Yesterday, Jack H. Brown, Chairman, President and Chief Executive Officer of Stater Bros. Holdings Inc. announced record sales for the fifty-two week fiscal year ended September 24, 2000.

The Company set a sales record for the fifty-two week 2000 fiscal year. Sales for fiscal 2000 were $2.418 billion, an increase of 32.1% when compared to sales of $1.830 billion for the fifty-two week 1999 fiscal year. Sales for the fourth quarter ended September 24, 2000 (fiscal 2000) continued to be strong at $606.0 million, an increase of 19.8% when compared to $505.8 for the thirteen week fourth quarter ended on September 26, 1999 (fiscal 1999). In fiscal 2000, like store sales increase 1.9% over fiscal 1999, before erosion in sales of approximately .5% to the supermarkets acquired from Albertson's during August of 1999. For the fourth quarter of 2000, like stores sales increased 2.1% over fourth quarter 1999 before erosion in sales of approximately .6% to the acquired stores. Sales for fiscal 1999 includes the sales for the acquired supermarkets for the approximate 6 week period from the date of each store's acquisition until September 26, 1999. The 43 acquired stores were open for all of fiscal 2000 and their sales are included in fiscal 2000 sales.

Brown said, ``We are pleased with our increased sales volume and like store comparisons. We look forward to a continuation of these trends.''

Operating cash flow (EBITDA) is defined as earnings before extraordinary gain or loss, interest expense, income taxes, depreciation and amortization and acquisition integration expenses. EBITDA amounted to $21.4 million and $71.2 million for the fourth quarter and year to date periods in fiscal 2000 compared to $19.6 million and $69.5 million for the like periods of fiscal 1999.

The Company reported a net loss for the fiscal year 2000 of $6.2 million compared to a net loss in fiscal year 1999 of $9.0 million. The results of the fourth quarter for fiscal 2000 reported net income of $1.1 million compared to net loss in the fourth quarter of fiscal 1999 of $18.3 million which included an extraordinary loss of $17.3 million (after taxes) from early extinguishment of debt.

Brown said, ``The results of the fourth quarter show the continuing commitment of the our management team to maintain the momentum begun in the third quarter. Our people made a commitment and focused on the problems we experienced in the second quarter due to higher than normal labor, training and advertising cost and lower than normal profit margins associated with the acquisition of the 43 former Albertson's and Lucky Supermarkets. We have continued to focus on this commitment as we begin fiscal 2001.''

Stater Bros. Holdings Inc. is the largest privately held Supermarket Chain in Southern California and operates 155 supermarkets through its wholly owned subsidiary, Stater Bros. Markets.

For information contact: Jack H. Brown, Chairman, President and Chief Executive Officer at (909) 783-5000.

                          STATER BROS. HOLDINGS INC.
                       Condensed Results of Operations
                            (Amount in Thousands)
                                  Unaudited

                            Thirteen Weeks Ended      Fifty-two Weeks Ended
                           9/24/00      9/26/99       9/24/00       9/26/99

    Sales                 $605,956      $505,837   $2,417,710    $1,830,195

    Gross Profit           153,626       129,760      598,642       442,576

    Operating Expenses:
     General and
      administrative       133,699       111,288      532,147       377,195
     Depreciation and
      amortization           6,693         4,778       25,580        16,591
     Acquisition integration
      expenses                  --         5,590        4,594         5,590

    Total operating
     expenses              140,392       121,656      562,321       399,376

    Operating profit        13,234         8,104       36,321        43,200

    Interest income          1,054           920        3,244         3,308
    Interest expense       (13,172)      (10,931)     (53,680)      (33,630)
    Gain (loss) from
     unconsolidated
     affiliate                 402           206        1,483         1,130
    Other, net                 (24)          (38)         (27)         (357)

    Earnings before income
     taxes and
     extraordinary charge    1,494        (1,739)     (12,659)       13,651

     Income tax (benefit)      434          (784)      (5,369)        5,372

    Net income before
     extraordinary charge    1,060          (955)      (7,290)        8,279

    Extraordinary gain
     (loss) (1)(2)              --       (17,311)       1,123       (17,311)

    Net Income              $1,060      $(18,266)     $(6,167)      $(9,032)

    (1) Extraordinary loss from early extinguishment of debt, net tax effect
        of $(11,233)

    (2) Extraordinary gain from early extinguishment of debt, net of tax
        effect of $773


                          STATER BROS. HOLDINGS INC.
                           Condensed Balance Sheet
                            (Amount in Thousands)
                                  Unaudited

                                                     9/24/00        9/26/99
                    Assets
      Current Assets
    Cash                                             $62,631        $93,352
    Lease guarantee escrow                            13,180             --
    Receivables                                       28,181         28,296
    Inventories                                      165,332        155,361
    Other                                             20,239         19,277

      Total Current Assets                           289,563        296,286

    Investments in unconsolidated subsidiary          11,082          9,599

    Property, Plant & Equipment, net                 270,514        259,729

    Deferred debt issue cost, net                     14,569         16,774
    Lease guarantee escrow                                --         11,280
    Other                                              9,560         10,249

    Total Assets                                    $595,288       $603,917


       Liabilities and Stockholders' (deficit)
      Current Liabilities
    Accounts payable                                $100,777        $97,169
    Accrued Expenses                                  70,022         66,258
    Current portion of capital lease obligations
     and long term debt                                6,994          1,944

    Total current liabilities                        177,793        165,371

    Long-Term Debt, net current portion              439,000        455,048
    Capital lease obligations, net current portion    13,679         15,625
    Other long-term liabilities                       14,070         10,960

    Common stockholders' (deficit)                   (49,254)       (43,087)

    Total Liabilities and Stockholders' (deficit)   $595,288       $603,917