expansion and remodeling of our Bothell store was completed in April, the expansion and remodeling of our Capitol Hill store is in progress and we plan to begin remodeling our Inglewood store later this year." Sloan continued, "These activities will result in a store square footage increase of more than 19 percent for 1993, and we are continuing to actively pursue other new store sites and acquisition opportunities. Some are still in the negotiation phase and we have secured a number of other sites by signing purchase agreements or options. However, these store sites are subject to certain contingencies or are still in the entitlement process."
 The company also announced that its board of directors declared its second regular quarterly cash dividend of 5 cents per share of the company's common stock payable on Aug. 20 to shareholders of record as of July 30.
 QFC is the largest independent supermarket chain in the Seattle/ Puget Sound area. QFC has served this area for 38 years and today operates 37 stores. QFC's first priority is satisfying the needs of customers by providing superior service, high-quality perishables and competitive prices at convenient store locations.
 QUALITY FOOD CENTERS INC.
 FINANCIAL HIGHLIGHTS
 Second Quarter - 1993
 (in thousands except per-share amounts)
 12 Weeks Ended
 June 12, pct of June 13, pct of
 1993 sales 1992 sales
 Sales $119,753 100.0 $107,350 100.0
 Cost of sales and
 related occupancy
 expenses 88,896 74.2 80,014 74.6
 Marketing, general and
 administrative
 expenses 21,166 17.7 18,802 17.5
 Operating income 9,691 8.1 8,534 7.9
 Interest income 219 0.2 195 0.2
 Earnings before taxes 9,910 8.3 8,729 8.1
 Income taxes 3,303 2.8 2,930 2.7
 Net earnings $ 6,607 5.5 $ 5,799 5.4
 Earnings per share $ 0.34 $ 0.30
 Average shares
 outstanding 19,659 19,619
 24 Weeks Ended
 June 12, pct of June 13, pct of
 1993 sales 1992 sales
 Sales $235,796 100.0 $205,582 100.0
 Cost of sales and
 related occupancy
 expenses 175,473 74.4 153,509 74.6
 Marketing, general and
 administrative
 expenses 41,450 17.6 36,120 17.6
 Operating income 18,873 8.0 15,953 7.8
 Interest income 406 0.2 383 0.2
 Earnings before taxes 19,279 8.2 16,336 8.0
 Income taxes 6,433 2.7 5,482 2.7
 Net earnings $ 12,846 5.5 $ 10,854 5.3
 Earnings per share $ 0.65 $ 0.55
 Average shares
 outstanding 19,613 19,617
 Cash and Cash
 Equivalents $ 39,933 $ 25,604
 Total Assets 165,848 131,551
 Shareholders' Equity 120,345 93,485
 Depreciation and
 Amortization 2,055 1,725
 Number of Stores 37 32
 -0- 6/29/93
 /CONTACT: Marc Evanger, vice president, chief financial officer, of QFC, 206-455-3761/
 (QFCI)


CO: Quality Food Centers Inc. ST: Washington IN: REA SU: ERN DIV

SW -- SE005 -- 6527 06/29/93 07:51 EDT
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Date:Jun 29, 1993
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