URGI United Retail Grp. (MM)

United Retail Group, Inc. (NASDAQ-GM: �URGI�) today announced that net sales were $36.9 million for April 2007 compared with $39.4 million for April 2006. Comparable store sales decreased 8% for the month. The Easter week occurred in the fiscal month of March this year and in the fiscal month of April last year. Comparable store sales increased 2% for the combined March and April period. For the fiscal quarter, net sales were $111.0 million compared with $109.4 million in the same quarter last year. Comparable store sales for the fiscal quarter were flat. Comparable store sales data does not include online sales from avenue.com. Online sales increased 44% for the month of April and 51% for the fiscal quarter versus the comparable period of 2006. Raphael Benaroya, the Company�s Chairman of the Board, President and Chief Executive Officer, commented: �Despite April sales results which reflect the effect from the shift in Easter, comparable store sales for the combined March and April period increased 2%.� He added: �For the quarter, our sales performance was affected by the unseasonable weather in many regions of the country. In response, we intensified marketing and promotional activity. We currently expect to report a significant year-over-year decrease in operating income. It is my strong view that these factors are transitory in nature and not due to any fundamental issues with the business.� He concluded: �We are continuing to direct our efforts toward our key growth initiatives for 2007, which are focused on improving store productivity, opening new stores, expanding AVENUE BODY�, and further growing online sales.� 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 485 AVENUE� stores with 2,137,000 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 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.