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RICHFOOD ANNOUNCES RECORD THIRD QUARTER NET EARNINGS

 RICHMOND, Va., Jan. 26 /PRNewswire/ -- Richfood Holdings, Inc. (NASDAQ: RCHF) today announced record net earnings of $4.1 million, or $0.39 per share, for the 12-week period ended Jan. 9, 1993, a 13.6 percent increase over net earnings of $3.6 million, or $0.34 per share, for the comparable prior year quarter. The company operated at a net after-tax margin of 1.70 percent, compared to 1.42 percent in the comparable quarter of last year. Sales for the third quarter of fiscal 1993 were $239.2 million, compared to sales of $251.3 million for the third quarter of fiscal 1992.
 Donald D. Bennett, president and chief executive officer, commented: "We are extremely pleased with the record net earnings in the third quarter. Our third quarter net margin of 1.70 percent ranks among the highest in the industry. We experienced a strong gross margin in the quarter primarily as a result of continued consumer preference for higher margin private label merchandise and the effects of deflation in food prices on our LIFO reserve. Tight expense controls led to a decrease of $0.2 million in operating and administrative expenses from the same quarter last year."
 Mr. Bennett continued: "Tonnage decreased 3.1 percent in the current quarter compared to a year ago as a result of $3.0 million of one-time sales to Giant Foods in the third quarter of last year, certain customer store closings and overall economic conditions. Deflation continues to affect dollar volume in the frozen food and dairy categories of our business."
 For the 36 week period ended Jan. 9, 1993, the company reported net earnings of $10.9 million, an increase of 26.0 percent over net earnings of $8.7 million for the comparable prior year period. Earnings per share for the thirty-six week period were $1.04, compared to $0.83 per share for the comparable prior year period. Fiscal 1993 year-to-date sales were $720.6 million, versus $729.6 million for the comparable period in fiscal 1992.
 The company recently announced its acquisition of the assets of B. Green & Company, Inc.'s, Civilian Wholesale Divisi. Sales for the division's most recent fiscal year exceeded $300 million. In connection with the transaction, Richfood entered into long-term supply agreements with B. Green's cash and carry and retail grocery operations, as well as with Farm Fresh of Maryland, a thirteen-store supermarket chain. The total purchase price of the acquisition was approximately $55 million.
 Mr. Bennett commented: "This acquisition represents a major achievement for Richfood, our customers and our shareholders. We have added substantial sales volume to our existing sales base in the northern portion of our current marketing area. Servicing these customers out of our warehouse will allow us to further increase efficiency and productivity of our existing inventory, warehousing and delivery systems."
 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. Prior to the B. Green acquisition, Richfood served 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
 (Dollar amounts in thousands, except per share data)
 Third quarter ended Fiscal year to date
 1/9/93 1/4/92 1/9/93 1/4/92
 (12 Weeks) (36 Weeks)
 Sales $ 239,218 $ 251,328 $ 720,647 $ 729,609
 Costs and expenses:
 Cost of goods
 sold 219,037 231,353 662,554 673,232
 Operating and
 administrative
 expenses 14,041 14,226 41,667 41,581
 Interest expense 542 778 2,040 2,165
 Interest income (635) (285) (2,324) (518)
 Other income (5) (417) (370) (645)
 Earnings before
 income taxes 6,238 5,673 17,080 13,794
 Income taxes 2,177 2,099 6,134 5,104
 Net earnings $ 4,061 $ 3,574 $10,946 $ 8,690
 Net earnings per
 common share $ 0.39 $ 0.34 $ 1.04 $ 0.83
 Average common shares
 outstanding 10,533,247 10,439,356 10,500,396 10,434,753
 -0- 1/26/93
 /CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for Richfood Holdings, Inc./
 (RCHF)


CO: Richfood Holdings, Inc. ST: Virginia IN: FOD SU: ERN

TS -- NY016 -- 8949 01/26/93 09:33 EST
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Date:Jan 26, 1993
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