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UNITED NATURAL GETS BOOST FROM WILD OATS

DAYVILLE, Conn. -- United Natural Foods here last week reported that sales grew 21.7% during the fourth quarter and 21% for its fiscal year.The distributor cited the reacquisition in March of the supply business of Wild Oats Markets and strong trends in natural foods overall. Boulder, Colo.-based Wild Oats represented about 9% of United's $446.4 million in fourth-quarter sales. Though Wild Oats recently

DAYVILLE, Conn. -- United Natural Foods here last week reported that sales grew 21.7% during the fourth quarter and 21% for its fiscal year.

The distributor cited the reacquisition in March of the supply business of Wild Oats Markets and strong trends in natural foods overall. Boulder, Colo.-based Wild Oats represented about 9% of United's $446.4 million in fourth-quarter sales. Though Wild Oats recently encountered issues affecting its turnaround, observers said United's results show the underlying natural-food business remains solid.

"People were concerned that Wild Oats' problems would impact United, but sales among its customers have been strong," Gary Giblen, director of research for C L King Associates, New York, told SN. "Natural foods overall remain quite strong."

For the fiscal year ended July 31, United said sales increased 21% to $1.7 billion, and earnings increased 58.2% to $32 million, or 81 cents a share.

United is currently in discussions regarding extending its supply agreement with its largest customer, Austin, Texas-based Whole Foods Market, said Steven Townsend, United's president and chief executive officer. The current agreement expires Dec. 31. "We're optimistic we'll get it done by the end of the year," he said, adding that the two companies have "operated for 10 years with a three-page document."

Townsend said United began operating its new Iowa City, Iowa, distribution center during the fourth quarter United has also completed construction of a new facility in Dayville, Conn.

4TH-QUARTER RESULTS

Qtr Ended: 7/31/04; 7/31/03

Sales: $446.4 million; $366.8 million

Change: +21.7%

Net Income: $9.6 million; $5.0 million

Change:+93.1%

Inc/Share: 24 cents; 13 cents

52 Weeks: 2004; 2003

Sales: $1.7 billion; $1.4 billion

Change: +21%

Net Income: $32 million; $20.2 million

Change: +58.2%

Inc/Share: 81 cents; 53 cents