URGI United Retail Grp. (MM)

United Retail Group, Inc. (NASDAQ-GM: �URGI�) today announced that net sales increased 7% to $37.8 million during October 2006 from $35.4 million during October 2005. Comparable store sales increased 6% for the month on top of an 11% increase last year. Net sales increased 6% for the third fiscal quarter to $104.2 million from $98.1 million in the same period last year. Comparable store sales increased 6% for the fiscal quarter on top of an 8% increase last year. Net sales increased 5% for the fiscal year to date to $334.6 million from $319.3 million in the same period last year. Comparable store sales increased 5% for the fiscal year to date on top of an 11% increase last year. Comparable store sales data does not include online (�Shop @ Home�) sales. Shop @ Home sales increased 41% for the month of October, 41% for the fiscal quarter and 52% for the fiscal year to date. Raphael Benaroya, the Company�s Chairman, President and Chief Executive Officer, commented: �We are pleased with our continuing strong sales performance in October. We are particularly gratified to have achieved a 6% comparable store increase for both the month and the quarter on top of the strong increases we generated in the same periods of 2005. Importantly, average transactions per store increased for the month, quarter and year to date period. Our consistent growth of comparable store sales over the past nine quarters and our improved transactions demonstrate the effectiveness of our merchandise assortment repositioning.� Mr. Benaroya concluded: �Total merchandise inventories (including Shop @ Home inventory but excluding in-transit inventory) at month end were approximately 10% higher than at the end of the third quarter last year. Commensurately, the business is positioned for a good holiday sales season.� United Retail Group, Inc. is a specialty retailer of large-size women�s fashion apparel, footwear and accessories featuring AVENUE� brand merchandise. The Company operates 491 AVENUE� stores with 2,162,000 square feet of selling space, as well as the AVENUE.COM� 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. United Retail Group, Inc. (NASDAQ-GM: "URGI") today announced that net sales increased 7% to $37.8 million during October 2006 from $35.4 million during October 2005. Comparable store sales increased 6% for the month on top of an 11% increase last year. Net sales increased 6% for the third fiscal quarter to $104.2 million from $98.1 million in the same period last year. Comparable store sales increased 6% for the fiscal quarter on top of an 8% increase last year. Net sales increased 5% for the fiscal year to date to $334.6 million from $319.3 million in the same period last year. Comparable store sales increased 5% for the fiscal year to date on top of an 11% increase last year. Comparable store sales data does not include online ("Shop @ Home") sales. Shop @ Home sales increased 41% for the month of October, 41% for the fiscal quarter and 52% for the fiscal year to date. Raphael Benaroya, the Company's Chairman, President and Chief Executive Officer, commented: "We are pleased with our continuing strong sales performance in October. We are particularly gratified to have achieved a 6% comparable store increase for both the month and the quarter on top of the strong increases we generated in the same periods of 2005. Importantly, average transactions per store increased for the month, quarter and year to date period. Our consistent growth of comparable store sales over the past nine quarters and our improved transactions demonstrate the effectiveness of our merchandise assortment repositioning." Mr. Benaroya concluded: "Total merchandise inventories (including Shop @ Home inventory but excluding in-transit inventory) at month end were approximately 10% higher than at the end of the third quarter last year. Commensurately, the business is positioned for a good holiday sales season." 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 491 AVENUE(R) stores with 2,162,000 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.