Marsh Supermarkets Announces Third-Quarter Fiscal-2005 Earnings Per Diluted Share of $0.34 Compared With $0.29 for the Third Quarter of Fiscal 2004

INDIANAPOLIS, Indiana, UNITED STATES


INDIANAPOLIS, Feb. 15, 2005 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) today announced its financial results for the third quarter of fiscal 2005. Total revenues for the quarter, which ended January 1, 2005, increased to $403,642,000 from $388,771,000 for the third quarter of fiscal 2004. Net income grew to $2,673,000, or $0.34 per diluted share, for the third quarter of fiscal 2005 from $2,324,000, or $0.29 per diluted share, for the comparable period in fiscal 2004.

Don E. Marsh, Chairman and Chief Executive Officer, remarked, "As our third quarter results demonstrate, Marsh has continued to operate profitably in an environment that remains challenging competitively and economically. Although higher fuel prices drove much of our revenue growth for the third quarter, our continued investment in new and remodeled stores also contributed to growth in revenues for the third quarter of fiscal 2005, which represented our fifth consecutive quarterly increase in revenues. Since the third quarter of fiscal 2004, this investment included the opening of four new supermarkets and the remodeling of three supermarkets.

"During the third quarter of fiscal 2005, we opened a new Marsh Supermarket in Indianapolis and completed the remodeling of two Marsh Supermarkets in Carmel and Noblesville, Indiana, while closing one Village Pantry store in Linden, Indiana. Subsequent to the end of the third quarter, we have opened a new Marsh Supermarket in Pendleton, Indiana, to replace a LoBill Foods store that closed. We also are scheduled to complete the remodeling of a Marsh Supermarket in Indianapolis and another in Marion, Indiana. Due both to our ongoing efforts to build our total revenues, as well as the opportunities created by changing demographics, we expect to continue to invest in our existing and new stores.

"We achieved our third-quarter growth in markets still affected by substantial unemployment and by competition. In addition, we are also continuing to experience higher commodities prices on a comparable-quarter basis, which pressured our gross margin for the third quarter. Despite this difficult operating environment, our ongoing focus on expense reduction, increased operating efficiency and asset management contributed to our sixth comparable-quarter increase in net income and earnings per diluted share.

"In summary, our third-quarter results reflect our determined efforts to defend and enhance our longstanding position of leadership in our core markets; provide our customers exactly the right mix of the high quality products, outstanding service and competitive pricing they seek; and produce profitable growth and increased shareholder value. We understand the substantial challenges we face to achieve these goals, and we remain committed to achieving success."

In light of recent industry communications, including a February 7, 2005, letter from the Chief Accountant of the Securities and Exchange Commission to the Chairman, Center for Public Company Audit Firms, the Company is reviewing certain aspects of its accounting for leases and leasehold improvements to determine whether certain changes in its accounting that may accelerate the recognition of rent and depreciation expenses are required by GAAP. The Company is discussing these matters with its independent auditors and has not reached a conclusion regarding whether a change is required or the amount of any such change. Based on a preliminary analysis, the Company believes that any adjustments that may result from its review would not affect cash flows and would not be material to its financial condition. The Company expects to complete its review during its fourth quarter ending April 2, 2005.

Marsh is a leading regional chain, operating 69 Marsh(r) supermarkets, 40 LoBill(r) Foods stores, 8 O'Malia(r) Food Markets, 162 Village Pantry(r) convenience stores, 1 Arthur's Fresh Market, and 1 Savin*$(SM), in Indiana and western Ohio. The Company also operates Crystal Food Services(SM), which provides upscale catering, cafeteria management, office coffee, coffee roasting, vending and concessions, restaurant management, Primo Banquet Catering and Conference Centers; Floral Fashions(r), McNamara(r) Florist and Enflora(r) - Flowers for Business.

Cautionary Note Regarding Forward-Looking Statements

This report includes certain forward-looking statements (statements other than those made solely with respect to historical fact). Actual results could differ materially and adversely from those contemplated by the forward-looking statements due to known and unknown risks and uncertainties, many of which are beyond the Company's control. The forward-looking statements and the Company's future results, liquidity and capital resources are subject to risks and uncertainties including, but not limited to, the following: the entry of new competitive stores and their impact on the Company; the Company's ability to improve comparable store sales; the level of discounting and promotional spending by competitors; the stability and timing of distribution incentives from suppliers; the level of margins achievable in the Company's operating divisions; softness in the local and national economies and the general retail food industry; the success of the Company's new and remodeled stores, including image and rebranding programs; potential interest rate increases on variable rate debt, as well as terms, costs and the availability of capital; the Company's ability to control employee medical costs; uncertainties regarding future real estate gains due to limited real estate holdings available for sale; the ability of the Company to predict and respond to changes in customer preferences and lifestyles; the ability of the Company to respond to commodity price fluctuations; uncertainties regarding gasoline prices and margins; the Company's ability to control costs including labor, rent, credit card, and workers compensation and general liability expense; the Company's ability to implement cost improvement initiatives; uncertainties related to state and federal taxation and tobacco and environmental legislation; the Company's ability to collect outstanding notes and accounts receivable; uncertainties associated with pension and other retirement obligations; the successful economic implementation of new technology; uncertainties related to the outcome of pending litigation; uncertainties regarding the outcome of the Company's review of certain aspects of lease and leasehold accounting; the impact of any acquisitions and dispositions; the timely and on budget completion of store construction, expansion, conversion and remodeling; and other known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.



                        MARSH SUPERMARKETS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              -------------------------------------------
               (In thousands, except per share amounts)
                              (Unaudited)

                           12 Weeks Ended          40 Weeks Ended
                      ----------------------  ----------------------
                      January 1,  January 3,  January 1,  January 3,
                         2005        2004        2005        2004
                      ----------  ----------  ----------  ----------
 Sales and other
  revenues            $  401,752  $  388,417  $1,325,222  $1,275,382
 Gains from
  sales of
  property                 1,890         354       3,164       2,168
                      ----------  ----------  ----------  ----------
 Total revenues          403,642     388,771   1,328,386   1,277,550
 Cost of
  merchandise
  sold, including
  warehousing and
  transportation,
  excluding
  depreciation           284,035     270,889     935,358     893,353
                      ----------  ----------  ----------  ----------
 Gross profit            119,607     117,882     393,028     384,197
 Selling, general
  and
  administrative         105,099     103,874     351,134     344,046
 Depreciation              5,815       5,781      19,387      19,203
                      ----------  ----------  ----------  ----------
 Operating income          8,693       8,227      22,507      20,948
 Interest                  4,475       4,268      14,462      14,763
 Other non-operating
  income                       -           -        (838)       (961)
                      ----------  ----------  ----------  ----------
 Income before
  income taxes             4,218       3,959       8,883       7,146
 Income taxes              1,545       1,635       3,288       2,881
                      ----------  ----------  ----------  ----------
 Net income           $    2,673  $    2,324 $     5,595  $    4,265
                      ==========  ==========  ==========  ==========



 Earnings per
  common share:
 Basic                $      .34  $      .29  $      .71  $      .54
 Diluted              $      .34  $      .29  $      .70  $      .53

 Dividends declared
  per share           $      .13  $      .13  $      .39  $      .39
                      ==========  ==========  ==========  ==========


 See notes to condensed consolidated financial statements.


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

                                        January 1,        January 3,
                                           2005              2004
                                      -------------     -------------
 Assets
 Current assets:

    Cash and equivalents              $      47,302     $      39,609
    Accounts receivable, net                 24,505            26,073
    Inventories                             133,731           128,064
    Prepaid expenses                          6,367             6,420
    Recoverable income taxes                  1,364             2,764
                                      -------------     -------------
        Total current assets                213,269           199,930
    Property and equipment,
      less allowances
      for depreciation                      304,272           299,150
    Other assets                             62,807            51,893
                                      -------------     -------------
          Total Assets                $     580,348     $     550,973
                                      =============     =============

 Liabilities and Shareholders'
   Equity
 Current liabilities:
    Accounts payable                  $      83,460     $      78,633
    Accrued liabilities                      52,487            51,936
    Current maturities of
     long-term liabilities                    5,361             3,364
                                      -------------     -------------
        Total current
         liabilities                        141,308           133,933

 Long-term liabilities:
    Long-term debt                          198,941           181,755
    Capital lease obligations                27,494            28,442
    Pension and
     post-retirement benefits                46,356            45,748
                                      -------------     -------------
      Total long-term
       liabilities                          272,791           255,945

 Deferred items:
    Income taxes                             15,830            15,501
    Gains from sale/leasebacks               16,846            14,972
    Other                                     3,359             1,620
                                      -------------     -------------
        Total deferred items                 36,035            32,093

 Shareholders' Equity:
    Common stock,
     Classes A and B                         26,615            26,455
    Retained earnings                       133,328           133,081
    Cost of common stock
      in treasury                           (15,690)         (15,062)
    Deferred cost -
     restricted stock                          (153)             (74)
    Notes receivable -
     stock purchases                            (11)             (14)
    Accumulated other
     comprehensive loss                     (13,875)         (15,384)
                                      -------------     -------------
      Total shareholders'
       equity                               130,214           129,002
                                      -------------     -------------
      Total Liabilities and
       Shareholders' Equity           $     580,348     $     550,973
                                      =============     =============


                       MARSH SUPERMARKETS, INC.
       RECONCILIATION OF SALES AND OTHER COMPARABLE REVENUES (A)

                                     12 Weeks Ended
                              --------------------------
                               January 1,     January 3,
                                  2005           2004      % Change
                              -----------    -----------  -----------
                                 (000)           (000)

 Total revenues                   403,641        388,771     3.82%

  Less:  other revenues,
   non-comparable sales
   and gains from sales
   of property (B)                 37,034         24,174
                              -----------    -----------

 Comparable supermarket and
   convenience store sales        366,607        364,597     0.55%

 Less:  gasoline sales             34,619         26,277
                              -----------    -----------

 Comparable supermarket
   and convenience store
   merchandise sales (C)          331,988        338,320   (1.87)%
                              ===========    ===========


 (A) Comparable stores include stores open at least one full year,
     replacement stores and format conversions.

 (B) Other revenues and non-comparable sales include sales and
     revenues of both Crystal Foodservice and McNamara, as well as
     supermarket and convenience store revenues from video rental,
     lottery tickets, check cashing fees and other sources.

 (C) The Company excludes gasoline sales from its analysis of
     comparable store sales because retail gasoline prices can
     fluctuate widely and frequently, making analytical comparisons
     difficult.


        

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