Marsh Supermarkets, Inc. Second Quarter Results of Operations Reports Operating Income Up 8%

INDIANAPOLIS, Indiana, UNITED STATES


INDIANAPOLIS, Nov. 27, 2000 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 16 weeks ended Oct. 14, 2000.

Sales and other revenues for the second quarter were $600,457,000 -- up 12.3% from the prior year's $534,729,000. Of the $66 million increase in revenues, $56 million was from retail and $10 million was from wholesale operations. Sales in comparable stores increased 2.6%, which is above recent industry trends.

Operating income was $11,080,000 compared to $10,222,000 last year -- an 8.4% improvement. This is the seventeenth consecutive quarter of operating income improvement and was achieved notwithstanding significant infrequently occurring income in last year's comparable quarter. Last year, the cigarette manufacturers increased prices resulting in $1.2 million of additional income on inventory purchased prior to the price increase. Retail prices were immediately increased on this inventory. A smaller price increase occurred this year with a $400,000 gain. The quarter was also affected by pre-opening expense for two new stores.

For the quarter, EBITDA was $21,003,000 compared to $20,360,000 last year -- a 3.2% improvement.

The Company continues to invest in new stores and, as a result, our interest expense was $7,857,000 versus $6,560,000 last year. Net income was also impacted by a higher effective tax rate.

For the quarter, net income was $2,139,000 compared to $2,615,000 last year. Earnings per diluted share were $.25 versus $.30 last year -- a 16.7% decrease.

The Company continues to buy back stock on the open market in accordance with its repurchase plan. During the quarter, the Company repurchased 62,100 shares of Marsh Class A stock and 114,278 shares of Marsh Class B stock. To date, the Company has spent $10.8 million of the $12.0 million authorized for repurchase.

During the quarter, the Company acquired three convenience stores and opened two new convenience stores. Three of the five Ross stores purchased last quarter are now being operated under the LoBill banner, and a Ross store located adjacent to a Marsh Supermarket was closed. The fifth Ross store is operating as a Savin*$.

Subsequent to quarter end, Marsh opened two new upscale supermarkets, one of which includes a Village Pantry fuel kiosk on the parking lot.

Marsh is a leading regional chain operating 72 Marsh(r), 27 LoBill Foods(r), 183 Village Pantry( convenience stores and two Savin*$(r) limited-selection, every day low-price stores. The Company also operates Convenience Store Distributing Company, a wholesale distributor serving 1,037 non-affiliated stores in nine states; Crystal Food Service (tm), a specialist in catering, business cafeteria management, vending and concessions; Primo Banquet catering and Conference Centers; and McNamara Florist, and Enflora(r) -- Flowers for Business.



                      MARSH SUPERMARKETS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               (In thousands except per share amounts)
                             (Unaudited)
 
                            16 Weeks Ended         28 Weeks Ended
                         Oct. 14,    Oct. 9,    Oct. 14,    Oct. 9,
                           2000       1999        2000        1999

 Sales and
  other revenues         $600,457   $534,728   $1,037,066   $928,995
 Cost of
  merchandise
  sold, including
  warehousing and
  transportation          453,888    405,720      783,657    701,737
 Gross profit             146,569    129,009      253,409    227,258
 Selling, general
  and administrative      126,981    110,754      216,755    193,542
 Depreciation               8,508      8,033       14,604     13,673
 Operating income          11,080     10,222       22,050     20,043
 Interest and debt
  expense amortization      7,857      6,560       13,628     11,431
 Income before
  income taxes              3,223      3,662        8,422      8,612
 Income taxes               1,084      1,047        2,806      2,715
 Net income              $  2,139   $  2,615     $  5,616   $  5,897


 Earnings per
  common share           $    .26   $    .31     $    .68   $    .71

 Earnings per
  common share
  - assuming dilution    $    .25   $    .30     $    .63   $    .65

 Dividends per share     $    .11   $    .11     $    .22   $    .22


                       MARSH SUPERMARKETS, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)
                             (Unaudited)

                                Oct. 14,               Oct. 9,    
                                  2000                  1999
 
Assets
Current assets:
  Cash and equivalents          $39,219              $  28,462
  Accounts receivable            43,425                 36,257
  Inventories (a)               131,681                118,260
  Prepaid expenses                5,378                  5,086
  Recoverable income taxes          246                  1,597
      Total current assets      219,949                189,662
Property and equipment, 
 less allowances for 
 depreciation                   301,024                288,545
Other assets                     51,540                 53,134
                               $572,513               $531,341

Liabilities and Shareholders' Equity
Current liabilities:
  Notes payable to bank        $  --                 $  19,204
  Accounts payable               84,719                 75,420
  Accrued liabilities            56,901                 47,902
  Current maturities of 
   long-term liabilities          2,758                  2,893
       Total current 
        liabilities             144,378                145,419

Long-term liabilities:
  Long-term debt                250,085                217,869
  Capital lease obligations      14,005                 13,367
       Total long-term 
        liabilities             264,090                231,236

Deferred items:
   Income taxes                  12,862                 12,291
   Other                         16,473                 13,482
       Total deferred items      29,335                 25,773

Shareholders' Equity:
  Common stock, 
   Classes A and B               25,588                 25,423
  Retained earnings             121,131                112,863
  Cost of common 
   stock in treasury         (    9,867)            (    6,949)
  Deferred cost
   - restricted stock        (    1,119)            (    1,963)
  Notes receivable
   - stock options           (    1,023)            (      461)
       Total shareholders' 
        equity                  134,710                128,913
                               $572,513               $531,341

(a) less LIFO reserve:  October 14, 2000 - $8,518; 
    October 9, 1999 - $12,316

CONTACT: Marsh Supermarkets, Inc.
         Douglas W. Dougherty, Chief Financial Officer
         (317) 594-2627