URGI United Retail Grp. (MM)

United Retail Group, Inc. (NASDAQ NM: URGI) today announced that net sales increased 7% to $39.4 million for April 2006 from $36.6 million for April 2005. Comparable store sales increased 8% for the month and 5% for March and April combined. For the fiscal quarter, net sales increased 3% to $109.4 million compared with $106.5 million in the same quarter last year. Comparable store sales for the fiscal quarter increased 3%. Online sales, which we call "Shop @ Home" sales, are not included in comparable store sales. Shop @ Home sales increased 59% for the month of April and 73% for the fiscal quarter versus the comparable periods of 2005. Raphael Benaroya, the Company's Chairman of the Board, President and Chief Executive Officer, commented: "While April results benefited from the Easter shift, I am pleased with our combined 5% comp store increase for March and April. This underlying positive trend, along with the continued strong performance in the hot and warm regions, are positive indicators as we approach the summer months." 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 496 AVENUE(R) stores with 2,182,000 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 factors, among others, could 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, consumer preferences and overall economic conditions; the impact of competition and pricing; variations in weather patterns; fluctuations in consumer acceptance of the Company's products; changes in the ability to develop new merchandise; 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.