ARDEN GROUP SALES INCREASE, BUT NET INCOME TAKES TUMBLE

LOS ANGELES -- Arden Group here reported sales gains for the second quarter and half ended June 29, but net income dropped for the period.

% to $123.5 million from $120.3 million the year before. Same-store sales were up 2.2% for the quarter and 1.5% for the half.

Net earnings fell 60.2% to $895,000 in the quarter from $2.2 million in the prior-year period. In the half, net income decreased 72% to $1.03 million from $3.7 million a year earlier. The declines stemmed from a new store opening in January, higher depreciation expenses and the recognition of certain nonrecurring union benefit credits in 1995, the company reported.

Arden Group operates 12 Gelson's and Mayfair supermarkets in southern California.

2ND-QUARTER RESULTS

Qtr Ended 6/29/96 7/1/95

Sales $62.9 million $60.3 million

Change + 4.2%

Same-store + 2.2%

Net Income $895,000 $2.2 million

Change -- 60.2%

Inc/Share 81 cents $1.71

26 Weeks 1996 1995

Sales $123.5 million $120.3 million

Change + 2.7%

Same-store + 1.5%

Net Income $1.03 million $3.7 million

Change -- 72%

Inc/Share 92 cents $2.79