Press Release Details

United Natural Foods Reports Results for the Second Quarter Ended January 31, 2003

March 4, 2003

Earns $0.28 per Diluted Share

Net sales, including acquisitions, for the second quarter of fiscal 2003 were $338.4 million, an increase of 18.6% from the $285.5 million recorded in the second quarter of fiscal 2002. This included growth in the mass market and independent distribution channels of approximately 30% and 28%, respectively. Sales in the supernatural distribution channel were unchanged compared to the same period last year due primarily to the previously announced transition of the Company's former second-largest customer to a new primary distributor. These results included a full quarter of net sales from the acquisition of Blooming Prairie and one month of net sales from Northeast Cooperatives acquired on December 31, 2002. Sales growth for the quarter, excluding the effect of acquisitions, was 2.3%. Sales growth excluding the effect of acquisitions and sales in each period to the Company's former second-largest customer was 17.4%.

Net income for the second quarter of fiscal 2003, excluding the effect of special items, increased 4.1% to $5.4 million, or $0.28 per diluted share, compared to $5.2 million, or $0.27 per diluted share, excluding special items, for the second quarter of fiscal 2002. The special items for the second quarter of fiscal 2003 consisted of non-cash income related to the change in fair value of interest rate swaps and related option agreements caused by favorable changes in yield curves. In addition, special items included labor costs related to the expansion of the Company's Chesterfield, New Hampshire distribution facility. Special items recorded during the second quarter of fiscal 2002 included non-cash income related to the change in fair value of interest rate swaps and related option agreements caused by favorable changes in yield curves. In addition, special items included restructuring, asset impairment and other costs related to the relocation of the Company's Atlanta, Georgia facility. Net income including special items increased 5.6% to $5.5 million, or $0.28 per diluted share, for the second quarter of 2003 compared to $5.2 million, or $0.27 per diluted share, in the same period last year.

    The following table details the amounts and effect of these items:


     Quarter Ended January 31, 2003
     (in thousands, except               Pretax                   Per diluted
      per share data)                    Income      Net of Tax      share

     Income, excluding special items:    $9,023        $5,414        $0.28
     Less: special items (income)/
      expense Interest rate swap
      agreements (change in value of
      financial instruments)               (226)         (136)       (0.01)
     Costs related to the expansion
      of Chesterfield, New Hampshire
      (included in operating expenses)       69            42         0.00
     Income, including special
      items:                             $9,180        $5,508         $0.28*

     *Total reflects rounding


     Quarter Ended January 31, 2002
     (in thousands, except               Pretax                   Per diluted
      per share data)                    Income      Net of Tax      share

     Income, excluding special items:    $8,667        $5,200        $0.27
     Less: special items (income)/
      expense Interest rate swap
      agreement (change in value of
      financial instruments)             (1,358)         (815)       (0.04)
     Costs related to relocating
      Atlanta, Georgia distribution
      center (included in operating
      expenses)                           1,335           801         0.04
     Income, including special items:    $8,690        $5,214        $0.27

Steven Townsend, President and Chief Executive Officer of United Natural Foods, said, "Robust consumer demand for natural foods continues to drive the market and we believe that our continued success demonstrates that our operating strategies, designed to meet the long-term needs of customers while being their leading natural products resource, are working. Operationally, we continue to focus on the integration of our recent acquisitions, and have made significant progress on the expansion of our Chesterfield, New Hampshire distribution center to accommodate the Northeast Cooperatives business. Additionally, we are gaining efficiencies in our purchasing practices and operating expenses as we integrate Blooming Prairie into our Western region."

The Company believes that sales growth for the third quarter of fiscal 2003 will be in the 18% - 22% range. The Company expects sales growth in the mid-teens during the third quarter of fiscal 2003 for the business excluding the impact of its recent acquisitions and sales to the Company's former second-largest customer. The earnings per diluted share outlook for the quarter ending April 30, 2003 and the fiscal year ending July 31, 2003 is $0.30 - $0.32 and $1.18 - $1.20, respectively, consistent with previous guidance.

Conference Call

Management will conduct a conference call and audio webcast at 11:00 a.m. ET on March 4, 2003 to review the Company's quarterly results, market trends and future outlook. The conference call dial-in number is 703-871-3862. The audio webcast will be available, on a listen only basis, via the Internet at www.viavid.com or at the Investor Relations section of the Company's website, www.unfi.com . Please allow extra time to the webcast to visit the site and download any software required to listen to the Internet broadcast. The online archive of the webcast will be available for 30 days.

About United Natural Foods

United Natural Foods, Inc. carries and distributes over 30,500 products to more than 11,000 customers nationwide. The Company serves a wide variety of retail formats including conventional supermarket chains, natural product superstores and independent retail operators.

For more information on United Natural Foods, Inc., visit the Company's web-site at www.unfi.com .

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding United Natural's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, including but not limited to general business conditions, the impact of competition and our dependence on principal customers, see "Risk Factors" in the Company's quarterly report on Form 10-Q filed with the Commission on December 13, 2002, and its other filings under the Securities Exchange Act of 1934, as amended. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. United Natural is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws.

                 UNITED NATURAL FOODS, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)

                               QUARTER ENDED             SIX MONTHS ENDED
    (In thousands, except       JANUARY 31,                JANUARY 31,
     per share data)        2003          2002          2003         2002

    Net sales             $338,447      $285,461     $649,440      $565,776
    Cost of sales          272,360       228,949      522,518       454,263
        Gross profit        66,087        56,512      126,922       111,513
    Operating expenses      55,178        47,258      106,020        92,282
    Restructuring and
     asset impairment charges    -           424            -           424
    Amortization of
     intangibles                66            13          104            77
        Total operating
         expenses           55,244        47,695      106,124        92,783
        Operating income    10,843         8,817       20,798        18,730
    Other expense (income):
      Interest expense       2,072         1,643        3,919         3,389
      Change in value of
       financial instruments  (226)       (1,358)       1,479         2,429
      Other, net              (183)         (158)        (420)         (114)
        Total other expense  1,663           127        4,978         5,704
        Income before
         income taxes        9,180         8,690       15,821        13,026
    Income taxes             3,672         3,476        6,328         5,210
        Net income          $5,508        $5,214       $9,492        $7,816
    Per share data
     (basic):
        Net income           $0.29         $0.28        $0.50         $0.42
    Weighted average
     basic shares of
     common stock           19,119        18,915       19,113        18,790
    Per share data
     (diluted):
        Net income           $0.28         $0.27        $0.49         $0.41
    Weighted average
     diluted shares of
     common stock           19,526        19,371       19,471        19,217


                 UNITED NATURAL FOODS, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                  UNAUDITED


    (In thousands)                                 JANUARY 31,      JULY 31,
                                                      2003            2002

    ASSETS
    Current assets:
      Cash                                           $11,827        $11,184
      Accounts receivable, net                        84,785         84,303
      Notes receivable, trade                            448            513
      Inventories                                    151,696        131,932
      Prepaid expenses                                 7,790          4,493
      Deferred income taxes                            4,612          4,612
      Refundable income taxes                            303             58
        Total current assets                         261,461        237,095

    Property & equipment, net                         97,956         82,702

    Other assets:
      Notes receivable, trade, net                     2,954            956
      Goodwill                                        60,564         31,399
      Intangibles, net                                 1,286            248
      Other, net                                       2,184          2,057
        Total assets                                $426,405       $354,457

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Notes payable - line of credit                $137,501       $106,109
      Current installments of long-term debt           1,595          1,658
      Current installment of obligations under
       capital leases                                    923          1,037
      Accounts payable                                70,342         52,789
      Accrued expenses                                26,715         18,185
      Financial instruments                            7,099          5,620
        Total current liabilities                    244,175        185,398
     Long-term debt, excluding current installments   10,481          7,677
     Obligations under capital leases, excluding
      current Installments                             1,365            995
        Total liabilities                            256,021        194,070

    Stockholders' equity:
    Preferred stock, $.01 par value, authorized
     5,000 shares; none issued and outstanding
    Common stock, $.01 par value, authorized
     50,000 shares; issued and outstanding
     19,135 at January 31, 2003; issued and
     outstanding 19,106 at July 31, 2002                 191            191
      Additional paid-in capital                      80,135         79,711
      Unallocated shares of ESOP                      (2,013)        (2,094)
      Retained earnings                               92,071         82,579
        Total stockholders' equity                   170,384        160,387

    Total liabilities and stockholders' equity      $426,405       $354,457


                 UNITED NATURAL FOODS, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)

                                                         SIX MONTHS ENDED
                                                           JANUARY 31,
                                                       2003           2002
    (In thousands)
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                        $9,492         $7,816
      Adjustments to reconcile net income to
       net cash provided by operating activities:
        Depreciation and amortization                  5,051          3,783
        Change in fair value of financial
         instruments                                   1,479          2,429
        (Gain) Loss on disposals of property &
         equipment                                        (6)           296
        Deferred income tax benefit                        -           (605)
        Provision for doubtful accounts                1,699          1,045
        Changes in assets and liabilities, net of
         acquired companies:
      Accounts receivable                              5,242        (10,280)
      Inventory                                        2,934        (15,864)
      Prepaid expenses                                (1,328)          (307)
      Refundable income taxes                           (246)          (426)
      Other assets                                    (1,603)        (1,348)
      Notes receivable, trade                         (1,467)          (182)
      Accounts payable                                 2,658         14,083
      Accrued expenses                                 1,331          5,842
        Net cash provided by operating activities     25,236          6,282

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Purchases of acquired businesses, net of
       cash acquired                                 (43,724)            65
      Proceeds from disposals of property and
       equipment                                          47             21
      Capital expenditures                           (11,221)       (20,437)
        Net cash used in investing activities        (54,898)       (20,351)

    CASH FLOWS FROM FINANCING ACTIVITIES:
      Net borrowings under note payable               31,392         31,961
      Repayments on long-term debt                      (854)       (20,411)
      Principal payments of capital lease obligations   (657)          (543)
      Proceeds from exercise of stock options            424          1,448
        Net cash provided by financing activities     30,305         12,455

    NET INCREASE (DECREASE) IN CASH                      643         (1,614)
    Cash at beginning of period                       11,184          6,393
    Cash at end of period                            $11,827         $4,779

    Supplemental disclosures of cash flow information:
      Cash paid during the period for:
        Interest                                      $3,798         $3,299
        Income taxes, net of refunds                  $3,911         $7,095

    In the six months ended January 31, 2003 and 2002, the Company incurred $0
    and $628, respectively, of capital lease obligations.

    In the six months ended January 31, 2002 the fair value of common stock
    issued for the acquisition of subsidiary was $4,250.

CONTACT: Rick Puckett, Chief Financial Officer of United Natural Foods, +1-860-779-2800; or General Information, Joseph Calabrese, +1-212-445-8434, or Analyst Information, Vanessa Schwartz, +1-212-445-8433, both of FRB Weber Shandwick