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RICHFOOD ANNOUNCES RECORD SECOND QUARTER NET EARNINGS

 RICHFOOD ANNOUNCES RECORD SECOND QUARTER NET EARNINGS
 RICHMOND, Va., Nov. 3 /PRNewswire/ -- Richfood Holdings, Inc. (NASDAQ: RCHF) today announced record net earnings of $3.5 million, or $0.33 per share, for the 12-week period ended Oct. 17, 1992, a 33.7 percent increase over net earnings of $2.6 million, or $0.25 per share, for the comparable prior year quarter. The company operated at a net after-tax margin of 1.48 percent, compared to 1.08 percent in the comparable quarter of last year. Record net earnings were achieved on sales of $235.8 million for the second quarter of fiscal 1993, compared to sales of $242.4 million for the second quarter of fiscal 1992.
 Donald D. Bennett, president and chief executive officer, commented: "We achieved record net earnings in the second quarter by aggressively controlling inventory levels and expenses, thereby offsetting the effects of lower sales volume caused by current economic conditions, including deflation in food prices. Consumers are watching household expenditures very closely and are being selective in grocery purchases. Deflation in food prices continues to affect our top line sales dollars, particularly in perishables."
 Mr. Bennett added: "These changes in consumer buying patterns have affected our sales mix resulting in higher gross margins for the company. Stringent expense controls held operating and administrative expenses to $13.7 million for the second quarter, a decrease of $0.4 million from the second quarter of fiscal 1992."
 For the 24 week period ended Oct. 17, 1992, the company reported net earnings of $6.9 million, an increase of 34.6 percent over net earnings of $5.1 million for the comparable prior year period. Earnings per share for the 24 week period were $0.66, compared to $0.49 per share for the comparable prior year period. Fiscal 1993 year-to-date sales were $481.4 million, versus $478.3 million for the comparable period of fiscal 1992.
 Inventory levels were $67.8 million at October 17, 1992, compared to $83.6 million at Oct. 12, 1991. Mr. Bennett commented further: "We continue to manage our inventory levels efficiently while maintaining our service levels to customers. We are properly positioned for the upcoming holiday selling season."
 Notes receivable decreased to $31.2 million at Oct. 17, 1992, compared to $44.6 million at first quarter end. This decrease was primarily attributable to the repayment on Oct. 16, 1992 of $13.5 million of short-term bridge financing provided to a purchaser of certain Gene Walters' Marketplace stores. Interest income was $0.9 million for the second quarter of fiscal 1993, up from $0.1 million for the same quarter last year.
 Richfood Holdings, Inc. is the largest wholesale food distributor in its Mid-Atlantic operating region. The company sells a complete selection of national brand and private label groceries, frozen foods, meat, produce, dairy, bakery and delicatessen products to approximately 400 customers that operate approximately 650 retail supermarkets in Virginia, Maryland, North Carolina, Delaware, West Virginia and the District of Columbia.
 RICHFOOD HOLDINGS, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 (In thousands, except per share data)
 Second Quarter Ended Fiscal Year to Date
 10/17/92 10/12/92 10/17/92 10/12/91
 (12 Weeks) (24 Weeks)
 Net Sales $ 235,800 $242,378 $481,429 $478,281
 Costs and Expenses
 Cost of goods sold 216,986 223,739 443,517 441,879
 Operating and adminis-
 trative expenses 13,662 14,046 27,626 27,355
 Interest expense 756 690 1,498 1,387
 Interest income (899) (136) (1,689) (233)
 Other income (158) (103) (365) (228)
 Earnings before
 income taxes 5,453 4,142 10,842 8,121
 Income tax provision 1,963 1,533 3,957 3,005
 Net earnings $3,490 $2,609 $6,885 $5,116
 Net earnings per
 common share $0.33 $0.25 $0.66 $0.49
 Average common shares
 outstanding 10,500 10,432 10,484 10,432
 -0- 11/3/92
 /CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for Richfood Holdings/
 (RCHF) CO: Richfood Holdings, Inc. ST: Virginia IN: FOD SU: ERN


SM -- NY006 -- 1935 11/03/92 09:01 EST
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Date:Nov 3, 1992
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