URGI United Retail Grp. (MM)

United Retail Group, Inc. (NASDAQ-GM: �URGI�) today announced that net sales increased 1% to $46.5 million for June 2007 from $46.0 million for June 2006. Comparable store sales for the month decreased 1% versus a 5% increase for June 2006. For the fiscal quarter-to-date, net sales increased 3% to $91.0 million from $88.1 million in the same period last year. For the fiscal quarter-to-date, comparable store sales increased 1% on top of a 7% increase for the same period last year. For the fiscal year-to-date, net sales increased 2% to $202.0 million from $197.5 million in the same period last year. Comparable store sales for the fiscal year-to-date increased 1% on top of a 5% increase for the same period last year. Online sales increased 55% for the month of June, 58% for the fiscal quarter-to-date, and 54% for the fiscal year-to-date versus the comparable periods of fiscal 2006. Raphael Benaroya, the Company�s Chairman, President and Chief Executive Officer, commented: �In June we increased our promotional activity to stimulate sales that had been impacted by soft consumer spending. Consequently, average retail price declined, but transactions increased by some 7% over the same period last year. We view the factors leading to the decline in monthly comparable sales as transitory. Our business concept remains sound and we continue to be focused on our growth strategy.� 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 486 AVENUE� stores with 2,142,000 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.