URGI United Retail Grp. (MM)

United Retail Group, Inc. (NASDAQ-NMS: "URGI") today announced that net sales increased 14% to $27.7 million for January 2006 from $24.3 million for January 2005. Comparable store sales increased 15% for the month on top of an 8% increase in January 2005. For the fiscal fourth quarter, net sales increased 11% to $119.4 million from $107.9 million in the prior year period. Comparable store sales increased 12% for the fiscal fourth quarter on top of an 8% increase in the prior year period. For the fiscal year 2005, net sales increased 10% to $438.7 million from $399.3 million last year. Comparable store sales increased 12% for the fiscal year on top of a 2% increase in the prior year. Comparable store sales data does not include online ("Shop @ Home") sales. Shop @ Home sales increased 93% for the month of January, 137% for the fiscal fourth quarter and 120% for the fiscal year. Raphael Benaroya, the Company's Chairman, President and Chief Executive Officer, commented: "The positive sales trend this year continued through the fourth quarter. Sales growth continued to be driven by a solid increase in transactions per average store, which reflects consistent customer acceptance of the merchandise. Further, the sales gains occurred across a broad range of product categories and across the country." United Retail Group, Inc. is a specialty retailer of large-size women's fashion apparel, footwear and accessories featuring AVENUE(R) brand merchandise. The Company operates 500 AVENUE(R) stores with 2,194,000 square feet of selling space, as well as the AVENUE.COM(R) website at www.avenue.com. The above release contains certain brief forward-looking statements concerning the Company's operations and performance. The Company cautions that any forward-looking statements are summary in nature, involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The following additional factors, among others, could also affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this release or otherwise made by management: threats of terrorism; war risk; shifts in consumer spending patterns, overall economic conditions; the impact of increased competition; variations in weather patterns; uncertainties relating to execution of the Company's product repositioning strategy; store lease expirations; increases in interest rates; the ability to retain, hire and train key personnel; risks associated with the ability of the Company's manufacturers to deliver products in a timely manner; political instability and other risks associated with foreign sources of production and increases in fuel costs. The reports filed by the Company with the Securities and Exchange Commission contain additional information on these and other factors that could affect the Company's operations and performance. The Company does not intend to update the forward-looking statements contained in the above release, which should not be relied upon as current after today's date.