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<SEC-DOCUMENT>0000105418-07-000011.txt : 20070312
<SEC-HEADER>0000105418-07-000011.hdr.sgml : 20070312
<ACCEPTANCE-DATETIME>20070312130711
ACCESSION NUMBER:		0000105418-07-000011
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061230
FILED AS OF DATE:		20070312
DATE AS OF CHANGE:		20070312

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WEIS MARKETS INC
		CENTRAL INDEX KEY:			0000105418
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				240755415
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1226

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-05039
		FILM NUMBER:		07686995

	BUSINESS ADDRESS:	
		STREET 1:		1000 S SECOND ST
		STREET 2:		PO BOX 471
		CITY:			SUNBURY
		STATE:			PA
		ZIP:			17801
		BUSINESS PHONE:		570-286-4571

	MAIL ADDRESS:	
		STREET 1:		1000 S SECOND ST
		STREET 2:		PO BOX 471
		CITY:			SUNBURY
		STATE:			PA
		ZIP:			17801
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>wmk10k2006.htm
<DESCRIPTION>WEIS MARKETS, INC. 2006 ANNUAL REPORT ON FORM 10-K
<TEXT>
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    <title>Weis Markets, Inc. 2006 Form 10K</title>
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    <hr>


    <p><font size="3"><a href="#000">Table of
    Contents</a></font></p>

    <p align="center"><font size="3"><a name="00">UNITED
    STATES<br clear="left"></a>SECURITIES AND EXCHANGE
    COMMISSION<br clear="left">
    Washington, D.C. 20549<b><br clear="left"></b></font></p>

    <p align="center"><font size="3"><b>FORM 10-K<br clear=
    "left"></b></font></p>

    <p><font size="3">(Mark One)</font></p>

    <table cellspacing="0"
           cellpadding="5"
           width="100%">
        <tr>
            <td width="4%"
                align="center"
                valign="top"><font size="3">[X]</font></td>

            <td width="95%"
                align="left"
                valign="top"><font size="2">ANNUAL REPORT PURSUANT
                TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF 1934</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">For the fiscal year
                ended <b>December 30, 2006</b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">OR</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="top"><font size=
                "3">[&nbsp;&nbsp;]</font></td>

            <td align="left"
                valign="top"><font size="2">TRANSITION REPORT
                PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                EXCHANGE ACT OF 1934</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">For the transition
                period from __________to_________</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Commission File Number
                1-5039</font></td>
        </tr>
    </table>

    <p align="center"><font size="5"><b><u>WEIS MARKETS,
    INC</u>.</b></font><font size="3"><br clear="left">
    (Exact name of registrant as specified in its
    charter)</font></p>

    <table cellspacing="0"
           cellpadding="5"
           width="100%">
        <tr>
            <td width="47%"
                align="center"
                valign="top"><font size=
                "3"><u>PENNSYLVANIA<br clear="left"></u>(State or
                other jurisdiction of incorporation or
                organization)</font></td>

            <td width="4%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="47%"
                align="center"
                valign="top"><font size="3"><u>24-0755415<br clear=
                "left"></u>(I.R.S. Employer Identification
                No.)</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="top"><font size="3">1000 S. Second
                Street<br clear="left">
            P. O. Box 471<br clear="left">
            <u>Sunbury, Pennsylvania<br clear="left"></u>(Address
            of principal executive offices)</font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><br clear="left">
            <font size="3"><br clear="left">
            <u>17801-0471<br clear="left"></u>(Zip
            Code)</font></td>
        </tr>
    </table> <font size="3">Registrant's telephone number,
    including area code:&nbsp;<u>(570) 286-4571</u>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant's
    web address: www.weismarkets.com</font>

    <p><font size="3">Securities registered pursuant to Section
    12(b) of the Act:<br clear="left"></font></p>

    <table cellspacing="0"
           cellpadding="5"
           width="100%">
        <tr>
            <td width="48%"
                rowspan="2"
                align="center"
                valign="bottom"><font size="3"><u>Title of each
                class</u></font><br clear="left">
            <font size="3">Common stock, no par value</font></td>

            <td width="4%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="47%"
                rowspan="2"
                align="center"
                valign="bottom"><font size="3"><u>Name of each
                exchange on which registered</u><br clear="left">
            New York Stock Exchange</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>
    </table><font size="3">Securities registered pursuant to
    Section 12(g) of the Act&nbsp; <u>None</u></font>

    <p><font size="2">Indicate by check mark if the registrant is a
    well-known seasoned issuer, as defined in Rule 405 of the
    Securities Act. Yes
    [&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;[X]</font></p>

    <p><font size="2">Indicate by check mark if the registrant is
    not required to file pursuant to Section 13 or Section 15(d) of
    the Act. Yes
    [&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;[X]</font></p>

    <p><font size="2">Indicate by check mark whether the registrant
    (1) has filed all reports required to be filed by Section 13 or
    15(d) of the Securities Exchange Act of 1934 during the
    preceding 12 months (or for such shorter period that the
    registrant was required to file such reports) and (2) has been
    subject to such filing requirements for the past 90
    days.&nbsp;&nbsp;&nbsp;Yes
    [X]&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]</font></p>

    <p><font size="2">Indicate by check mark if disclosure of
    delinquent filers pursuant to Item 405 of Regulation S-K is not
    contained herein, and will not be contained, to the best of
    registrant's knowledge, in definitive proxy or information
    statements incorporated by reference in Part III of this Form
    10-K or any amendment to this Form 10-K.&nbsp; [X]</font></p>

    <p><font size="2"
          face="Times New Roman">Indicate by check mark whether the
          registrant is a large accelerated filer, an accelerated
          filer, or a non-accelerated filer. See definition of
          "accelerated filer and large accelerated filer" in Rule
          12b-2 of the Exchange Act.</font></p>

    <p align="center"><font size="2"
          face="Times New Roman">Large accelerated
          filer</font><font size=
          "2">&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"
          face="Times New Roman">Accelerated
          filer</font><font size="2">&nbsp;&nbsp;&nbsp;[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"
          face="Times New Roman">Non-accelerated
          filer</font><font size=
          "2">&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]</font></p>

    <p><font size="2"
          face="Times New Roman">Indicate by check mark whether the
          registrant is a shell company (as defined in Rule 12b-2
          of the Act).</font> <font size="2">Yes
          [&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;[X]</font></p>

    <p><font size="2">The aggregate market value of Common Stock
    held by non-affiliates of the Registrant is approximately
    $506,299,</font><font size="2"
          face="Times New Roman">000 as of July 1, 2006, the last
          business day of the most recently completed second
          quarter.<br clear="left"></font><font size="2">Shares of
          common stock outstanding as of March 2, 2007 -
          26,973,778.<br clear="left"></font></p>

    <p><font size="2">DOCUMENTS INCORPORATED BY
    REFERENCE:&nbsp;&nbsp;Selected portions of the Weis Markets,
    Inc. definitive proxy statement dated March 9, 2007 are
    incorporated by reference in Part III of this Form
    10-K.</font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>&nbsp;&nbsp;WEIS MARKETS,
            INC.</b></font>
        </center>
    </div>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b><u><a name="000">TABLE OF
    CONTENTS</a></u></b></font></p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><font size="3"><a href="#0"></a><a href="#00">FORM
                10-K</a></font></td>

            <td width="13%"
                align="center"
                valign="bottom"><font size=
                "3"><u>Page</u></font></td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#01"></a><a href="#100"></a><a href="#01">Part I</a></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#002"></a><a href="#002"></a><a href="#001">Item
                1. Business</a><a href="#002"></a></font></td>

            <td align="center"
                valign="bottom"><font size="3">1</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="left"
                valign="top"><font size="3"><a href="#0011">Item
                1a. Risk Factors</a><a href="#002"></a></font></td>

            <td align="center"
                valign="bottom"><font size="3">3</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="left"
                valign="top"><font size="3"><a href="#0012">Item
                1b. Unresolved Staff Comments</a><a href=
                "#002"></a></font></td>

            <td align="center"
                valign="bottom"><font size="3">4</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#002"></a><a href="#002">Item 2.
                Properties</a></font></td>

            <td align="center"
                valign="bottom"><font size="3">4</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#003"></a><a href="#003">Item 3. Legal
                Proceedings</a></font></td>

            <td align="center"
                valign="bottom"><font size="3">4</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#004"><font size="3">Item
                4. Submission of Matters to a Vote of Security
                Holders</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">4</font></td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#02"></a><a href="#02"></a><a href="#02">Part
                II</a><a href="#006"></a></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#005"><font size="3">Item
                5. Market for Registrant's Common Equity, Related
                Stockholder Matters and Issuer Purchases of Equity
                Securities</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">5</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#006"><font size="3">Item
                6. Selected Financial Data</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">5</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#007"><font size="3">Item
                7. Management's Discussion and Analysis of
                Financial Condition and Results of
                Operations</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">6</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#0071"></a><a href="#071"></a><a href=
                "#071"></a><a href="#0071">Item 7a. Quantitative
                and Qualitative Disclosures about Market
                Risk</a></font></td>

            <td align="center"
                valign="bottom"><font size="3">10</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#008"><font size="3">Item
                8. Financial Statements and Supplementary
                Data</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">11</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#009"><font size="3">Item
                9. Changes in and Disagreements With Accountants on
                Accounting and Financial Disclosure</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">27</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="left"
                valign="top"><a href="#0091"><font size="3">Item
                9a<font size="3"
                  color="#0000FF"
                  face="Times New Roman"><u>. Controls and
                  Procedures</u></font></font></a></td>

            <td align="center"
                valign="bottom"><font size="3">27</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="left"
                valign="top"><a href="#0092"><font size="3">Item
                9b<font size="3"
                  color="#0000FF"
                  face="Times New Roman"><u>. Other
                  Information</u></font></font></a></td>

            <td align="center"
                valign="bottom"><font size="3">27</font></td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#03"></a><a href="#300"></a><a href="#03">Part
                III</a></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#010"><font size="3">Item
                10. Directors, Executive Officers and Corporate
                Governance</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#011"><font size="3">Item
                11. Executive Compensation</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#012"><font size="3">Item
                12. Security Ownership of Certain Beneficial Owners
                and Management and Related Stockholder
                Matters</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#013"><font size="3">Item
                13. Certain Relationships and Related Transactions,
                and Director Independence</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#014"><font size="3">Item
                14. Principal Accountant Fees and
                Services</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">28</font></td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><font size="3"><a href=
                "#04"></a><a href="#04">Part IV</a></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#015"><font size="3">Item
                15. Exhibits, Financial Statement
                Schedules</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">29</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="left"
                valign="top"><a href="#0151"><font size="3">Item
                15(c<font size="3"
                  color="#0000FF"
                  face="Times New Roman"><u>)(3). Schedule II -
                  Valuation and Qualifying
                  Accounts</u></font></font></a></td>

            <td align="center"
                valign="bottom"><font size="3">30</font></td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><font size="3"><a href="#05">Signatures</a></font></td>

            <td align="center"
                valign="bottom"><font size="3">31</font></td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><a href="#21"><font size=
                "3">Exhibit 21 Subsidiaries of the
                Registrant</font></a></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><a href="#231"><font size=
                "3">Exhibit 23 Consent of Grant Thornton
                LLP</font></a></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><a href="#311"><font size=
                "3">Exhibit 31.1 Rule 13a-14(a) Certification -
                CEO</font></a></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><a href="#312"><font size=
                "3">Exhibit 31.2 Rule 13a-14(a) Certification -
                CFO</font></a></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><a href="#32"><font size=
                "3">Exhibit 32 Certification Pursuant to 18 U.S.C.
                Section 1350</font></a></td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="79%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p align="center">&nbsp;</p>

    <p align="center"><font size=
          "3"><b>&nbsp;</b></font><font size="3"><b><a name=
          "01">PART I</a></b></font></p>

    <p><font size="3"><b><a name="001">Item
    1.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business:</b><br clear="left">
    </font></p>

    <p><font size="3">Weis Markets, Inc. is a Pennsylvania business
    founded by Harry and Sigmund Weis in 1912 and incorporated in
    1924. The company is engaged principally in the retail sale of
    food in Pennsylvania and surrounding states. There was no
    material change in the nature of the company's business during
    fiscal 2006. The company's stock has been traded on the New
    York Stock Exchange since 1965 under the symbol "WMK." The Weis
    family currently owns approximately 64% of the outstanding
    shares. Robert F. Weis serves as Chairman of the Board of
    Directors, and Jonathan H. Weis, son of Robert F. Weis, serves
    as Vice Chairman and Secretary. Both are involved in the
    day-to-day operations of the business.</font></p>

    <p><font size="3">The company's retail food stores sell
    groceries, dairy products, frozen foods, meats, seafood, fresh
    produce, floral, prescriptions, deli/bakery products, prepared
    foods, fuel and general merchandise items, such as health and
    beauty care and household products. In addition, customer
    convenience is addressed at many locations by offering services
    such as third parties providing in-store banks, laundry
    services and take-out restaurants. The company advertises
    through various media, including circulars, newspapers, radio
    and television. Printed circulars are used extensively on a
    weekly basis to advertise featured items. The company utilizes
    a loyalty card program, "Weis Club Preferred Shopper," which
    provides shoppers with an opportunity to receive discounts,
    promotions and rewards. The company currently owns and operates
    156 retail food stores and a chain of 31 SuperPetz, LLC pet
    supply stores.</font> <font size="3"
          face="Times New Roman">The company's operations are
          reported as a single reportable segment.</font></p>

    <p><font size="3">The percentage of net sales contributed by
    each class of similar products for each of the previous five
    fiscal years was:<br clear="left"></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="12%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Year</u></b></font></td>

            <td width="14%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Grocery</u></b></font></td>

            <td width="14%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Meat</u></b></font></td>

            <td width="14%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Produce</u></b></font></td>

            <td width="14%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Pharmacy</u></b></font></td>

            <td width="14%"
                align="center"
                valign="bottom"><font size="3"><b><u>Pet
                Supply</u></b></font></td>

            <td width="14%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Other</u></b></font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2006</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">53.52</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">15.99</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">14.99</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">10.22</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2.55</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2.73</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"><font size="3">2005</font></td>

            <td align="center"
                valign="bottom"><font size="3">53.93</font></td>

            <td align="center"
                valign="bottom"><font size="3">16.18</font></td>

            <td align="center"
                valign="bottom"><font size="3">14.79</font></td>

            <td align="center"
                valign="bottom"><font size="3">10.21</font></td>

            <td align="center"
                valign="bottom"><font size="3">2.70</font></td>

            <td align="center"
                valign="bottom"><font size="3">2.19</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2004</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">53.91</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">16.19</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">14.58</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">10.45</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2.98</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1.89</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"><font size="3">2003</font></td>

            <td align="center"
                valign="bottom"><font size="3">54.55</font></td>

            <td align="center"
                valign="bottom"><font size="3">15.70</font></td>

            <td align="center"
                valign="bottom"><font size="3">14.67</font></td>

            <td align="center"
                valign="bottom"><font size="3">10.28</font></td>

            <td align="center"
                valign="bottom"><font size="3">3.18</font></td>

            <td align="center"
                valign="bottom"><font size="3">1.62</font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2002</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">55.39</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">15.29</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">14.73</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;9.83</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">3.28</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1.48</font></td>
        </tr>
    </table>

    <p><font size="3">Retail food store locations by state and by
    trade name as of year-end are as follows:<br clear=
    "left"></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="16%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size="3"><b><u>Mr.
                Z's</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>King's</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Cressler's</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Scot's</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>State</u></b></font></td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Total</u></b></font></td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>Weis
                Markets</u></b></font></td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>Food
                Mart</u></b></font></td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Supermarkets</u></b></font></td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Marketplace</u></b></font></td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Lo-Cost</u></b></font></td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Save-A-Lot</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">126</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">99</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">16</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">3</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Maryland</font></td>

            <td align="center"
                valign="bottom"><font size="3">24</font></td>

            <td align="center"
                valign="bottom"><font size="3">24</font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">New
                Jersey</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">3</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">3</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">New York</font></td>

            <td align="center"
                valign="bottom"><font size="3">1</font></td>

            <td align="center"
                valign="bottom"><font size="3">1</font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">West
                Virginia</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>

            <td align="center"
                valign="bottom"><font size="3">156</font></td>

            <td align="center"
                valign="bottom"><font size="3">129</font></td>

            <td align="center"
                valign="bottom"><font size="3">16</font></td>

            <td align="center"
                valign="bottom"><font size="3">6</font></td>

            <td align="center"
                valign="bottom"><font size="3">1</font></td>

            <td align="center"
                valign="bottom"><font size="3">3</font></td>

            <td align="center"
                valign="bottom"><font size="3">1</font></td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b>Page 1 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b><a name="1">Item
    1.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business:
    (continued)</b><br clear="left"></font></p>

    <p><font size="3">All trade names, except Scot's Lo-Cost and
    Save-A-Lot, operate as conventional supermarkets. Scot's
    Lo-Cost operates under a warehouse format, while Save-A-Lot's
    format caters to the price motivated consumer. The retail food
    stores range in size from 8,000 to 66,000 square feet, with an
    average size of approximately 47,000 square feet. The following
    summarizes the number of stores by size categories as of
    year-end:</font></p>

    <table cellspacing="0"
           cellpadding="0">
        <tr>
            <td width="300"
                align="left"
                valign="top"><b><font size="3"><u>Square
                feet</u></font></b></td>

            <td width="107"
                align="left"
                valign="top"><font size="3"><b><u>Number of
                stores</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top"
                bgcolor="#EFEFEF"><font size="3">55,000 to
                66,000</font></td>

            <td align="center"
                valign="top"
                bgcolor="#EFEFEF"><font size="3">28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">45,000 to
                54,999</font></td>

            <td align="center"
                valign="top"><font size="3">75</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top"
                bgcolor="#EFEFEF"><font size="3">35,000 to
                44,999</font></td>

            <td align="center"
                valign="top"
                bgcolor="#EFEFEF"><font size="3">34</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">25,000 to
                34,999</font></td>

            <td align="center"
                valign="top"><font size="3">11</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top"
                bgcolor="#EFEFEF"><font size="3">Under
                25,000</font></td>

            <td align="center"
                valign="top"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;8</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>

            <td align="center"
                valign="top"><font size="3">156</font></td>
        </tr>
    </table>

    <p><font size="3">The following schedule shows the changes in
    the number of retail food stores, total square footage and
    store additions/remodels as of year-end:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="27%"
                height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                colspan="2"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2006</u></b></font></td>

            <td height="14"
                colspan="2"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2005</u></b></font></td>

            <td height="14"
                colspan="2"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2004</u></b></font></td>

            <td height="14"
                colspan="2"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2003</u></b></font></td>

            <td height="14"
                colspan="2"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2002</u></b></font></td>

            <td width="8%"
                height="14"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">Beginning store
                count</font></td>

            <td width="8%"
                height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">158</font></td>

            <td width="1%"
                height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td width="12%"
                height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">157</font></td>

            <td width="1%"
                height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td width="12%"
                height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">158</font></td>

            <td width="2%"
                height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td width="8%"
                height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">160</font></td>

            <td width="2%"
                height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td width="8%"
                height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">163</font></td>

            <td width="2%"
                height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="14"
                align="left"
                valign="bottom"><font size="2">New
                stores</font></td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">2</font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">1</font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">1</font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2">---&nbsp;&nbsp;&nbsp;</font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">1</font></td>

            <td height="14"
                align="right"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2">Relocations</font></td>

            <td height="13"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">1</font></td>

            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">1</font></td>

            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">2</font></td>

            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">1</font></td>

            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">3</font></td>

            <td height="13"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="14"
                align="left"
                valign="bottom"><font size="2">Closed
                stores</font></td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">(4</font></td>

            <td height="14"
                align="left"
                valign="bottom"><font size="2">)</font></td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2">---&nbsp;&nbsp;&nbsp;</font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">(2</font></td>

            <td height="14"
                align="left"
                valign="bottom"><font size="2">)</font></td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">(2</font></td>

            <td height="14"
                align="left"
                valign="bottom"><font size="2">)</font></td>

            <td height="14"
                align="right"
                valign="bottom"><font size="2">(2</font></td>

            <td height="14"
                align="left"
                valign="bottom"><font size="2">)</font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">Relocated
                stores</font></td>

            <td height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">(1</font></td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">)</font></td>

            <td height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">(1</font></td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">)</font></td>

            <td height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">(2</font></td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">)</font></td>

            <td height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">(1</font></td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">)</font></td>

            <td height="12"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">(3</font></td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">)</font></td>

            <td height="12"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="14"
                align="left"
                valign="bottom"><font size="2">Sold</font></td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;</u></font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;</u></font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;</u></font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;</u></font></td>

            <td height="14"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2</u></font></td>

            <td height="14"
                align="left"
                valign="bottom"><font size="2">)</font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">Ending store
                count</font></td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;&nbsp;156</u></font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;&nbsp;158</u></font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;&nbsp;157</u></font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;&nbsp;158</u></font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2"><u>&nbsp;&nbsp;&nbsp;&nbsp;160</u></font></td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="13"
                align="left"
                valign="bottom"><font size="2">Total square feet
                (000's), at year-end</font></td>

            <td height="13"
                align="right"
                valign="bottom"><font size="2">7,311</font></td>

            <td height="13"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"><font size="2">7,280</font></td>

            <td height="13"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"><font size="2">7,183</font></td>

            <td height="13"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"><font size="2">7,157</font></td>

            <td height="13"
                align="left"
                valign="bottom">&nbsp;</td>

            <td height="13"
                align="right"
                valign="bottom"><font size="2">7,154</font></td>

            <td height="13"
                align="right"
                valign="bottom">&nbsp;</td>

            <td height="13"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">Additions/major
                remodels</font></td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">5</font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">3</font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">2</font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">4</font></td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">5</font></td>

            <td height="14"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td height="14"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3">The company supports the retail operations
    through a centrally located distribution facility, its own
    transportation fleet and four manufacturing
    facilities.&nbsp;&nbsp;The company is required to use a
    significant amount of working capital to provide for the
    necessary amount of inventory to meet demand for its products
    through efficient use of buying power and effective utilization
    of space in the warehouse facilities. The manufacturing
    facilities consist of a meat processing plant, an ice cream
    plant, an ice plant and a milk processing plant.</font></p>

    <p><font size="3">At year-end, SuperPetz, LLC operated 2 stores
    in Alabama, 1 store in Georgia, 1 store in Indiana, 1 store in
    Maryland, 2 stores in Michigan, 6 stores in Ohio, 1 store in
    North Carolina, 8 stores in Pennsylvania, 5 stores in South
    Carolina and 4 stores in Tennessee.</font></p>

    <p><font size="3">The business of the company is highly
    competitive. The number of competitors and the variety of
    competition experienced by the company's stores vary by market
    area. National, regional and local food chains, as well as
    independent food stores comprise the company's principal
    competition, although the company also faces substantial
    competition from convenience stores, membership warehouse
    clubs, specialty retailers, supercenters and large-scale drug
    and pharmaceutical chains. The company competes based on price,
    quality, location and service.</font></p>

    <p><font size="3">The company currently has approximately
    18,000 full-time and part-time associates.</font></p>

    <p align="center"><font size="3"><b>Page 2 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b><a name="2">Item
    1.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business:
    (continued)</b><br clear="left"></font></p>

    <p><font size="3"
          face="Times New Roman">The company maintains a web site
          at <i><u>www.weismarkets.com.</u></i> The company makes
          available, free of charge, on the "Corporate Info"
          section of its web site, its annual reports on Form 10-K,
          quarterly reports on Form 10-Q, current reports on Form
          8-K and amendments to those reports filed or furnished
          pursuant to Section 13(a) or 15(d) of the Exchange Act,
          as soon as reasonably practicable after the company
          electronically files such material or furnishes it to the
          U.S. Securities and Exchange Commission
          ("SEC").</font></p>

    <p><font size="3"
          face="Times New Roman">Additionally, the company's annual
          reports and corporate governance materials, including
          governance guidelines; the charters of the Audit and
          Compensation Committees, as well as the Disclosure
          Committee Bylaws; and both the Code of Business Conduct
          and Ethics and the Code of Ethics for the CEO and CFO,
          may be found under the "Corporate Info" section of its
          web site. A copy of the foregoing corporate governance
          materials is available upon written request to the
          company's</font> <font size="3">principal executive
          offices</font><font size="3"
          face="Times New Roman">.</font></p>

    <p><font size="3"><b><a name="0011">Item 1a. &nbsp;Risk
    Factors:</a></b></font></p>

    <p><font size="3"
          face="Times New Roman">In addition to risks and
          uncertainties in the ordinary course of business common
          to all businesses, important factors are listed below
          specific to the company and its industry, which could
          materially impact its future performance.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Competition:</b> The retail
          food industry is intensely price competitive, and the
          competition the company encounters may have a negative
          impact on product retail prices. The financial results
          may be adversely impacted by a competitive environment
          that could cause the company to reduce retail prices
          without a reduction in its product cost to maintain
          market share; thus reducing sales and gross profit
          margins.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Trade Area:</b> The company's
          stores are concentrated in central and northeast
          Pennsylvania, central Maryland and suburban Baltimore
          regions. Changes in economic and social conditions in the
          company's operating regions, including the rate of
          inflation, population demographics and employment and job
          growth, affect customer shopping habits. These changes
          may negatively impact sales and earnings. In addition,
          employment conditions specifically may affect the
          company's ability to hire and train qualified associates.
          Business disruptions due to weather and catastrophic
          events historically have been few. The company's
          geographic regions could receive an extreme variance in
          the amount of annual snowfall that may materially affect
          sales and expense results.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Execution of Expansion
          Plans:</b></font> <font size="3"
          face="Times New Roman">In 2007, the company expects to
          invest $72.5 million for capital expenditures, which
          includes all store, distribution and manufacturing
          projects and equipment purchases. Over the next twelve
          months, the company is planning to build two superstores,
          including one replacement unit and will continue to
          invest in its existing store base with eight additions
          and nine remodels.</font> <font size="3"
          face="Times New Roman">Circumstances outside the
          company's control could negatively impact these
          anticipated capital investments. The company cannot
          determine with certainty whether its new stores will be
          successful. The failure to expand by successfully opening
          new stores as planned, or the failure of a significant
          number of these stores to perform as planned, could have
          a material adverse effect on the company's business and
          results of its operations.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Operating Costs:</b> Associate
          expenses attribute to the majority of its operating costs
          and therefore, the company's financial performance is
          greatly influenced by increasing wage and benefit costs,
          a competitive labor market and the risk of unionized
          labor disruptions of its non-union workforce. The
          company's profit is particularly sensitive to the cost of
          oil. Oil prices directly affect the company's product
          transportation costs, as well as its utility and
          petroleum-based supply costs. The company is extremely
          concerned about the continuing rise in interchange fees
          for accepting credit card payments at the point of
          sale.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Self-Insurance
          Exposure:</b></font> <font size="3"
          face="Times New Roman">The company is self-insured for a
          majority of its workers' compensation, general liability,
          vehicle accident and associate medical benefit claims.
          The company is liable for associate health claims up to a
          lifetime aggregate of $1,000,000 per member and for
          workers' compensation claims up to $2,000,000 per claim.
          Property and casualty insurance coverage is maintained
          with outside carriers at deductible or retention levels
          ranging from $250,000 to $2,000,000.</font> <font size=
          "3"
          face="Times New Roman">Although the company has minimized
          its exposure on individual claims, the company, for the
          benefit of cost savings, has accepted the risk of an
          unusual amount of independent multiple material claims
          arising and having a significant impact on
          earnings.</font></p>

    <p><font size="3"><b>Taxes:</b></font> <font size="3"
          face="Times New Roman">The company's future effective tax
          rate may increase from current rates due to changes in
          laws and the status of pending items with various taxing
          authorities.</font></p>

    <p align="center"><font size="3"><b>Page 3 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b><a name="0012">Item 1b. &nbsp;Unresolved
    Staff Comments:</a></b></font></p>

    <p><font size="3">There are no unresolved staff
    comments.</font></p>

    <p><font size="3"><b><a name="002">Item 2. &nbsp;
    &nbsp;Properties:</a></b></font></p>

    <p><font size="3">The company currently owns and operates 84 of
    its retail food stores, and leases and operates 72 stores under
    operating leases that expire at various dates through 2026.
    SuperPetz leases all 31 of its retail store locations. The
    company owns all trade</font> <font size="3"
          face="Times New Roman">fixtures and equipment in its
          stores and several parcels of vacant land, which are
          available as locations for possible future stores or
          other expansion.</font></p>

    <p><font size="3"
          face="Times New Roman">The company owns and operates one
          distribution center in Milton, Pennsylvania of
          approximately 1,110,000 square feet, and one in
          Northumberland, Pennsylvania totaling approximately
          76,000 square feet. The company also owns one warehouse
          complex in Sunbury, Pennsylvania totaling approximately
          564,000 square feet. The company operates an ice cream
          plant, meat processing plant, ice plant and milk
          processing plant in 274,000 square feet at its Sunbury
          location.</font></p>

    <p><font size="3"
          face="Times New Roman"><b><a name="003">Item
          3.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
          Proceedings:</b></font></p>

    <p><font size="3"
          face="Times New Roman">Neither the company nor any
          subsidiary is presently a party to, nor is any of their
          property subject to, any pending legal proceedings, other
          than routine litigation incidental to the
          business.<br clear="left"></font></p>

    <p><font size="3"
          face="Times New Roman"><b><a name="004">Item
          4.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submission of
          Matters to a Vote of Security Holders:</b></font></p>

    <p><font size="3"
          face="Times New Roman">There were no matters submitted to
          a vote of security holders during the fourth quarter of
          2006.</font></p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Page 4 of 31 (Form
          10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"
                    face="Times New Roman"><b>WEIS MARKETS,
                    INC.</b></font>
        </center>
    </div>

    <p align="center"><font size="3"
          face="Times New Roman"><b><a name="02">PART
          II</a></b></font></p>

    <p><font size="3"
          face="Times New Roman"><b><a name="005">Item
          5.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market for
          Registrant's Common Equity, Related Stockholder Matters
          and Issuer Purchases of Equity Securities:</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company's stock is traded on
          the New York Stock Exchange (ticker symbol WMK). The
          approximate number of shareholders, including individual
          participants in security position listings, on December
          30, 2006 as provided by the company's transfer agent was
          8,623. High and low stock prices and dividends paid per
          share for the last two fiscal years were:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="22%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>2006</u></b></font></td>

            <td colspan="3"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>2005</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Stock
                  Price</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Dividend</u></b></font></td>

            <td colspan="2"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Stock
                  Price</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Dividend</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Quarter</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>High</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Low</u></b></font></td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Per
                  Share</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>High</u></b></font></td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Low</u></b></font></td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Per
                  Share</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">First</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$46.25</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$40.75</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$.29</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$39.15</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$36.12</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$.28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Second</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">44.79</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">37.75</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">.29</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">38.95</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">36.34</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">.28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Third</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">41.49</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">37.97</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">.29</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">41.68</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">37.14</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">.28</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Fourth</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">41.50</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">38.88</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">.29</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">44.15</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">36.80</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">.28</font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman"><b><a name="006">Item
          6.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected
          Financial Data:</b></font></p>

    <p><font size="3"
          face="Times New Roman">The following selected historical
          financial information has been derived from the company's
          audited consolidated financial statements. This
          information should be read in connection with the
          company's Consolidated Financial Statements and the Notes
          thereto, as well as "Management's Discussion and Analysis
          of Financial Condition and Results of Operations,"
          included in Item 7.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Five Year Review of
          Operations</b></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="34%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks</u></b></font></td>

            <td width="2%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>53
                  Weeks</u></b></font></td>

            <td width="2%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks</u></b></font></td>

            <td width="2%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks</u></b></font></td>

            <td width="2%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks</u></b></font></td>
        </tr>

        <tr>
            <td rowspan="2"
                align="left"
                valign="bottom"><font size="2"
                  face="Times New Roman"><i>(dollars in thousands,
                  except shares, per share amounts and store
                  information)</i></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Ended</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Ended</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Ended</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Ended</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Ended</u></b></font></td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Dec. 30,
                  2006</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Dec. 31,
                  2005</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Dec. 25,
                  2004</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Dec. 27,
                  2003</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Dec. 28,
                  2002</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Net sales</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">2,244,512</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">2,222,598</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">2,097,712</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">2,042,499</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">1,999,364</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Costs and
                  expenses</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;2,162,908</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;2,126,373</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;2,011,331</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;1,955,119</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;1,905,163</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Income from
                  operations</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">81,604</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">96,225</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">86,381</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">87,380</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">94,201</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Investment
                  income</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  &nbsp;&nbsp;&nbsp;4,484</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  &nbsp;3,081</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  &nbsp;1,222</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  &nbsp;&nbsp;&nbsp;824</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  &nbsp;485</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Income before provision
                  for income taxes</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">86,088</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">99,306</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">87,603</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">88,204</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">94,686</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Provision for income
                  taxes</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,078</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,885</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,412</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33,628</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,537</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Net income</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">56,010</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">63,421</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">57,191</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">54,576</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">59,149</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Retained earnings,
                  beginning of year</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;735,865</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;702,714</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;702,961</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;678,294</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;648,522</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">791,875</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">766,135</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">760,152</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">732,870</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">707,671</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Cash dividends</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,344</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,270</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,438</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,909</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,377</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Retained earnings, end of
                  year</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;760,531</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;735,865</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;702,714</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;702,961</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;678,294</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Weighted-average shares
                  outstanding, diluted</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;27,027,198</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;27,033,789</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;27,098,276</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;27,186,277</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;27,202,435</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Cash dividends per
                  share</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.08</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Basic and diluted earnings
                  per share</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.07</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Working
                  capital</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;147,451</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170,100</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,440</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;167,154</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;119,370</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Total assets</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">814,062</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">784,128</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">745,479</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">740,920</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">716,699</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Shareholders'
                  equity</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">629,163</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">603,857</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">571,700</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">575,448</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">552,432</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Number of grocery
                  stores</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">156</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">158</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">157</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">158</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">160</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Number of pet supply
                  stores</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">31</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">32</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">33</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">33</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">33</font></td>
        </tr>
    </table>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Page 5 of 31 (Form
          10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"
                    face="Times New Roman"><b>WEIS MARKETS,
                    INC.</b></font>
        </center>
    </div>

    <p><font size="3"
          face="Times New Roman"><b><a name="007">Item
          7.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management's
          Discussion and Analysis of Financial Condition and
          Results of Operations:</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>Company Overview</b></font></p>

    <p><font size="3"
          face="Times New Roman">Weis Markets, Inc. was founded in
          1912 by Sigmund and Harry Weis in Sunbury, Pennsylvania.
          Today, the company ranks among the top 50 food and drug
          retailers in the United States in revenues generated. At
          the end of 2006, the company operated 156 retail food
          stores in Pennsylvania and four surrounding states:
          Maryland, New Jersey, West Virginia and New York. In
          addition to its retail food stores, the company operates
          31 SuperPetz pet supply stores in ten states: Alabama,
          Georgia, Indiana, Maryland, Michigan, North Carolina,
          Ohio, Pennsylvania, South Carolina and
          Tennessee.</font></p>

    <p><font size="3"
          face="Times New Roman">Company revenues, income and cash
          flows are generated in its retail food stores from the
          sale of a wide variety of consumer products including
          groceries, dairy products, frozen foods, meats, seafood,
          fresh produce, floral, prescriptions, deli/bakery
          products, prepared foods, fuel, general merchandise,
          health and beauty care and household products. The
          company supports its retail operations through a
          centrally located distribution facility, transportation
          fleet, four manufacturing facilities and its
          administrative offices. The company's operations are
          reported as a single reportable segment.</font></p>

    <p><font size="3"
          face="Times New Roman">The following analysis should be
          read in conjunction with Financial Statements included in
          the 2006 Quarterly Reports on Form 10-Q and the 2005
          Annual Report on Form 10-K filed with the U.S. Securities
          and Exchange Commission, as well as the cautionary
          statement captioned "Forward-Looking Statements"
          immediately following this analysis.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Results of
          Operations</b></font></p>

    <p><font size="3"
          face="Times New Roman">Total company sales for the
          52-week year ending December 30, 2006 of $2.245 billion,
          increased $21.9 million or 1.0% compared to sales of
          $2.223 billion generated in fiscal 2005, a 53-week year.
          The company generated record sales in 2006, despite
          having one less week compared to 2005. Adjusting for the
          extra week in 2005, sales increased 2.8% and comparable
          store sales increased 2.0%. Adjusting for the extra week
          in 2005, sales increased 4.1% compared to 2004 and
          comparable store sales increased 4.0%.</font></p>

    <p><font size="3"
          face="Times New Roman">When calculating the percentage
          change in comparable store sales, the company defines a
          new store to be comparable the week following one full
          year of operation. Relocated stores and stores with
          expanded square footage are included in comparable sales
          since these units are located in existing markets and are
          open during construction. When a store is closed, sales
          generated from that unit in the prior year are subtracted
          from total company sales starting the same week of
          closure in the prior year and continuing from that point
          forward.</font></p>

    <p><font size="3"
          face="Times New Roman">The sales increases in the years
          presented were driven by growth in store square footage,
          customer count, sales per customer transaction and
          inflation. The favorable sales results were heavily
          impacted by the continuing strong performance of the
          store perishable departments in all three years. Early in
          2006, the company launched its Where Freshness Matters
          campaign, highlighting the quality and value of its
          perishable products, resulting in strong customer
          acceptance and sales growth. Subsequently, the company
          launched its Weis Steakhouse Angus program, resulting in
          a 23% sales increase in the beef category. The company's
          overall strategy will continue to emphasize freshness,
          service and value.</font></p>

    <p><font size="3"
          face="Times New Roman">Although the company experienced
          some product cost inflation for all three years
          presented, management does not feel it can accurately
          measure the full impact of product inflation and
          deflation on retail pricing due to changes in the types
          of merchandise sold between periods, shifts in customer
          buying patterns and the fluctuation of competitive
          factors.</font></p>

    <p><font size="3"
          face="Times New Roman">Cost of sales consists of direct
          product costs (net of discounts and allowances),
          warehouse costs, transportation costs and manufacturing
          facility costs. In recent years, many vendors have
          converted promotional incentives to reimbursements based
          upon sales movement data recorded at the point of sale
          rather than for cases purchased. Management expects this
          trend to have no discernible impact on the company's
          overall gross profit results.</font></p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Page 6 of 31 (Form
          10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"
                    face="Times New Roman"><b>WEIS MARKETS,
                    INC.</b></font>
        </center>
    </div>

    <p><font size="3"
          face="Times New Roman"><b><a name="10">Item
          7.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management's
          Discussion and Analysis of Financial Condition and
          Results of Operations: (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>Results of Operations
          (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman">Gross profit dollars generated
          from sales increased $9.6 million in 2006, or 1.6%, to
          $597.3 million compared to 2005, which increased $36.8
          million compared to 2004. Gross profit as a percentage of
          sales remained consistent at 26.6%, 26.4% and 26.3% in
          2006, 2005 and 2004, respectively. A $3.1 million
          improvement in store inventory losses ("shrink") in 2006
          compared to 2005, accounted for the majority of the
          increase in the gross profit rate.</font></p>

    <p><font size="3"
          face="Times New Roman">The company continues to implement
          operational initiatives for shrink reduction in its
          retail units. The first phase of a new exception
          reporting and performance management application was
          completed in 2006. When the second phase of this project
          is completed in 2007, store management will have full
          access to this rules-based exception-monitoring tool
          which is expected to further improve shrink control and
          gross profit results. As a result of higher fuel prices,
          the company's diesel fuel costs increased 16.0% compared
          to 2005. At this time, management is unaware of any other
          events or trends that may cause a material change to its
          overall financial operation due to fluctuations in
          product costs.</font></p>

    <p><font size="3"
          face="Times New Roman">Operating, general and
          administrative expenses in 2006 increased $24.2 million
          to $515.7 million or as a percentage of sales, increased
          to 23.0% compared to 22.1% in both 2005 and 2004.
          Employee-related costs such as wages, employer paid
          taxes, health care benefits and retirement plans,
          comprise over 60% of the total operating, general and
          administrative expenses. Employee-related costs increased
          3.0% in 2006 compared to 2005. Adjusting for the
          additional week in 2005, the company experienced a 4.8%
          increase in employee-related costs, which were
          significantly affected by additional staffing
          requirements for fourteen remodels including five
          expansions, two new stores and one replacement unit. A
          significant spike in energy prices had a major impact on
          the company's heating and cooling costs, increasing 7.3%.
          The cost of petroleum-based store supplies (such as
          plastic shopping bags) also increased an estimated 15%
          compared to last year. Interchange fees for accepting
          credit/debit cards increased 11.4%. The company remains
          extremely concerned about the continuing rise in
          interchange fees for accepting credit/debit card
          transactions. Consequently, the company is working with a
          wide variety of corporations and associations to reduce
          interchange rates, through legislative and regulatory
          initiatives. The company increased its advertising
          programs by $1.5 million. It also expensed an additional
          $1.1 million in depreciation due to its accelerated
          capital expenditure spending. In addition, the company
          incurred a pre-tax impairment loss of $1.7 million on two
          closed store facilities and expensed $417,000 for the
          environmental remediation on a non-store property.
          Earnings were further impacted by a $1.4 million
          adjustment to liabilities for future expenses on closed
          stores.</font></p>

    <p><font size="3"
          face="Times New Roman">In 2006, the company's investment
          income increased $1.4 million or 45.5%, to $4.5 million.
          The company realized a long-term gain of $431,000 on the
          sale of equities from its investment portfolio in 2006,
          compared to a gain of $422,000 in the previous year. The
          company benefited from rising interest rates on its
          investments in money market funds and by shifting a
          significant portion of its portfolio to higher yielding,
          tax-free municipal bonds during the year. In 2005, the
          company's investment income of $3.1 million increased
          $1.9 million, or 152.1%, compared to 2004.</font></p>

    <p><font size="3"
          face="Times New Roman">The company's combined federal and
          state effective tax rate was 34.9% in 2006, 36.1% in 2005
          and 34.7% in 2004. The effective income tax rate differs
          from the federal statutory rate of 35% primarily due to
          the effect of state taxes, net of permanent differences
          relating to tax-free income.</font></p>

    <p><font size="3"
          face="Times New Roman">Net income in 2006 was $56.0
          million or 2.5% of sales compared to $63.4 million or
          2.9% of sales in 2005 and $57.2 million or 2.7% of sales
          in 2004. Basic and diluted earnings per share of $2.07 in
          2006 compared to $2.35 in 2005 and $2.11 in
          2004.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Liquidity and Capital
          Resources</b></font></p>

    <p><font size="3"
          face="Times New Roman">Net cash provided by operating
          activities was $99.3 million in 2006 compared with $104.3
          million in 2005 and $118.2 million in 2004. Working
          capital decreased 13.3% in 2006, increased 18.6% in 2005,
          and decreased 14.2% in 2004. The considerable decline in
          working capital in 2006 was primarily due to the
          company's increased investment in property and equipment.
          A special one dollar per share dividend paid to
          shareholders in September of 2004 reduced working capital
          from the prior year.</font></p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Page 7 of 31 (Form
          10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"
                    face="Times New Roman"><b>WEIS MARKETS,
                    INC.</b></font>
        </center>
    </div>

    <p><font size="3"
          face="Times New Roman"><b><a name="11">Item
          7.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management's
          Discussion and Analysis of Financial Condition and
          Results of Operations: (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>Liquidity and Capital Resources
          (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman">Net cash used in investing
          activities was $108.5 million in 2006 compared to $62.4
          million in 2005, and $72.1 million in 2004. These funds
          were used primarily for the purchases of new securities
          and property and equipment. Property and equipment
          purchases during 2006 totaled $100.0 million compared to
          $55.5 million in 2005 and $82.8 million in 2004. As a
          percentage of sales, capital expenditures were 4.5%, 2.5%
          and 3.9% in 2006, 2005 and 2004, respectively.</font></p>

    <p><font size="3"
          face="Times New Roman">The company's capital expansion
          program includes the construction of new superstores, the
          expansion and remodeling of existing units, the
          acquisition of sites for future expansion, new technology
          purchases and the continued upgrade of the company's
          processing and distribution facilities. Company
          management estimates that its current development plans
          will require an investment of approximately $72.5 million
          in 2007.</font></p>

    <p><font size="3"
          face="Times New Roman">Net cash used in financing
          activities during 2006 was $32.5 million compared to
          $30.8 million in 2005 and $61.3 million in 2004. At
          December 30, 2006, the company had outstanding letters of
          credit of $26.3 million.</font></p>

    <p><font size="3"
          face="Times New Roman">Total cash dividend payments on
          common stock, on a per share basis, amounted to $1.16 in
          2006 compared to $1.12 in 2005 and $2.12 in 2004. On
          September 3, 2004, the company paid a special one dollar
          per share dividend totaling $27.1 million to its
          shareholders. Treasury stock purchases amounted to $1.4
          million in 2006, compared to $715,000 in 2005 and $4.0
          million in 2004. The Board of Directors 2004 resolution
          authorizing the repurchase of up to one million shares of
          the company's common stock has a remaining balance of
          858,292 shares.</font></p>

    <p><font size="3"
          face="Times New Roman">The company has no other
          commitment of capital resources as of December 30, 2006,
          other than the lease commitments on its store facilities
          under operating leases that expire at various dates
          through 2026. The company anticipates funding its working
          capital requirements and its $72.5 million capital
          expansion program through internally generated cash flows
          from operations.</font></p>

    <p><font size="3"
          face="Times New Roman">The company's earnings and cash
          flows are subject to fluctuations due to changes in
          interest rates as they relate to available-for-sale
          securities and any future long-term debt borrowings. The
          company's marketable securities currently consist of
          Pennsylvania tax-free state and municipal bonds, equity
          securities and other short-term investments. Other
          short-term investments are classified as cash equivalents
          on the Consolidated Balance Sheets.</font></p>

    <p><font size="3"
          face="Times New Roman">By their nature, these financial
          instruments inherently expose the holders to market risk.
          The extent of the company's interest rate and other
          market risk is not quantifiable or predictable with
          precision due to the variability of future interest rates
          and other changes in market conditions. However, the
          company believes that its exposure in this area is not
          material.</font></p>

    <p><font size="3"
          face="Times New Roman">Under its current policies, the
          company invests primarily in high-grade marketable
          securities and does not use interest rate derivative
          instruments to manage exposure to interest rate
          fluctuations. Historically, the company's principal
          investment strategy of obtaining marketable securities
          with maturity dates between one and five years helps to
          minimize market risk and to maintain a balance between
          risk and return. The equity securities owned by the
          company consist primarily of stock held in large
          capitalized companies trading on public security exchange
          markets. The company's management continually monitors
          the risk associated with its marketable securities. A
          quantitative tabular presentation of risk exposure is
          located in Item 7a.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Contractual
          Obligations</b></font></p>

    <p><font size="3"
          face="Times New Roman">The following table represents
          scheduled maturities of the company's long-term
          contractual obligations as of December 30,
          2006.</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="35%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="3%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="9"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Payments due by
                  period</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="3%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>Less
                  than</u></b></font></td>

            <td width="3%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="3%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="3%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="13%"
                align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>More
                  than</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"
                  face="Times New Roman"><i>(dollars in
                  thousands)</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Total</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>1
                  year</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>1-3
                  years</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>3-5
                  years</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b><u>5
                  years</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Operating
                  leases</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman"><u>243,335</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;28,551</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;54,666</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;40,662</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman"><u>119,456</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Total</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman"><u>243,335</u></font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;28,551</u></font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;54,666</u></font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;40,662</u></font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman">$</font></td>

            <td align="right"
                valign="bottom"><font size="3"
                  face="Times New Roman"><u>119,456</u></font></td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Page 8 of 31 (Form
          10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5><!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><font size="3"><a href="#000"></a><a href="#000">Table of
    Contents</a></font></p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>WEIS MARKETS,
          INC.</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b><a name="9">Item
          7.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management's
          Discussion and Analysis of Financial Condition and
          Results of Operations: (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>Critical Accounting
          Estimates</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company has chosen accounting
          policies that it believes are appropriate to accurately
          and fairly report its operating results and financial
          position, and the company applies those accounting
          policies in a consistent manner. The Significant
          Accounting Policies are summarized in Note 1 to the
          Consolidated Financial Statements.</font></p>

    <p><font size="3"
          face="Times New Roman">The preparation of financial
          statements in conformity with accounting principles
          generally accepted in the United States of America
          requires that the company makes estimates and assumptions
          that affect the reported amounts of assets, liabilities,
          revenues and expenses. These estimates and assumptions
          are based on historical and other factors believed to be
          reasonable under the circumstances. The company evaluates
          these estimates and assumptions on an ongoing basis and
          may retain outside consultants, lawyers and actuaries to
          assist in its evaluation. The company believes the
          following accounting policies are the most critical
          because they involve the most significant judgments and
          estimates used in preparation of its consolidated
          financial statements.</font></p>

    <p><b><font size="3"><b>Vendor Allowances</b></font></b></p>

    <p><font size="3"
          face="Times New Roman">Vendor allowances that relate to
          the company's buying and merchandising activities are
          recorded as a reduction of cost of sales as they are
          earned, in accordance with its underlying agreement.
          Off-invoice and bill-back allowances are used to reduce
          direct product costs upon the receipt of goods.
          Promotional rebates and credits are accounted for as a
          reduction in the cost of inventory and recognized when
          the related inventory is sold. Volume incentive discounts
          are realized as a reduction of cost of sales at the time
          it is deemed probable and reasonably estimable that the
          incentive target will be reached. Long-term contract
          incentives, which require an exclusive vendor
          relationship, are allocated over the life of the
          contract. Promotional allowance funds for specific
          vendor-sponsored programs are recognized as a reduction
          of cost of sales as the program occurs and the funds are
          earned per the agreement. Cash discounts for prompt
          payment of invoices are realized in cost of sales as
          invoices are paid. Warehouse and back-haul allowances
          provided by suppliers for distributing their product
          through our distribution system are recorded in cost of
          sales as the required performance is completed. Warehouse
          rack and slotting allowances are recorded in cost of
          sales when new items are initially set up in the
          company's distribution system, which is when the related
          expenses are incurred and performance under the agreement
          is complete. Swell allowances for damaged goods are
          realized in cost of sales as provided by the supplier,
          helping to offset product shrink losses also recorded in
          cost of sales.</font></p>

    <p><b><font size="3"><b>Store Closing Costs</b></font></b></p>

    <p><font size="3"
          face="Times New Roman">The company provides for closed
          store liabilities relating to the estimated post-closing
          lease liabilities and related other exit costs associated
          with the store closing commitments. The closed store
          liabilities are usually paid over the lease terms
          associated with the closed stores having remaining terms
          ranging from one to five years. At December 30, 2006,
          closed store lease liabilities totaled $1.9 million. The
          company estimates the lease liabilities, net of estimated
          sublease income, using the undiscounted rent payments of
          closed stores. Other exit costs include estimated real
          estate taxes, common area maintenance, insurance and
          utility costs to be incurred after the store closes over
          the remaining lease term. Store closings are generally
          completed within one year after the decision to close.
          Adjustments to closed store liabilities and other exit
          costs primarily relate to changes in subtenants and
          actual exit costs differing from original estimates.
          Adjustments are made for changes in estimates in the
          period in which changes become known. Any excess store
          closing liability remaining upon settlement of the
          obligation is reversed to income in the period that such
          settlement is determined. Inventory write-downs, if any,
          in connection with store closings, are classified in cost
          of sales. Costs to transfer inventory and equipment from
          closed stores are expensed as incurred. Store closing
          liabilities are reviewed quarterly to ensure that any
          accrued amount that is no longer needed for its
          originally intended purpose is reversed to income in the
          proper period.</font></p>

    <p><b><font size="3"><b>Self-Insurance</b></font></b></p>

    <p><font size="3"
          face="Times New Roman">The company is self-insured for a
          majority of its workers' compensation, general liability,
          vehicle accident and associate medical benefit claims.
          The self-insurance liability for most of the workers'
          compensation claims is determined based on historical
          data and an estimate of claims incurred but not reported.
          The other self-insurance liabilities are determined
          actuarially, based on claims filed and an estimate of
          claims incurred but not yet reported. The company is
          liable for associate health claims up to a lifetime
          aggregate of $1,000,000 per member and for workers
          compensation claims up to $2,000,000 per claim. Property
          and casualty insurance coverage is maintained with
          outside carriers at deductible or retention levels
          ranging from $250,000 to $2,000,000. Significant
          assumptions used in the development of the actuarial
          estimates include reliance on the company's historical
          claims data including average monthly claims and average
          lag time between incurrence and reporting of the
          claim.</font></p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Page 9 of 31 (Form
          10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><font size="3"><a href="#000"></a><a href="#000">Table of
    Contents</a></font></p>

    <p align="center"><font size="3"
          face="Times New Roman"><b>WEIS MARKETS,
          INC.</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b><a name="12">Item
          7.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management's
          Discussion and Analysis of Financial Condition and
          Results of Operations: (continued)</b></font></p>

    <p><font size="3"><b>Forward-Looking Statements</b></font></p>

    <p><font size="3"
          face="Times New Roman">In addition to historical
          information, this Annual Report may contain
          forward-looking statements. Any forward-looking
          statements contained herein are subject to certain risks
          and uncertainties that could cause actual results to
          differ materially from those projected. For example,
          risks and uncertainties can arise with changes in:
          general economic conditions, including their impact on
          capital expenditures; business conditions in the retail
          industry; the regulatory environment; rapidly changing
          technology and competitive factors, including increased
          competition with regional and national retailers; and
          price pressures. Readers are cautioned not to place undue
          reliance on forward-looking statements, which reflect
          management's analysis only as of the date hereof. The
          company undertakes no obligation to publicly revise or
          update these forward-looking statements to reflect events
          or circumstances that arise after the date hereof.
          Readers should carefully review the risk factors
          described in other documents the company files
          periodically with the Securities and Exchange
          Commission.</font></p>

    <p><font size="3"><b>Certifications</b></font></p>

    <p><font size="3"
          face="Times New Roman">As required under Section
          303A.12(a) of the New York Stock Exchange Listed Company
          Manual, the company submitted a Chief Executive Officer
          Certification to the New York Stock Exchange with no
          qualifications on May 1, 2006. The company filed with the
          Securities and Exchange Commission the Chief Executive
          Officer and Chief Financial Officer certifications as
          required under Section 302 of the Sarbanes-Oxley Act in
          the prior years as an Exhibit to Form 10-K.</font></p>

    <p><font size="3"><b><a name="0071">Item
    7a.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantitative and
    Qualitative Disclosures about Market Risk:</b></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="24%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="13"
                align="center"
                valign="bottom"><font size="2"><b><u>Expected
                Maturity Dates</u></b></font></td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size="2"><b><u>Fair
                Value</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>December 30,
                2006</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td width="6%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2007</u></b></font></td>

            <td width="1%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="6%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2008</u></b></font></td>

            <td width="1%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="6%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2009</u></b></font></td>

            <td width="1%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="6%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2010</u></b></font></td>

            <td width="1%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>2011</u></b></font></td>

            <td width="1%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>Thereafter</u></b></font></td>

            <td width="1%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "2"><b><u>Total</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="2"><b><u>Dec. 30,
                2006</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">Rate sensitive
                assets:</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "2">&nbsp;&nbsp;&nbsp;Fixed interest rate
                securities</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">13,690</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">1,200</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">2,020</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">6,135</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">2,040</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size=
                "2">---&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">25,085</font></td>

            <td align="right"
                valign="bottom"><font size="2">$</font></td>

            <td align="right"
                valign="bottom"><font size="2">25,764</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2">&nbsp;&nbsp;&nbsp;Average interest
                rate</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">3.76</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">%</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">2.97</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">%</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">3.16</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">%</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">3.48</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">%</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">4.11</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">%</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "2">---&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">3.63</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2">%</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"><b>Other Relevant Market
        Risks</b><br clear="left"></font><font size="3"
          face="Times New Roman">The company's equity securities at
          December 30, 2006 had a cost basis of $1,935,000 and a
          fair value of $12,398,000. The dividend yield realized on
          these equity investments was 6.27% in 2006. Market risk,
          as it relates to equities owned by the company, is
          discussed within the "Liquidity and Capital Resources"
          section of "Management's Discussion and Analysis of
          Financial Condition and Results of Operations" contained
          within this report.</font></p>

    <p align="center"><font size="3"><b>Page 10 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b><a name="008"></a></b></font></p>

    <p><font size="3"><b>Item
    8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and
    Supplementary Data:</b></font></p>

    <table cellspacing="0"
           cellpadding="0">
        <tr>
            <td width="734"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b>WEIS MARKETS,
                INC.</b></font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b>CONSOLIDATED
                BALANCE SHEETS</b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>(dollars in
                thousands)</i></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"
                  face="Times New Roman"><i>December 30, 2006 and
                  December 31, 2005</i></font></td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="66%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="1%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="7%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="1%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="3%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><b><u>Assets</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">Current:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;Cash</font> <font size="3"
                  face="Times New Roman">and cash
                  equivalents</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">27,545</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">69,300</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;Marketable securities</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">38,163</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">23,210</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;Accounts receivable,
                net</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">41,885</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">38,376</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;Inventories</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">189,468</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">179,382</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;Prepaid expenses</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,932</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,076</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
            Total current assets</b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;300,993</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;316,344</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Property and
                equipment, net</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">492,543</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">446,517</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">Goodwill</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">15,722</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">15,731</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Intangible</font>
                  <font size="3">and other assets, net</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,804</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,536</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
            Total assets</b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;814,062</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;784,128</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><b><u>Liabilities</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">Current:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;Accounts payable</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">105,859</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">100,895</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;Accrued expenses</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">22,307</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">20,079</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;Accrued self-insurance</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">22,778</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">21,553</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;Payable to employee benefit
                plans</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,435</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,427</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;&nbsp;Income
                taxes payable</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  865</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,020</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;Deferred income taxes</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                  298</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;270</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
                current liabilities</b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;153,542</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;146,244</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Postretirement benefit
                  obligations</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,912</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,060</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Deferred income
                taxes</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,445</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face=
                  "Times New Roman"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,967</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
                liabilities</b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;184,899</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;180,271</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><b><u>Shareholders' Equity</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Common stock, no
                par value,</font> <font size="3">100,800,000 shares
                authorized,</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33,009,046 and
                33,002,357 shares issued, respectively</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">8,595</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">8,371</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Retained
                earnings</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">760,531</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">735,865</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Accumulated other
                comprehensive income, net</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,084</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,296</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">775,210</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">748,532</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Treasury stock at
                cost, 6,016,291 and 5,982,461 shares,
                respectively</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;(146,047</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;(144,675</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
            &nbsp;Total shareholders' equity</b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;629,163</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;603,857</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
                liabilities and shareholders'
                equity</b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;814,062</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;784,128</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><i>See
                accompanying notes to consolidated financial
                statements.</i></font></td>

            <td>&nbsp;</td>

            <td>&nbsp;</td>

            <td>&nbsp;</td>

            <td>&nbsp;</td>

            <td>&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b>Page 11 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <table cellspacing="0"
           cellpadding="0">
        <tr>
            <td width="720"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b><a name=
                "0081">WEIS MARKETS, INC.</a></b></font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b>CONSOLIDATED
                STATEMENTS OF INCOME</b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"
                  face="Times New Roman"><i>(dollars in thousands,
                  except shares and per share
                  amounts)</i></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>For the Fiscal
                Years Ended December 30, 2006,</i></font></td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="55%"
                align="left"
                valign="bottom"><font size="2"><i>December 31, 2005
                and December 25, 2004</i></font></td>

            <td width="8%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="4%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="4%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                  "3">(</font><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks)</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                  "3">(</font><font size="3"
                  face="Times New Roman"><b><u>53
                  Weeks)</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                  "3">(</font><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks)</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Net
                sales</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,244,512</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,222,598</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,097,712</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Cost of sales,
                including warehousing and distribution
                expenses</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;1,647,233</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;1,634,874</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;1,546,783</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;Gross profit on
                sales</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">597,279</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">587,724</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">550,929</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Operating, general
                and administrative expenses</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;515,675</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;491,499</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;464,548</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;Income from
                operations</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">81,604</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">96,225</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">86,381</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Investment
                income</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                4,484</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;3,081</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;1,222</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;Income before provision
                for income taxes</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">86,088</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">99,306</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">87,603</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Provision for
                income taxes</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,078</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,885</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,412</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56,010</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63,421</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,191</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Weighted-average
                shares outstanding, basic</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">27,016,877</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">27,026,748</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">27,098,000</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Weighted-average
                shares outstanding, diluted</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">27,027,198</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">27,033,789</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">27,098,276</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Cash dividends per
                share</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Basic and diluted
                earnings per share</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.07</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11</font></td>
        </tr>

        <tr>
            <td colspan="7"
                align="left"
                valign="bottom"><font size="3"><i>See accompanying
                notes to consolidated financial
                statements.</i></font></td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b>Page 12 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <table cellspacing="0"
           cellpadding="0">
        <tr>
            <td width="720"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b><a name=
                "0082">WEIS MARKETS, INC.</a></b></font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman"><b>CONSOLIDATED STATEMENTS
                  OF SHAREHOLDERS' EQUITY</b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>(dollars in
                thousands, except shares)</i></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>For the Fiscal
                Years Ended December 30, 2006,</i></font></td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td colspan="2"
                align="left"
                valign="bottom"><font size="2"><i>December 31, 2005
                and December 25, 2004</i></font></td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="1%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="1%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="center"
                valign="bottom"><font size="2"
                  face=
                  "Times New Roman"><b><u>Accumulated</u></b></font></td>

            <td width="9%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td width="24%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="right"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="center"
                valign="bottom"><font size="2"
                  face=
                  "Times New Roman"><b><u>Other</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Total</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Common</u></b></font>
                  <font size="3"><b><u>Stock</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Retained</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="center"
                valign="bottom"><font size="2"
                  face=
                  "Times New Roman"><b><u>Comprehensive</u></b></font></td>

            <td colspan="3"
                align="center"
                valign="bottom"><font size="3"><b><u>Treasury
                Stock</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Shareholders'</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Shares</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Amount</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"
                  face=
                  "Times New Roman"><b><u>Earnings</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td colspan="2"
                align="center"
                valign="bottom"><font size="2"
                  face=
                  "Times New Roman"><b><u>Income</u></b></font></td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Shares</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Amount</u></b></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Equity</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman"><b>Balance at December 27,
                  2003</b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">32,989,507</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size=
                "3">$</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">7,971</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size=
                "3">$</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">702,961</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size=
                "3">$</font></font></td>

            <td width="10%"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">4,428</font></td>

            <td width="1%"
                align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">5,849,589</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size=
                "3">$</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(139,912</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size=
                "3">)</font> <font size="3"
                  face="Times New Roman">$</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">575,448</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Net
                  income</font></font></td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">57,191</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">57,191</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Other comprehensive
                  income, net of reclassification adjustments and
                  tax</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">319</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;319</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;Comprehensive
                  income</font></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,510</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Shares issued for
                  options</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">7,650</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">228</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">228</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Treasury stock
                  purchased</font></font></td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">114,741</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">(4,048</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"><font size="3">(4,048</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Dividends
                  paid</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;(57,438</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(57,438</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b>Balance at December 25,
                  2004</b></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;32,997,157</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;8,199</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;702,714</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,747</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;5,964,330</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;(143,960</font></td>

            <td align="left"
                valign="bottom"><font size="2"><font size=
                "3">)</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;571,700</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Net
                  income</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">63,421</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">63,421</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Other comprehensive loss,
                  net of reclassification adjustments and
                  tax</font></font></td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">(451</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(451</u></font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;Comprehensive
                  income</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,970</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Shares issued for
                  options</font></font></td>

            <td align="right"
                valign="bottom"><font size="3">5,200</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">172</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">172</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Treasury stock
                  purchased</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">18,131</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(715</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(715</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Dividends
                  paid</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;(30,270</u></font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30,270</u></font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman"><b>Balance at December 31,
                  2005</b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;33,002,357</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,371</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;735,865</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,296</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;5,982,461</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;(144,675</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;603,857</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Net
                  income</font></font></td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;56,010</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">56,010</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Other comprehensive
                  income, net of reclassification adjustments and
                  tax</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,788</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,788</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face=
                  "Times New Roman">&nbsp;&nbsp;&nbsp;Comprehensive
                  income</font></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,798</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Shares issued for
                  options</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6,689</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">224</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;3,498</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(154</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">70</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">Treasury stock
                  purchased</font></font></td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">30,332</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">(1,218</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"><font size="3">(1,218</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="2"><font size="3"
                  face="Times New Roman">Dividends
                  paid</font></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;(31,344</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><u>&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31,344</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman"><b>Balance at December 30,
                  2006</b></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;33,009,046</u></font></td>

            <td align="right"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">$</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,595</u></font></td>

            <td align="right"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">$</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;760,531</u></font></td>

            <td align="right"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">$</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,084</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;6,016,291</u></font></td>

            <td align="right"
                valign="bottom"><font size="2"><font size="3"
                  face="Times New Roman">$</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;(146,047</u></font></td>

            <td align="right"
                valign="bottom"><font size="2"><font size=
                "3">)</font> <font size="3"
                  face="Times New Roman">$</font></font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;629,163</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="15"
                align="left"
                valign="bottom"><font size="3"><i>See accompanying
                notes to consolidated financial
                statements.</i></font></td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b>Page 13 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><font size="3"><a href="#000">Table of
    Contents</a><b><br clear="left"></b></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="100%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b><a name=
                "0083">WEIS MARKETS, INC.</a></b></font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman"><b>CONSOLIDATED STATEMENTS
                  OF CASH FLOWS</b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>(dollars in
                thousands)</i></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>For the Fiscal
                Years Ended December 30, 2006,</i></font></td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="55%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>December 31,
                2005 and December 25, 2004</i></font></td>

            <td width="3%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="4%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="4%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                  "3">(</font><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks)</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                  "3">(</font><font size="3"
                  face="Times New Roman"><b><u>53
                  Weeks)</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                  "3">(</font><font size="3"
                  face="Times New Roman"><b><u>52
                  Weeks)</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"><b>Cash flows from
                operating activities:</b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;Net
                income</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">56,010</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">63,421</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">57,191</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;Adjustments
                to reconcile net income to</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net cash
                provided by operating activities:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Depreciation</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">45,000</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">43,875</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">40,614</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Amortization</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6,020</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6,231</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">5,721</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Loss on impairment /
                disposition of fixed assets</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">974</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">519</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,438</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Gain on sale of marketable
                securities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(431</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(422</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(52</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Changes in operating assets
                and liabilities:</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(10,086</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(14,338</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">8,508</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
                receivable and prepaid expenses</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(1,365</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(3,424</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(2,930</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
                taxes recoverable</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,729</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(1,729</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable
                and other liabilities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">10,277</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">7,636</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">4,648</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
                taxes payable</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(1,155</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2,020</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(1,955</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income
                taxes</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(5,762</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(2,845</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">6,786</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(201</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(98</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;&nbsp;Net
                cash provided by operating activities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;99,281</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104,304</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;118,246</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b>Cash flows from
                investing activities:</b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;Purchase of
                property and equipment</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(99,975</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(55,468</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(82,766</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;Proceeds
                from the sale of property and equipment</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">2,696</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">291</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">9,086</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;Purchase of
                marketable securities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(33,020</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(8,248</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">(24,850</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;Proceeds
                from maturities of marketable
                securities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">15,745</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">---&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">26,350</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;Proceeds
                from sale of marketable securities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,010</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;Net cash
                used in investing activities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><u>&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;(108,544</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><u>&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(62,425</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><u>&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(72,094</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><b>Cash flows from
                financing activities:</b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;Proceeds
                from issuance of common stock</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">224</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">172</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">228</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;Dividends
                paid</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">(31,344</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">(30,270</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">(57,438</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">&nbsp;Purchase of
                treasury stock</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,372</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(715</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(4,048</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">&nbsp;&nbsp;Net
                cash used in financing activities</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32,492</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30,813</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61,258</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Net (decrease)
                increase in cash and</font> <font size="3"
                  face="Times New Roman">cash
                  equivalents</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">(41,755</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">11,066</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">(15,106</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Cash and</font>
                <font size="3"
                  face="Times New Roman">cash equivalents</font>
                  <font size="3">at beginning of year</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69,300</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58,234</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73,340</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Cash and</font>
                <font size="3"
                  face="Times New Roman">cash equivalents</font>
                  <font size="3">at end of year</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,545</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69,300</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58,234</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="100%"
                align="left"
                valign="top"
                bgcolor="#FFFFFF"><font size="3"><i>See
                accompanying notes to consolidated financial
                statements.</i></font></td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b>Page 14 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b><a name="0084">WEIS MARKETS,
            INC.</a></b></font>
        </center>
    </div>

    <p align="center"><font size="3"><b>Notes to Consolidated
    Financial Statements</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>Note 1 Summary of Significant
          Accounting Policies</b></font></p>

    <p><font size="3"
          face="Times New Roman">The following is a summary of the
          significant accounting policies utilized in preparing the
          company's consolidated financial statements:</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(a) Description of
          Business</b></font></p>

    <p><font size="3"
          face="Times New Roman">Weis Markets, Inc. is a
          Pennsylvania business corporation formed in 1924. The
          company is engaged principally in the retail sale of food
          in Pennsylvania and surrounding states. There was no
          material change in the nature of the company's business
          during fiscal 2006.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(b) Definition of Fiscal
          Year</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company's fiscal year ends on
          the last Saturday in December. Fiscal 2006, 2005 and 2004
          were comprised of 52 weeks, 53 weeks and 52 weeks,
          respectively.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(c) Principles of
          Consolidation</b></font></p>

    <p><font size="3"
          face="Times New Roman">The consolidated financial
          statements include the accounts of the company and its
          subsidiaries. All significant intercompany accounts and
          transactions have been eliminated in
          consolidation.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(d) Use of
          Estimates</b></font></p>

    <p><font size="3"
          face="Times New Roman">Management of the company has made
          a number of estimates and assumptions relating to the
          reporting of assets and liabilities and the disclosure of
          contingent assets and liabilities to prepare these
          consolidated financial statements in conformity with
          accounting principles generally accepted in the United
          States of America. Actual results could differ from those
          estimates.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(e)
          Reclassifications</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company reclassified "Other
          income" as originally reported for the fiscal years ended
          December 31, 2005 and December 25, 2004 in the amount of
          $16.3 million and $13.8 million, respectively. Prior to
          the reclassification, "Other income" included net rental
          income, coupon-handling fees, store service commissions,
          cardboard salvage, gain or loss on the disposition of
          fixed assets and interest expense. The majority of items
          were reclassified as reductions of "Operating, general
          and administrative expenses." Items which related to
          distribution were reclassified as "Cost of sales,
          including warehousing and distribution expenses." An
          immaterial amount of interest expense was netted with
          "Investment income."</font></p>

    <p><font size="3"
          face="Times New Roman">The following table summarizes the
          changes to originally reported amounts and subtotals in
          the 2005 and 2004 Consolidated Statements of
          Income:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="52%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>As</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>As</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Originally</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>As</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Originally</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>As</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Reported</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Reclassified</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Reported</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Reclassified</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3"><i>(</i></font><font size="2"><i>dollars in
                thousands)</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Net sales (not
                  reclassified, for presentation only)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,222,598</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,222,598</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,097,712</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">2,097,712</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Cost of sales, including
                  warehousing and distribution expenses</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;1,636,137</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;1,634,874</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;1,548,210</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;1,546,783</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Gross profit on
                  sales</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">586,461</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">587,724</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">549,502</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">550,929</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Operating, general and
                  administrative expenses</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;506,900</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;491,499</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;477,317</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;464,548</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Income from
                  operations</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">79,561</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">96,225</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">72,185</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">86,381</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Investment
                  income</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">3,408</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">3,081</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,617</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,222</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Other income,
                  net</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,337</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13,801</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Income before provision
                  for income taxes (not reclassified, for
                  presentation only)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,306</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,306</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,603</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,603</u></font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The company reclassified
          liabilities related to certain retirement plans and
          related deferred income tax assets as of December 31,
          2005. The retirement plans were originally reported as
          "Payable to employee benefit plans," a current liability,
          rather than "Postretirement benefit obligations," a
          long-term liability. The effect of this reclassification
          changed amounts originally reported on the 2005
          Consolidated Balance Sheet.</font></p>

    <p align="center"><font size="3"><b>Page 15 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 1 Summary of Significant Accounting
    Policies (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>(e) Reclassifications</b>
          <b>(continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman">The following table summarizes the
          changes to originally reported amounts in the 2005
          Consolidated Balance Sheet:</font></p>

    <table bgcolor="#FFFFFF"
           cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="75%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>As</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>Originally</u></b></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>As</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>Reported</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>Reclassified</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2005</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Deferred income taxes
                  (current asset)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">4,359</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Payable to employee
                  benefit plans</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">12,487</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,427</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Deferred income taxes
                  (current liability)</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">270</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Postretirement benefit
                  obligations</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">11,060</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Deferred income taxes
                  (long-term liability)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,596</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,967</font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman"><b>(f) Cash and Cash Equivalents
          &nbsp;</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company considers investments
          with an original maturity of three months or less to be
          cash equivalents. Investment amounts classified as cash
          equivalents as of December 30, 2006 and December 31, 2005
          totaled $23.5 million and $64.7 million,
          respectively.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(g) Marketable
          Securities</b></font></p>

    <p><font size="3"
          face="Times New Roman">Marketable securities consist of
          Pennsylvania tax-free state and municipal bonds and
          equity securities. By policy, the company invests
          primarily in high-grade marketable securities. The
          company classifies all of its marketable securities as
          available-for-sale.</font></p>

    <p><font size="3"
          face="Times New Roman">Available-for-sale securities are
          recorded at fair value as determined by quoted market
          price based on national markets. Unrealized holding gains
          and losses, net of the related tax effect, are excluded
          from earnings and are reported as a separate component of
          shareholders' equity until realized. A decline in the
          fair value below cost that is deemed other than temporary
          results in a charge to earnings and the establishment of
          a new cost basis for the security. Dividend and interest
          income is recognized when earned. Realized gains and
          losses are included in earnings and are derived using the
          specific identification method for determining the cost
          of securities.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(h) Accounts
          Receivable</b></font></p>

    <p><font size="3"
          face="Times New Roman">Accounts receivable are stated net
          of an allowance for uncollectible accounts of $1.1
          million and $1.2 million as of December 30, 2006 and
          December 31, 2005, respectively. The reserve balance
          relates to amounts due from pharmacy third party
          providers and customer returned checks. The company
          maintains an allowance for the amount of receivables
          deemed to be uncollectible and calculates this amount
          based upon historical collection activity adjusted for
          current conditions. Customer electronic payments accepted
          at the point of sale are classified as accounts
          receivable until collected.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(i) Inventories</b></font></p>

    <p><font size="3"
          face="Times New Roman">Inventories are valued at the
          lower of cost or market, using both the last-in,
          first-out (LIFO) and average cost methods. The company
          evaluates inventory shortages throughout the year based
          on actual physical counts in its facilities. Allowances
          for inventory shortages are recorded based on the results
          of these counts and to provide for estimated shortages
          from the last physical count to the financial statement
          date. See additional disclosures regarding inventories in
          Note 3.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(j) Property and
          Equipment</b></font></p>

    <p><font size="3"
          face="Times New Roman">Property and equipment are
          recorded at cost. Depreciation is provided on the cost of
          buildings and improvements and equipment principally
          using accelerated methods. Leasehold improvements are
          amortized using the straight line method over the terms
          of the leases or the useful lives of the assets,
          whichever is shorter.</font></p>

    <p><font size="3"
          face="Times New Roman">Maintenance and repairs are
          expensed and renewals and betterments are capitalized.
          When assets are retired or otherwise disposed of, the
          assets and accumulated depreciation are removed from the
          respective accounts and any profit or loss on the
          disposition is credited or charged to "Operating, general
          and administrative expenses."</font></p>

    <p align="center"><font size="3"><b>Page 16 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 1 Summary of Significant Accounting
    Policies (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>(k) Goodwill and Intangible
          Assets</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company follows Financial
          Accounting Standards Board ("FASB") Statement of
          Financial Accounting Standards No. 142, "Goodwill and
          Other Intangible Assets" ("SFAS 142"), which establishes
          that intangible assets with an indefinite useful life
          shall not be amortized until their useful life is
          determined to be no longer indefinite and should be
          tested for impairment annually or more frequently if
          events or changes in circumstances indicate that the
          asset might be impaired. SFAS 142 states that goodwill
          should not be amortized but tested for impairment for
          each reporting unit, on an annual basis and between
          annual tests in certain circumstances. Intangible assets
          with a definite useful life are generally amortized over
          periods ranging from 15 to 20 years. As of December 30,
          2006, the company has no intangible assets, other than
          goodwill, with indefinite lives.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(l) Impairment of Long-Lived
          Assets</b></font></p>

    <p><font size="3"
          face="Times New Roman">In accordance with FASB Statement
          of Financial Accounting Standards No. 144, "Accounting
          for the Impairment or Disposal of Long-Lived Assets"
          ("SFAS 144"), the company periodically evaluates the
          period of depreciation or amortization for long-lived
          assets to determine whether current circumstances warrant
          revised estimates of useful lives. The company reviews
          its property and equipment for impairment whenever events
          or changes in circumstances indicate the carrying value
          of an asset may not be recoverable. Recoverability is
          measured by a comparison of the carrying amount to the
          net undiscounted cash flows expected to be generated by
          the asset. An impairment loss would be recorded for the
          excess of net book value over the fair value of the asset
          impaired. The fair value is estimated based on expected
          discounted future cash flows.</font></p>

    <p><font size="3"
          face="Times New Roman">With respect to owned property and
          equipment associated with closed stores, the value of the
          property and equipment is adjusted to reflect recoverable
          values based on the company's prior history of disposing
          of similar assets and current economic
          conditions.</font></p>

    <p><font size="3"
          face="Times New Roman">The results of impairment tests
          are subject to management's estimates and assumptions of
          projected cash flows and operating results. The company
          believes that, based on current conditions, materially
          different reported results are not likely to result from
          long-lived asset impairments. However, a change in
          assumptions or market conditions could result in a change
          in estimated future cash flows and the likelihood of
          materially different reported results.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(m) Store Closing
          Costs</b></font></p>

    <p><font size="3"
          face="Times New Roman">In accordance with FASB Statement
          of Financial Accounting Standards No. 146, "Accounting
          for Costs Associated with Exit or Disposal Activities"
          ("SFAS 146"), the company provides for closed store
          liabilities relating to the estimated post-closing lease
          liabilities and related other exit costs associated with
          the store closing commitments. The closed store
          liabilities are usually paid over the lease terms
          associated with the closed stores having remaining terms
          ranging from one to five years. At December 30, 2006,
          closed store lease liabilities totaled $1.9 million. The
          company estimates the lease liabilities, net of estimated
          sublease income, using the undiscounted rent payments of
          closed stores.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(n)
          Self-Insurance</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company is self-insured for a
          majority of its workers' compensation, general liability,
          vehicle accident and associate medical benefit claims.
          Self-insurance costs are accrued based upon the aggregate
          of the liability for reported claims and an estimated
          liability for claims incurred but not reported. The
          company is liable for associate health claims up to a
          lifetime aggregate of $1,000,000 per member and for
          workers' compensation claims up to $2,000,000 per claim.
          Property and casualty insurance coverage is maintained
          with outside carriers at deductible or retention levels
          ranging from $250,000 to $2,000,000.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(o) Stock Option
          Plan</b></font></p>

    <p><font size="3"
          face="Times New Roman">As of December 31, 2004, no awards
          may be granted under the company's 1995 Stock Option
          Plan. The last options granted under the Plan in 2002
          will expire in 2012. The proforma impact of adopting FASB
          Statement of Financial Accounting Standards No. 123,
          "Accounting for Stock-Based Compensation" ("SFAS 123") as
          amended by FASB Statement of Financial Accounting
          Standards No. 148, "Accounting for Stock-Based
          Compensation - Transition and Disclosure," is immaterial.
          See additional disclosures regarding remaining
          outstanding options in Note 7.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(p) Income Taxes</b></font></p>

    <p><font size="3"
          face="Times New Roman">Under the asset and liability
          method of FASB Statement of Financial Accounting
          Standards No. 109, "Accounting for Income Taxes" ("SFAS
          109"), deferred tax assets and liabilities are recognized
          for the future tax consequences attributable to
          differences between the financial statement carrying
          amounts of existing assets and liabilities and their
          respective tax bases. Deferred tax assets and liabilities
          are measured using enacted tax rates expected to apply to
          taxable income in the years in which those temporary
          differences are expected to be recovered or
          settled.</font></p>

    <p align="center"><font size="3"><b>Page 17 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 1 Summary of Significant Accounting
    Policies (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>(q) Earnings Per
          Share</b></font></p>

    <p><font size="3"
          face="Times New Roman">Earnings per share are based on
          the weighted-average number of common shares outstanding.
          Diluted earnings per share are based on the
          weighted-average number of common shares outstanding,
          plus the incremental shares that would have been
          outstanding upon the assumed exercise of all dilutive
          stock options, subject to antidilution limitations. Basic
          and diluted earnings per share are the same amounts for
          each period presented. For 2004, options to purchase
          32,850 shares at an exercise price of $37.94, were not
          included in the computation of diluted earnings per share
          because their inclusion under the treasury stock method
          would have been antidilutive.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(r) Revenue
          Recognition</b></font></p>

    <p><font size="3"
          face="Times New Roman">Revenue from the sale of products
          to the company's customers is recognized at the point of
          sale. Discounts provided to customers at the point of
          sale through the Weis Club Preferred Shopper loyalty
          program are recognized as a reduction in sales as
          products are sold. Periodically, the company will run a
          point based sales incentive program that rewards
          customers with future sales discounts. The company makes
          reasonable and reliable estimates of the amount of future
          discounts based upon historical experience and its
          customer data tracking software. Sales are reduced by
          these estimates over the life of the program. Discounts
          to customers at the point of sale provided by vendors,
          usually in the form of paper coupons, are not recognized
          as a reduction in sales provided the discounts are
          redeemable at any retailer that accepts those discounts.
          The company does not recognize revenue when it sells gift
          cards, but rather revenue is recognized at the time of
          customer redemption for products.</font> <font size="3"
          face="Times New Roman">Return activity is immaterial to
          revenues.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(s) Cost of Sales, Including
          Warehousing and Distribution Expenses</b></font></p>

    <p><font size="3"
          face="Times New Roman">"Cost of sales, including
          warehousing and distribution expenses" consists of direct
          product costs (net of discounts and allowances),
          warehouse costs, transportation costs and manufacturing
          facility costs.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(t) Vendor
          Allowances</b></font></p>

    <p><font size="3"
          face="Times New Roman">Vendor allowances that relate to
          the company's buying and merchandising activities are
          recorded as a reduction of cost of sales as they are
          earned, in accordance with its underlying agreement.
          Off-invoice and bill-back allowances are used to reduce
          direct product costs upon the receipt of goods.
          Promotional rebates and credits are accounted for as a
          reduction in the cost of inventory and recognized when
          the related inventory is sold. Volume incentive discounts
          are realized as a reduction of cost of sales at the time
          it is deemed probable and reasonably estimable that the
          incentive target will be reached. Long-term contract
          incentives, which require an exclusive vendor
          relationship, are allocated over the life of the
          contract. Promotional allowance funds for specific
          vendor-sponsored programs are recognized as a reduction
          of cost of sales as the program occurs and the funds are
          earned per the agreement. Cash discounts for prompt
          payment of invoices are realized in cost of sales as
          invoices are paid. Warehouse and back-haul allowances
          provided by suppliers for distributing their product
          through our distribution system are recorded in cost of
          sales as the required performance is completed. Warehouse
          rack and slotting allowances are recorded in cost of
          sales when new items are initially set up in the
          company's distribution system, which is when the related
          expenses are incurred and performance under the agreement
          is complete. Swell allowances for damaged goods are
          realized in cost of sales as provided by the supplier,
          helping to offset product shrink losses also recorded in
          cost of sales.</font></p>

    <p><font size="3"
          face="Times New Roman">Vendor allowances recorded as
          credits in cost of sales totaled $42.6 million in 2006,
          $40.7 million in 2005, and $42.9 million in 2004. Vendor
          paid cooperative advertising credits totaled $16.5
          million in 2006, $16.8 million in 2005, and $17.5 million
          in 2004. These credits were netted against advertising
          costs within "Operating, general and administrative
          expenses." The company had accounts receivable due from
          vendors of $600,000 and $800,000 for earned advertising
          credits and $7.2 million and $3.9 million for earned
          promotional discounts as of December 30, 2006 and
          December 31, 2005, respectively. The company had $1.5
          million and $1.8 million in unearned revenue included in
          accrued liabilities for unearned vendor programs under
          long-term contracts for display and shelf space
          allocation as of December 30, 2006 and December 31, 2005,
          respectively.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(u) Operating, General and
          Administrative Expenses</b></font></p>

    <p><font size="3"
          face="Times New Roman">Business operating costs including
          expenses generated from administration and purchasing
          functions, are recorded in "Operating, general and
          administrative expenses" in the Consolidated Statements
          of Income. Business operating costs include items such as
          wages, benefits, utilities, repairs and maintenance,
          advertising costs and credits, rent, insurance, equipment
          depreciation, leasehold amortization and costs for
          outside provided services.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(v) Advertising
          Costs</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company expenses advertising
          costs as incurred. The company recorded advertising
          expense, before vendor paid cooperative advertising
          credits, of $26.1 million in 2006, $24.6 million in 2005,
          and $23.9 million in 2004 in "Operating, general and
          administrative expenses."</font></p>

    <p align="center"><font size="3"><b>Page 18 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 1 Summary of Significant Accounting
    Policies (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>(w) Rental
          Income</b></font></p>

    <p><font size="3"
          face="Times New Roman">The company leases or subleases
          space to tenants in owned, vacated and open store
          facilities. Rental income is recorded when earned as a
          component of "Operating, general and administrative
          expenses." All leases are operating leases, as disclosed
          in Note 5, and do not contain up front
          considerations.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>(x) Current Relevant Accounting
          Standards</b></font></p>

    <p><font size="3"
          face="Times New Roman">In October 2005, the FASB issued
          FASB Staff Position FAS 13-1, "Accounting for Rental
          Costs Incurred during a Construction Period" ("FSP FAS
          13-1"). FSP FAS 13-1 requires rental costs associated
          with operating leases incurred during a construction
          period to be recognized as rental expense effective for
          the first reporting period after December 15, 2005. In
          addition, FSP FAS 13-1 requires lessees to cease
          capitalizing rental costs for operating lease agreements
          entered into prior to the effective date. Early adoption
          is permitted. Retrospective application of FSP FAS 13-1
          is permitted but not required. Management changed its
          accounting policy to recognize rental expense during
          construction as of the beginning of this fiscal year. The
          company did not previously capitalize rental costs for
          operating lease agreements. The adoption of FSP FAS 13-1
          did not have a material effect on the company's
          consolidated financial statements.</font></p>

    <p><font size="3"
          face="Times New Roman">In June 2006, the FASB ratified
          the consensus reached by the Emerging Issues Tax Force in
          Issue No. 06-3, "How Taxes Collected from Customers and
          Remitted to Governmental Authorities Should Be Presented
          in the Income Statement (That is, Gross versus Net
          Presentation)" ("EITF 06-3"). The scope of EITF 06-3
          includes any tax assessed by a governmental authority
          that is directly imposed on a revenue-producing activity
          between a seller and a customer and may include, but is
          not limited to, sales, use, value added, and some excise
          taxes. EITF 06-3 also concluded that the presentation of
          taxes within its scope on either a gross (included in
          revenues and costs) or net (excluded from revenues) basis
          is an accounting policy decision subject to appropriate
          disclosure. EITF 06-3 is effective for periods beginning
          after December 15, 2006. The company will continue to use
          the net basis for presentation.</font></p>

    <p><font size="3"
          face="Times New Roman">In June 2006, the FASB issued FASB
          Interpretation No. 48, "Accounting for Uncertainty in
          Income Taxes: an Interpretation of FASB Statement No.
          109" ("FIN 48"). FIN 48, which clarifies SFAS 109,
          establishes the criterion that an individual tax position
          has to meet for some or all of the benefits of that
          position to be recognized in the company's financial
          statements. On initial application, FIN 48 will be
          applied to all tax positions for which the statute of
          limitations remains open. Only tax positions that meet
          the more-likely-than-not recognition threshold at the
          adoption date will be recognized or continue to be
          recognized. The cumulative effect of applying FIN 48 will
          be reported as an adjustment to retained earnings at the
          beginning of the period in which it is adopted. FIN 48 is
          effective for fiscal years beginning after December 15,
          2006, and will be adopted by the company on December 31,
          2006. The company currently does not believe that the
          adoption of FIN 48 will have a significant effect on its
          financial statements.</font></p>

    <p><font size="3"
          face="Times New Roman">In September 2006, the FASB issued
          Statement of Financial Accounting Standards No. 158,
          "Employers' Accounting for Defined Benefit Pension and
          Other Postretirement Plans - an Amendment of FASB
          Statements No. 87, 88, 106 and 132(R)" ("SFAS 158"). SFAS
          158 requires balance sheet recognition of the overfunded
          or underfunded status of pension and postretirement
          benefit plans. Under SFAS 158, actuarial gains and
          losses, prior service costs or credits, and any remaining
          transition assets or obligations that have not been
          recognized under previous accounting standards must be
          recognized in Accumulated Other Non-Shareowners' Changes
          in Equity, net of tax effects, until they are amortized
          as a component of net periodic benefit cost. The adoption
          of SFAS 158 did not have a material effect on the
          company's consolidated financial statements.</font></p>

    <p><font size="3"
          face="Times New Roman">In September 2006, the Securities
          and Exchange Commission issued Staff Accounting Bulletin
          No. 108, "Considering the Effects of Prior Year
          Misstatements when Quantifying Misstatements in Current
          Year Financial Statements" ("SAB 108"). SAB 108 was
          issued to provide consistency in how registrants quantify
          financial statement misstatements.</font></p>

    <p><font size="3"
          face="Times New Roman">Historically, there have been two
          widely used methods for quantifying the effects of
          financial statement misstatements. These methods are
          referred to as the "roll-over" and "iron curtain" method.
          The roll-over method quantifies the amount by which the
          current year income statement is misstated. Exclusive
          reliance on an income statement approach can result in
          the accumulation of errors on the balance sheet that may
          not have been material to any individual income
          statement, but which may misstate one or more balance
          sheet accounts. The iron curtain method quantifies the
          error as the cumulative amount by which the current year
          balance sheet is misstated. Exclusive reliance on a
          balance sheet approach can result in disregarding the
          effects of errors in the current year income statement
          that results from the correction of an error existing in
          previously issued financial statements.</font></p>

    <p align="center"><font size="3"><b>Page 19 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 1 Summary of Significant Accounting
    Policies (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>(x) Current Relevant Accounting
          Standards</b></font><font size=
          "3"><b>(continued)</b></font></p>

    <p><font size="3">SAB 108 established an approach that requires
    quantification of financial statement misstatements based on
    the effects of the misstatement on each of the company's
    financial statements and the related financial statement
    disclosures. This approach is commonly referred to as the "dual
    approach" because it requires quantification of errors under
    both the roll-over and iron curtain methods.</font>
          <font size="3"
          face="Times New Roman">The company uses the dual approach
          method for quantifying identified financial statement
          misstatements.</font></p>

    <p><font size="3">SAB 108 allows registrants to initially apply
    the dual approach either by (1) retroactively adjusting prior
    financial statements as if the dual approach had always been
    used or by (2) recording the cumulative effect of initially
    applying the dual approach as adjustments to the carrying
    values of assets and liabilities as of January 1, 2006 with an
    offsetting adjustment recorded to the opening balance of
    retained earnings. Use of this "cumulative effect" transition
    method requires detailed disclosure of the nature and amount of
    each individual error being corrected through the cumulative
    adjustment and how and when it arose<i>.<br clear=
    "left"></i></font></p>

    <p><font size="3"
          face="Times New Roman">The company applied SAB 108 using
          the cumulative effect transition method in connection
          with the preparation of its consolidated financial
          statements for the year ending December 30, 2006. The
          adoption of SAB 108 did not result in any adjustments to
          the company's consolidated financial
          statements.</font></p>

    <p><font size="3"><b>Note 2 Marketable
        Securities</b><br clear="left">
    Marketable securities, as of December 30, 2006 and December 31,
    2005, consisted of:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="52%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Gross</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Gross</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Unrealized</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Unrealized</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Amortized</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Holding</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Holding</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Fair</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>December 30,
                2006</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Cost</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Gains</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Losses</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Value</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">Available-for-sale:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;Pennsylvania state and
                municipal bonds</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">25,830</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">14</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">79</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">25,765</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Equity securities</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,935</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,464</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,398</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,765</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,478</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,163</u></font></td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="52%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Gross</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Gross</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Unrealized</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Unrealized</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3"><i>(</i></font><font size="2"><i>dollars in
                thousands)</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Amortized</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Holding</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Holding</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Fair</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>December 31,
                2005</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Cost</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Gains</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Losses</u></b></font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Value</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">Available-for-sale:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;Pennsylvania state and
                municipal bonds</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">13,353</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size=
                "3">---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">42</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">13,311</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Equity securities</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,514</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,388</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,899</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,867</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,388</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,210</u></font></td>
        </tr>
    </table>

    <p><font size="3">Maturities of marketable securities
    classified as available-for-sale at December 30, 2006, were as
    follows:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="76%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Amortized</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Fair</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3"><i>(</i></font><font size="2"><i>dollars in
                thousands)</i></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Cost</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Value</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">Available-for-sale:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Due within one
                year</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">14,029</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">14,031</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Due within one year through
                five years</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">11,801</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">11,733</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Equity securities</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,935</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,399</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,765</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,163</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">See additional
                disclosures regarding marketable securities in
                Notes 1(g) and 11.</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <p align="center"><font size="3"><b>Page 20 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 3 Inventories</b><br clear="left">
    Merchandise inventories, as of December 30, 2006 and December
    31, 2005, were valued as follows:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="75%"
                align="left"
                valign="bottom"><font size=
                "3"><i>(</i></font><font size="2"><i>dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">LIFO</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">150,397</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">141,359</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Average
                cost</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39,071</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,023</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;189,468</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;179,382</u></font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">Management believes the use of the
          LIFO method for valuing certain inventories represents
          the most appropriate matching of costs and revenues in
          the company's circumstances. If all inventories were
          valued on the average cost method, which approximates
          current cost, total inventories would have been
          $47,314,000 and $43,134,000 higher than as reported on
          the above methods as of December 30, 2006 and December
          31, 2005, respectively. During 2005 and 2004, the company
          had certain decrements in its LIFO pools, which had an
          insignificant impact on the cost of sales.</font></p>

    <p><font size="3"><b>Note 4 Property and
        Equipment</b><br clear="left">
    Property and equipment, as of December 30, 2006 and December
    31, 2005, consisted of:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="64%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="3"><b><u>Useful
                Life</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>(in
                years)</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Land</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">84,094</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">68,181</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Buildings and
                improvements</font></td>

            <td align="center"
                valign="bottom"><font size="3">10-60</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">391,357</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">367,549</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">Equipment</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;3-12</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">585,213</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">555,377</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Leasehold
                improvements</font></td>

            <td align="center"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;5-20</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;121,263</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;110,739</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Total, at cost</font></td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">1,181,927</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">1,101,846</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Less accumulated
                depreciation and amortization</font></td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;689,384</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;655,329</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;492,543</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;446,517</u></font></td>
        </tr>
    </table>

    <p><font size="3"><b>Note 5 Lease Commitments</b><br clear=
    "left"></font><font size="3"
          face="Times New Roman">At December 30, 2006, the company
          leased approximately 55% of its open store facilities
          under operating leases that expire at various dates
          through 2026. These leases generally provide for fixed
          annual rentals; however, several provide for minimum
          annual rentals plus contingent rentals as a percentage of
          annual sales and a number of leases require the company
          to pay for all or a portion of insurance, real estate
          taxes, water and sewer rentals, and repairs, the cost of
          which is charged to the related expense category rather
          than being accounted for as rent expense. Most of the
          leases contain multiple renewal options, under which the
          company may extend the lease terms from 5 to 20 years.
          Rents on operating leases, including agreements with step
          rents, are charged to expense on a straight-line basis
          over the minimum lease term. The company does not have
          any leases that include capital improvement funding or
          other lease concessions.</font></p>

    <p><font size="3">Rent expense and income on all leases
    consisted of:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="63%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Minimum annual
                rentals</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">30,147</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">29,752</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">29,233</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Contingent
                rentals</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">333</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">303</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">266</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Lease or sublease
                income</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;(6,757</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;(7,820</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;(7,780</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;23,723</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;22,235</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;21,719</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <p align="center"><font size="3"><b>Page 21 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b><!---->
            WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 5 Lease Commitments
    (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman">The following is a schedule by
          years of future minimum rental payments required under
          operating leases and total minimum sublease and lease
          rental income to be received that have initial or
          remaining noncancelable lease terms in excess of one year
          as of December 30, 2006.</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="74%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b>Leases</b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b>Subleases</b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">
                <p align="left"><font size="3">2007</font></p>
            </td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">28,551</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(4,680</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom">
                <p align="left"><font size="3">2008</font></p>
            </td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">28,395</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">(4,247</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">
                <p align="left"><font size="3">2009</font></p>
            </td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">26,271</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(3,098</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">2010</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">22,272</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">(2,457</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2011</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">18,390</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(1,463</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">Thereafter</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;119,456</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(2,624</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;243,335</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;(18,569</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The company has $1,688,000 accrued
          as of December 30, 2006, for future minimum rental
          payments due on previously closed stores, reduced by the
          estimated sublease income to be received. The future
          minimum rental payments required under operating leases
          and estimated sublease income for these locations are
          included in the above schedule.</font></p>

    <p><font size="3"><b>Note 6 Retirement Plans</b><br clear=
    "left"></font><font size="3"
          face="Times New Roman">The company has a contributory
          retirement savings plan (401(k)) covering substantially
          all full-time associates, a noncontributory
          profit-sharing plan covering eligible associates, a
          noncontributory employee stock bonus plan covering
          eligible associates and three supplemental retirement
          plans covering highly compensated employees of the
          company. An eligible associate as defined in the Weis
          Markets, Inc. Profit Sharing Plan and the Weis Markets,
          Inc. Employee Stock Bonus Plan includes certain salaried
          associates, store management and administrative support
          personnel. The company's policy is to fund 401(k),
          profit-sharing and stock bonus costs as accrued, but not
          supplemental retirement costs. Contributions to the
          401(k) plan, the profit-sharing plan and the stock bonus
          plan are made at the sole discretion of the
          company.</font></p>

    <p><font size="3">Retirement plan costs:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="63%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Retirement savings
                plan</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,006</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">988</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">984</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Profit-sharing
                plan</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">900</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">896</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">855</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Employee stock
                bonus plan</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">40</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">40</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">40</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Deferred compensation
                  plan</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">500</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">516</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">452</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Supplemental
                retirement plan</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">965</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">777</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">572</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Pharmacist
                deferred compensation plan</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,457</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,225</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,903</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The Weis Markets, Inc. Employee
          Stock Bonus Plan was terminated as of December 31, 2006
          and all contributions under the Weis Markets, Inc.
          Employee Stock Bonus Plan ceased as of December 31,
          2006.</font></p>

    <p><font size="3"
          face="Times New Roman">The company maintains a
          non-qualified deferred compensation plan for the payment
          of specific amounts of annual retirement benefits to
          certain officers or their beneficiaries over an
          actuarially computed normal life expectancy. The benefits
          are determined through actuarial calculations dependent
          on the age of the recipient, using an assumed discount
          rate.</font> <font size="3"
          face="Times New Roman">The plan is unfunded and accounted
          for on an accrual basis. The projected benefit
          obligations are equal to the liability for pension
          benefits included in "Payable to employee benefit plans"
          and "Postretirement benefit obligations" in the
          Consolidated Balance Sheets</font><font size=
          "3">.</font></p>

    <p><font size="3">Change in the benefit obligations:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="74%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="8%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Benefit obligations at
                  beginning of year</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6,303</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6,019</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Interest cost</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">455</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">434</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Benefit
                  payments</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(232</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(232</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Actuarial gain</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82</u></font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,571</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,303</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="6"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face="Times New Roman">Weighted-average
                  assumptions used to determine benefit
                  obligations:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"
                  face=
                  "Times New Roman"><b><u>2006</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Discount rate</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">7.50%</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="center"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">7.50%</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>
    </table>

    <p align="center"><font size="3"><b>Page 22 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 6 Retirement Plans
    (continued)</b></font></p>

    <p><font size="3"
          face="Times New Roman">Components of net periodic benefit
          cost:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="67%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="6%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Interest cost</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">455</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">434</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">435</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3"
                  face="Times New Roman">Amount of recognized
                  gain</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">187</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">150</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">214</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">Estimated future benefit
          payments:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="75%"
                align="left"
                valign="bottom"><font size=
                "3"><i>(</i></font><font size="2"><i>dollars in
                thousands)</i></font></td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "3"><u>Benefits</u></font></td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">
                <p align="left"><font size="3">2007</font></p>
            </td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">232</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom">
                <p align="left"><font size="3">2008</font></p>
            </td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">1,107</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">
                <p align="left"><font size="3">2009</font></p>
            </td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,107</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">2010</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">1,107</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2011</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,107</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">2012 -
                2016</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">5,537</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The company also maintains a
          non-qualified supplemental executive retirement plan and
          a non-qualified pharmacist deferred compensation plan for
          certain of its associates. These plans are designed to
          provide retirement benefits and salary deferral
          opportunities because of limitations imposed by the
          Internal Revenue Code and the Regulations implemented by
          the Internal Revenue Service. These plans are unfunded
          and accounted for on an accrual basis. Participants in
          these plans are excluded from participation in the Profit
          Sharing and Employee Stock Bonus plans. The Board of
          Directors annually determines the amount of the
          allocation to the plans at its sole discretion. The
          allocation among the various plan participants is made in
          relationship to their compensation, years of service and
          job performance. Plan participants are 100% vested in
          their accounts after seven years of service with the
          company. Benefits are distributed among participants upon
          reaching the applicable retirement age. Substantial risk
          of benefit forfeiture does exist for participants in
          these plans. The present value of accumulated benefits
          amounted to $6,572,000 and $4,988,000 at December 30,
          2006 and December 31, 2005, respectively, and is included
          in "Postretirement benefit obligations" in the
          Consolidated Balance Sheets.</font></p>

    <p><font size="3">The company has no other postretirement
    benefit plans.</font></p>

    <p><font size="3"><b>Note 7</b></font> <font size="3"
          face="Times New Roman"><b>Stock</b></font> <font size=
          "3"><b>Option Plan<br clear="left"></b>The company has an
          incentive stock option plan for officers and other key
          associates. Under the terms of the plan, option exercise
          prices are 100% of the "fair market value" of the shares
          on the date granted. Options previously granted are
          immediately exercisable and expire ten years after date
          of grant.</font></p>

    <p><font size="3">Changes during the three years ended December
    30, 2006, in options outstanding under the plan were as
    follows:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="61%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="15%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Weighted-Average</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="15%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Shares</u></b></font></td>

            <td width="1%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>Exercise
                Price</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>Under
                Option</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Balance, December
                27, 2003</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$35.20</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;108,100</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">$29.84</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">(7,650</font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expired</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$26.50</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(700</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">$34.35</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,500</u></font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Balance, December
                25, 2004</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$35.69</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">98,250</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$33.11</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(5,200</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$35.97</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(900</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Balance, December
                31, 2005</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$35.83</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">92,150</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$33.53</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(6,689</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expired</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$31.50</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(700</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Balance, December
                30, 2006</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$36.04</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;84,761</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">Exercise prices for options
          outstanding as of December 30, 2006 ranged from $32.88 to
          $37.94. The weighted-average remaining contractual life
          of those options is three years. As of December 30, 2006,
          all options are exercisable.</font></p>

    <p align="center"><font size="3"><b>Page 23 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 8 Income Taxes</b><br clear="left">
    The provision (benefit) for income taxes consists
    of:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="61%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">Current:</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;Federal</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">33,168</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">34,991</font></td>

            <td align="right"
                valign="bottom"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"><font size="3">21,322</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;State</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2,672</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">3,739</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2,304</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">Deferred:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Federal</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(4,758</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(2,443</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">6,727</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size=
                "3">&nbsp;&nbsp;&nbsp;State</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,004</u></font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;(402</u></font></td>

            <td align="left"
                valign="bottom"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59</u></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,078</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,885</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,412</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The reconciliation of income taxes
          computed at the federal statutory rate (35% in 2006, 2005
          and 2004) to the provision for income taxes
          is:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="65%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="7%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Income taxes at
                federal statutory rate</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">30,131</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">34,757</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">30,661</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">State income taxes,
                net of federal income tax benefit</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">1,084</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">2,169</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">1,536</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Resolution and accrual of
                  audit contingencies</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(300</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(1,590</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Other</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3"><u>&nbsp;&nbsp;
                &nbsp;&nbsp;(1,137</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;(741</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;(195</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Provision for income taxes
                (effective tax rate 34.9%, 36.1% and 34.7%,
                respectively)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;30,078</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;35,885</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;30,412</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The company accrued for probable
          liabilities resulting from tax assessments by federal and
          state tax authorities in 2003. During 2003, the Internal
          Revenue Service completed its routine audit of the
          company's federal income tax returns for the years 1997
          through 2001. Resolution was completed with respect to
          the various tax issues in the examination in 2004 and
          adjustments were made to certain previously filed tax
          returns.</font></p>

    <p><font size="3"
          face="Times New Roman">Cash paid for income taxes was
          $36,844,000, $34,995,000 and $29,446,000 in 2006, 2005
          and 2004, respectively.</font></p>

    <p><font size="3"
          face="Times New Roman">The tax effects of temporary
          differences that give rise to deferred tax assets and
          deferred tax liabilities at December 30, 2006 and
          December 31, 2005, are:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="61%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="3%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="7%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="3%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td width="10%"
                align="center"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="3%"
                align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Deferred tax
                assets:</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Accounts
                receivable</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">185</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">221</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Compensated
                absences</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">484</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">487</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Employee benefit
                plans</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">7,136</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">6,731</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;General liability
                insurance</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,323</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,325</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Nondeductible accruals and
                other</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,860</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">1,899</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Postretirement benefit
                obligations</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,397</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,629</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
                deferred tax assets</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,385</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,292</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Deferred tax
                liabilities:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Inventories</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(6,971</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">(7,886</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Unrealized gain on marketable
                securities</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(4,315</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(3,047</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Depreciation</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23,842</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27,596</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
                deferred tax liabilities</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35,128</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38,529</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Net deferred tax
                liability</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18,743</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23,237</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Current deferred
                liability - net</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(298</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(270</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Noncurrent
                deferred liability - net</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18,445</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22,967</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Net deferred tax
                liability</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18,743</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23,237</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>
        </tr>
    </table>

    <p align="center"><font size="3"><b>Page 24 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b>Note 9 Comprehensive
        Income</b><br clear="left"></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="61%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2006</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2005</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="9%"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>2004</u></b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Net
                income</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">56,010</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">63,421</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">57,191</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Other comprehensive
                income by component, net of tax:</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Unrealized holding gains
                (losses) arising during period (Net of deferred
                taxes of &nbsp;$1,447, $144 and $248,
                respectively)</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">2,040</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">(204</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">350</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3">&nbsp;&nbsp;&nbsp;Reclassification adjustment
                for gains included in net income (Net of deferred
                taxes of $179, $175 and $22,
                respectively)</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(252</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(247</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">)</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Other
                comprehensive income, net of tax</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,788</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(451</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">)</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;319</u></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Comprehensive
                income, net of tax</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,798</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,970</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF"><font size=
                "3"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,510</u></font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3"><b>Note 10 Summary of Quarterly Results
    (Unaudited)</b><br clear="left">
    Quarterly financial data for 2006 and 2005 are as
    follows:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="38%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands,</i></font></td>

            <td colspan="8"
                align="center"
                valign="bottom"><font size="2"><b><u>Thirteen Weeks
                Ended</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>except per share
                amounts)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="13%"
                align="center"
                valign="bottom"><font size="2"><b><u>Apr. 1,
                2006</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="2"><b><u>July 1,
                2006</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="2"><b><u>Sep. 30,
                2006</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="2"><b><u>Dec. 30,
                2006</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Net
                sales</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">547,786</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">561,944</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">557,177</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">577,605</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Gross profit on
                sales</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">147,911</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">151,255</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">147,973</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">150,140</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Net
                income</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">14,937</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">15,491</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">11,565</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">14,017</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Basic and diluted
                earnings per share</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.55</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.57</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.43</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.52</font></td>
        </tr>
    </table>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="38%"
                align="left"
                valign="bottom"><font size="2"><i>(dollars in
                thousands,</i></font></td>

            <td colspan="6"
                align="center"
                valign="bottom"><font size="2"><b><u>Thirteen Weeks
                Ended</u></b></font></td>

            <td colspan="2"
                align="center"
                valign="top"><font size="2"><b><u>Fourteen Weeks
                Ended</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="2"><i>except per share
                amounts)</i></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="13%"
                align="center"
                valign="bottom"><font size="2"><b><u>Mar. 26,
                2005</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="2"><b><u>June 25,
                2005</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="2"><b><u>Sep. 24,
                2005</u></b></font></td>

            <td width="2%"
                align="center"
                valign="bottom">&nbsp;</td>

            <td width="12%"
                align="center"
                valign="bottom"><font size="2"><b><u>Dec. 31,
                2005</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Net
                sales</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">549,712</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">535,734</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">535,251</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">601,901</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Gross profit on
                sales</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">145,373</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">143,630</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">142,800</font></td>

            <td align="right"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">155,921</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Net
                income</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">16,764</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">14,625</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">13,667</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">18,365</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Basic and diluted
                earnings per share</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.62</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.54</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.51</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="right"
                valign="bottom"><font size="3">.68</font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman"><b>Note 11 Fair Value
          Information</b></font><font size="3"><br clear=
          "left"></font><font size="3"
          face="Times New Roman">The carrying amounts for cash,
          accounts receivable and accounts payable approximate fair
          value because of the short maturities of these
          instruments. The fair values of the company's marketable
          securities, as disclosed in Note 2, are based on quoted
          market prices.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Note 12
          Contingencies</b></font><font size="3"><br clear="left">
    The company is involved in various legal actions arising out of
    the normal course of business. The company also accrues for tax
    contingencies when it is probable that a liability to a taxing
    authority has been incurred and the amount of the contingency
    can be reasonably estimated, based on past experience. In the
    opinion of management, the ultimate disposition of these
    matters will not have a material adverse effect on the
    company's consolidated financial position, results of
    operations or liquidity.</font></p>

    <p align="center"><font size="3"><b>Page 25 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b><a name="0085">WEIS MARKETS,
            INC.</a></b></font>
        </center>
    </div>

    <p align="center"><font size="3"
          face="Times New Roman"><b>Report of Independent
          Registered Public Accounting Firm</b></font></p>

    <p><font size="3"
          face="Times New Roman">The Board of Directors and
          Shareholders</font></p>

    <p><font size="3"
          face="Times New Roman">Weis Markets, Inc.</font></p>

    <p><font size="3"
          face="Times New Roman">Sunbury, Pennsylvania</font></p>

    <p><font size="3">We have audited the accompanying consolidated
    balance sheets of Weis Markets, Inc. as of December 30, 2006
    and December 31, 2005, and the related consolidated statements
    of income, shareholders' equity, and cash flows for the fiscal
    years ended December 30, 2006, December 31, 2005 and December
    25, 2004 (52 weeks, 53 weeks and 52 weeks, respectively). We
    have also audited management's assessment, included in the
    accompanying Form 10-K, that Weis Markets, Inc. maintained
    effective internal control over financial reporting as of
    December 30, 2006, based on criteria established in Internal
    Control-Integrated Framework issued by the Committee of
    Sponsoring Organizations of the Treadway Commission (COSO).
    Weis Market, Inc.'s management is responsible for these
    consolidated financial statements, for maintaining effective
    internal control over financial reporting, and for its
    assessment of the effectiveness of internal control over
    financial reporting. Our responsibility is to express an
    opinion on these consolidated financial statements, an opinion
    on management's assessment, and an opinion on the effectiveness
    of the company's internal control over financial reporting
    based on our audits.</font></p>

    <p><font size="3">We conducted our audits in accordance with
    the standards of the Public Company Accounting Oversight Board
    (United States). Those standards require that we plan and
    perform the audits to obtain reasonable assurance about whether
    the consolidated financial statements are free of material
    misstatement and whether effective internal control over
    financial reporting was maintained in all material respects.
    Our audits of the consolidated financial statements included
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the consolidated financial statements, assessing
    the accounting principles used and significant estimates made
    by management, and evaluating the overall consolidated
    financial statement presentation</font><font size="3"
          face="Times New Roman">.</font></p>

    <p><font size="3">Our audits of internal control included
    obtaining an understanding of internal control over financial
    reporting, evaluating management's assessment, testing and
    evaluating the design and operating effectiveness of internal
    control, and performing such other procedures as we considered
    necessary in the circumstances. We believe that our audits
    provide a reasonable basis for our
          opinions</font><font size="3"
          face="Times New Roman">.</font></p>

    <p><font size="3">A company's internal control over financial
    reporting is a process designed to provide reasonable assurance
    regarding the reliability of financial reporting and the
    preparation of financial statements for external purposes in
    accordance with generally accepted accounting principles. A
    company's internal control over financial reporting includes
    those policies and procedures that (1) pertain to the
    maintenance of records that, in reasonable detail, accurately
    and fairly reflect the transactions and dispositions of the
    assets of the company; (2) provide reasonable assurance that
    transactions are recorded as necessary to permit preparation of
    financial statements in accordance with generally accepted
    accounting principles, and that receipts and expenditures of
    the company are being made only in accordance with
    authorizations of management and directors of the company; and
    (3) provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use, or disposition of
    the company's assets that could have a material effect on the
    financial statements.</font></p>

    <p><font size="3">Because of its inherent limitations, internal
    control over financial reporting may not prevent or detect
    misstatements. Also, projections of any evaluation of
    effectiveness to future periods are subject to the risk that
    controls may become inadequate because of changes in
    conditions, or that the degree of compliance with the policies
    or procedures may deteriorate.</font></p>

    <p><font size="3">In our opinion, the consolidated financial
    statements referred to above present fairly, in all material
    respects, the consolidated financial position of Weis Markets,
    Inc. as of December 30, 2006 and December 31, 2005, and the
    consolidated results of their operations and their cash flows
    for the fiscal years ended December 30, 2006, December 31, 2005
    and December 25, 2004 (52 weeks, 53 weeks and 52 weeks,
    respectively) in conformity with accounting principles
    generally accepted in the United States of America. Also in our
    opinion, management's assessment that Weis Markets, Inc.
    maintained effective internal control over financial reporting
    as of December 30, 2006, is fairly stated, in all material
    respects, based on criteria established in Internal
    Control-Integrated Framework issued by the Committee of
    Sponsoring Organizations of the Treadway Commission (COSO).
    Furthermore, in our opinion, Weis Markets, Inc. maintained, in
    all material respects, effective internal control over
    financial reporting as of December 30, 2006, based on criteria
    established in Internal Control-Integrated Framework issued by
    the Committee of Sponsoring Organizations of the Treadway
    Commission (COSO).</font></p>

    <p><font size="3">Our audits were conducted for the purpose of
    forming an opinion on the basic consolidated financial
    statements taken as a whole. Schedule II is presented for
    purposes of additional analysis and is not a required part of
    the basic consolidated financial statements. This schedule has
    been subjected to the auditing procedures applied in the audits
    of the basic consolidated financial statements and, in our
    opinion, is fairly stated in all material respects in relation
    to the basic consolidated financial statements taken as a
    whole.</font></p>

    <p><font size="3"
          face="Times New Roman">Philadelphia, Pennsylvania
          /S/Grant Thornton LLP<br clear="left">
    February 19, 2007</font></p>

    <p align="center"><font size="3"><b>Page 26 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b><a name="009">Item
    9.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in and
    Disagreements With Accountants on Accounting and Financial
    Disclosure:</b></font></p><br clear="left">

    <p><font size="3"
          face="Times New Roman">None.</font></p>

    <p><font size="3"><b><a name="0091">Item 9a. Controls and
    Procedures:</a></b></font></p>

    <p><font size="3"
          face="Times New Roman"><b>Management's Report on
          Disclosure Controls and Procedures</b></font></p>

    <p><font size="3">The Chief Executive Officer and the Chief
    Financial Officer of the company (its principal executive
    officer and principal financial officer, respectively) have
    concluded, based on their evaluation as of the close of the
    period covered by this Report, that the company's disclosure
    controls and procedures are effective to ensure that
    information required to be disclosed by the company in the
    reports filed or submitted by it under the Securities Exchange
    Act of 1934, as amended, is recorded, processed, summarized and
    reported within the time periods specified in the SEC's rules
    and forms, and include controls and procedures designed to
    ensure that information required to be disclosed by the company
    in such reports is accumulated and communicated to the
    company's management, including the Chief Executive Officer and
    Chief Financial Officer, as appropriate to allow timely
    decisions regarding required disclosure.</font></p>

    <p><font size="3"
          face="Times New Roman"><b>Management's Report on Internal
          Control Over Financial Reporting</b></font></p>

    <p><font size="3">The management of the company is responsible
    for establishing and maintaining adequate internal control over
    financial reporting.</font> <font size="3"
          face="Times New Roman">The company's internal control
          system was designed to provide reasonable assurance to
          the company's management and board of directors regarding
          the preparation and fair presentation of published
          financial statements.</font> <font size="3"
          face="Times New Roman">In making its assessment of
          internal control over financial reporting, management
          used the criteria issued by the Committee of Sponsoring
          Organizations of the Treadway Commission (COSO) in
          Internal Control&mdash;Integrated Framework. All internal
          control systems, no matter how well designed, have
          inherent limitations. Therefore, even those systems
          determined to be effective can provide only reasonable
          assurance with respect to financial statement preparation
          and presentation.</font></p>

    <p><font size="3"
          face="Times New Roman">With the participation of the
          Chief Executive Officer and the Chief Financial Officer,
          management concluded that the company's internal control
          over financial reporting was effective as of December 30,
          2006.</font></p>

    <p><font size="3"
          face="Times New Roman">Management's assessment of the
          effectiveness of the company's internal control over
          financial reporting as of December 30, 2006 has been
          audited by Grant Thornton LLP, an independent registered
          public accounting firm, as stated in their report which
          is included in Part II, Item 8, page 26 of this annual
          report on Form 10-K.</font></p>

    <p><font size="3">There were no changes in the company's
    internal control over financial reporting</font> <font size="3"
          face="Times New Roman">during the fiscal quarter ended
          December 30, 2006, that materially affected, or are
          reasonably likely to materially affect, the company's
          internal control over financial reporting.</font> </p>

    <p><font size="3"><b><a name="0092">Item
    9b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
    Information:</a></b></font></p>

    <p><font size="3">There was no information required on Form 8-K
    during this quarter that was not reported.</font></p>

    <p align="center"><font size="3"><b>Page 27 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b><a name="03">PART
    III</a></b></font></p>

    <p align="center">&nbsp;</p>

    <p><font size="3"><b><a name="010">Item
    10.&nbsp;</a>&nbsp;&nbsp;&nbsp;&nbsp;Directors, Executive
    Officers and Corporate Governance:</b></font></p>

    <p><font size="3">"Election of Directors" on pages 2 and 3,
    "Board Committees and Meeting Attendance, Audit Committee" on
    page 4, "Corporate Governance Matters" on page 5, "Compensation
    Tables" on pages 9 and 10 and "Stock Ownership, Section 16(a)
    Beneficial Ownership Reporting Compliance" on page 16 of the
    Weis Markets, Inc. definitive proxy statement dated March 9,
    2007 are incorporated herein by reference.</font></p>

    <p><font size="3"><b><a name="011">Item
    11.&nbsp;</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
    Compensation:</b></font></p>

    <p><font size="3">"Board Committees and Meeting Attendance,
    Compensation Committee" on page 5, "Executive Compensation,
    Compensation Discussion and Analysis" on pages 6 through 9,
    "Compensation Committee Report" on page 9, "Compensation
    Tables" on pages 9 through 13 and "Other Information Concerning
    the Board of Directors, Compensation Committee Interlocks and
    Insider Participation" on page 13 of the Weis Markets, Inc.
    definitive proxy statement dated March 9, 2007 are incorporated
    herein by reference.</font></p>

    <p><font size="3"><b><a name="012">Item
    12.</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security Ownership of
    Certain Beneficial Owners and Management and Related
    Stockholder Matters:</b></font></p>

    <p><font size="3">"Stock Ownership" on pages 15 and 16 of the
    Weis Markets, Inc. definitive proxy statement dated March 9,
    2007 is incorporated herein by reference. Equity compensation
    plan information is included in Part II, Item 8, "Note 7 Stock
    Option Plan" on page 23 of this annual report on Form
    10-K.</font></p>

    <p><font size="3"><b><a name="013">Item
    13.&nbsp;</a>&nbsp;&nbsp;&nbsp;&nbsp;Certain Relationships and
    Related Transactions, and Director Independence:</b></font></p>

    <p><font size="3">"Other Information Concerning the Board of
    Directors, Review and Approval of Related Party Transactions"
    on page 13 and "Independence of Directors" on page 4 of the
    Weis Markets, Inc. definitive proxy statement dated March 9,
    2007 are incorporated herein by reference.</font></p>

    <p><font size="3"
          face="Times New Roman"><b><a name="014">Item 14.</a>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal Accountant Fees
          and Services:</b></font></p>

    <p><font size="3">"Ratification Of Appointment Of Independent
    Registered Public Accounting Firm" on page 16 of the Weis
    Markets, Inc. definitive proxy statement dated March 9, 2007 is
    incorporated herein by reference.</font></p>

    <p align="center"><font size="3"><b>Page 28 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><a name="04"></a><a name=
    "3">PART IV</a></font></p>

    <p><font size="3"><b><a name="015">Item
    15.&nbsp;</a>&nbsp;&nbsp;&nbsp;&nbsp;Exhibits, Financial
    Statement Schedules:</b></font></p>

    <p><font size="3">(a)(1)&nbsp;&nbsp;</font><font size="3"
          face="Times New Roman">The company's 2006 Consolidated
          Financial Statements and the Report of Independent
          Registered Public Accounting Firms are included in Item 8
          of Part II.</font><font size="3"><br clear=
          "left"></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td colspan="4"
                align="left"
                valign="bottom"><a href="#008"><font size=
                "3">Financial Statements</font></a></td>

            <td width="21%"
                align="center"
                valign="bottom"><font size=
                "3"><u>Page</u></font></td>
        </tr>

        <tr>
            <td width="4%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#008"><font size=
                "3">Consolidated Balance Sheets</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">11</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#0081"><font size=
                "3">Consolidated Statements of
                Income</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">12</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#0082"><font size=
                "3">Consolidated Statements of Shareholders'
                Equity</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">13</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#0083"><font size=
                "3">Consolidated Statements of Cash
                Flows</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">14</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#0084"><font size=
                "3">Notes to Consolidated Financial
                Statements</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">15</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="left"
                valign="bottom"><a href="#0085"><font size=
                "3">Report of Independent Registered Public
                Accounting Firm</font></a></td>

            <td align="center"
                valign="bottom"><font size="3">26</font></td>
        </tr>
    </table>

    <p><font size="3">(a)(2) &nbsp;Financial statement schedules
    required to be filed by Item 8 of this form, and by Item
    15(c)(3) below:<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule
    II - Valuation and Qualifying Accounts, page 30 of</font>
    <font size="3"
          face="Times New Roman">this annual report on Form
          10-K</font><font size="3"><br clear="left"></font></p>

    <p><font size="3">All other schedules for which provision is
    made in the applicable accounting regulation of the Securities
    and Exchange Commission are not required under the related
    instructions or are inapplicable and therefore have been
    omitted.</font></p>

    <p><font size="3">(a)(3)&nbsp;&nbsp;A listing of exhibits filed
    or incorporated by reference is as follows:</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="17%"
                align="left"
                valign="bottom"><font size="3"><b><u>Exhibit
                No.</u></b></font></td>

            <td width="82%"
                align="left"
                valign="bottom"><font size=
                "3"><b><u>Exhibits</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">3-A</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Articles of
                Incorporation, filed as exhibit 4.1 in Form S-8 on
                September 13, 2002 and incorporated herein by
                reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">3-B<br clear=
                "left"></font></td>

            <td align="left"
                valign="bottom"><font size="3">By-Laws, filed as
                exhibit under Part IV, Item 14(c) in the annual
                report on Form 10-K for the fiscal year ended
                December 29, 2001 and incorporated herein by
                reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">10-A<br clear=
                "left"></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Profit Sharing
                Plan, filed as exhibit under Part IV, Item 15(c) in
                the annual report on Form 10-K for the fiscal year
                ended December 28, 2002 and incorporated herein by
                reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">10-B<br clear=
                "left"></font></td>

            <td align="left"
                valign="bottom"><font size="3">Stock Bonus Plan,
                filed as exhibit under Part IV, Item 15(c) in the
                annual report on Form 10-K for the fiscal year
                ended December 28, 2002 and incorporated herein by
                reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">10-C<br clear=
                "left"></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Supplemental
                Employee Retirement Plan, filed as exhibit under
                Part IV, Item 14(c) in annual report on Form 10-K
                for the fiscal year ended December 29, 2001 and
                incorporated herein by reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">10-D<br clear=
                "left"></font></td>

            <td align="left"
                valign="bottom"><font size="3">Executive Employment
                Agreement between the Company and Norman S. Rich,
                President and Chief Executive Officer, signed on
                March 23, 2006, commencing on January 1, 2006 and
                continuing thereafter through December 31, 2008,
                filed on Form 8-K March 24, 2006 and incorporated
                herein by reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">10-E</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Executive
                Employment Contract - CFO, filed as exhibit under
                Part IV, Item 15(c) in the annual report on Form
                10-K for the fiscal year ended December 28, 2002
                and incorporated herein by reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">10-F<br clear=
                "left"></font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Executive Benefits
                Agreement between the Company and Robert F. Weis,
                Chairman of the Board, signed on March 24, 2006,
                commencing immediately and continuing thereafter
                through December 31, 2023, filed on Form 8-K March
                24, 2006 and incorporated herein by
                reference.</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">21</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Subsidiaries of
                the Registrant</font><font size="3"
                  face="Times New Roman">, filed with this annual
                  report on Form 10-K</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">23</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Consent of Grant
                Thornton LLP,</font> <font size="3"
                  face="Times New Roman">filed with this annual
                  report on Form 10-K</font></td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">
                <p align="left"><font size="3">31.1</font></p>
            </td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Rule 13a-14(a)
                Certification - CEO,</font> <font size="3"
                  face="Times New Roman">filed with this annual
                  report on Form 10-K</font></td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#FFFFFF">
                <p align="left"><font size="3">31.2</font></p>
            </td>

            <td align="left"
                valign="bottom"
                bgcolor="#FFFFFF"><font size="3">Rule 13a-14(a)
                Certification - CFO,</font> <font size="3"
                  face="Times New Roman">filed with this annual
                  report on Form 10-K</font></td>
        </tr>

        <tr>
            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">
                <p align="left"><font size="3">32</font></p>
            </td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3"
                  face="Times New Roman">Certification Pursuant to
                  18 U.S.C. Section 1350, filed with this annual
                  report on Form 10-K</font></td>
        </tr>
    </table>

    <p><font size="3"
          face="Times New Roman">The company will provide a copy of
          any exhibit upon receipt of a written request for the
          particular exhibit or exhibits desired. All requests
          should be addressed to the company's principal executive
          offices.</font></p>

    <p><font size="3"
          face="Times New Roman">(b)&nbsp;The company files as
          exhibits to this annual report on Form 10-K, those
          exhibits listed in Item 15(a)(3) above.<br clear=
          "left"></font> </p>

    <p align="center"><font size="3"><b>Page 29 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p><font size="3"><b><a name="0151"></a><a name="16">Item
    15(c)(3).</a> Financial Statement Schedules</b></font></p>

    <p><font size="3"><b>Schedule II - Valuation and Qualifying
    Accounts:</b></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td colspan="11"
                align="center"
                valign="bottom">
                <div style="margin-left: 2em">
                    <center>
                        <font size="3"><b>SCHEDULE II - VALUATION
                        AND QUALIFYING ACCOUNTS</b></font>
                    </center>
                </div>
            </td>
        </tr>

        <tr>
            <td colspan="11"
                align="center"
                valign="bottom">
                <div style="margin-left: 2em">
                    <center>
                        <font size="3"><b>WEIS MARKETS,
                        INC.</b></font>
                    </center>
                </div>
            </td>
        </tr>

        <tr>
            <td colspan="11"
                align="center"
                valign="bottom"><font size="2"><i>(dollars in
                thousands)</i></font></td>
        </tr>

        <tr>
            <td width="32%"
                align="center"
                valign="bottom"><font size="3"><u>COL.
                A</u></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom"><font size="3"><u>COL.
                B</u></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="center"
                valign="bottom"><font size="3"><u>COL.
                C</u></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom"><font size="3"><u>COL.
                D</u></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom"><font size="3"><u>COL.
                E</u></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td colspan="3"
                align="center"
                valign="bottom"><font size=
                "3"><b><u>Additions</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b>Balance
                at</b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom"><font size="3"><b>Charged
                to</b></font></td>

            <td width="2%"
                align="left"
                valign="bottom">&nbsp;</td>

            <td width="11%"
                align="center"
                valign="bottom"><font size="3"><b>Charged
                to</b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b>Balance
                at</b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b>Beginning</b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b>Costs
                and</b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b>Accounts</b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b>Deductions</b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b>End
                of</b></font></td>
        </tr>

        <tr>
            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Description</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>of
                Period</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Expenses</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Describe</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size="3"><b><u>Describe
                (1)</u></b></font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="center"
                valign="bottom"><font size=
                "3"><b><u>Period</u></b></font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Year ended
                December 30, 2006:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Deducted from asset
                accounts:</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Allowance for
                uncollectible accounts</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,229</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,047</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,154</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,122</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Year ended
                December 31, 2005:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Deducted from asset
                accounts:</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Allowance for
                uncollectible accounts</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,693</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">496</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">960</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,229</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Year ended
                December 25, 2004:</font></td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>

            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"><font size="3">Deducted from asset
                accounts:</font></td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">Allowance for
                uncollectible accounts</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,498</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,576</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size=
                "3">---&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,381</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">$</font></td>

            <td align="right"
                valign="bottom"
                bgcolor="#EFEFEF"><font size="3">1,693</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>

            <td align="left"
                valign="bottom">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="11"
                align="left"
                valign="bottom"><font size="2">(1) Deductions are
                uncollectible accounts written off, net of
                recoveries.</font></td>
        </tr>
    </table>

    <p align="center"><font size="3"><b>Page 30 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <div style="margin-left: 2em">
        <center>
            <font size="3"><b>WEIS MARKETS, INC.</b></font>
        </center>
    </div>

    <p align="center"><font size="3"><b><a name=
    "05">SIGNATURES</a></b></font></p>

    <p><font size="3">&nbsp;</font></p>

    <p><font size="3">Pursuant to the requirements of Section 13 or
    15(d) of the Securities Exchange Act of 1934, the Registrant
    has duly caused this report to be signed on its behalf by the
    undersigned, thereunto duly authorized.</font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="16%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="26%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="34%"
                align="center"
                valign="top"><font size="3"><u>WEIS MARKETS,
                INC.</u></font></td>

            <td width="22%"
                align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size=
                "3">(Registrant)</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/Norman S.
                Rich</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Norman S.
                Rich</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">President and Chief
                Executive Officer</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">and
                Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>
    </table>

    <p><font size="3">Pursuant to the requirements of the
    Securities Exchange Act of 1934, this report has been signed
    below by the following persons on behalf of the Registrant and
    in the capacities and on the dates indicated.</font></p>

    <p align="center">&nbsp;</p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="16%"
                align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td width="26%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="34%"
                align="center"
                valign="top"><font size="3"><u>/S/Robert F.
                Weis</u></font></td>

            <td width="22%"
                align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Robert F.
                Weis</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Chairman of the Board
                of Directors</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/Jonathan H.
                Weis</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Jonathan H.
                Weis</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Vice Chairman and
                Secretary</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">and
                Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/Norman S.
                Rich</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Norman S.
                Rich</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">President and Chief
                Executive Officer</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">and
                Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/William R.
                Mills</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">William R.
                Mills</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Senior Vice President,
                Treasurer</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">and Chief Financial
                Officer</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">and
                Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/Richard E.
                Shulman</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Richard E.
                Shulman</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/Michael M.
                Apfelbaum</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Michael M.
                Apfelbaum</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size=
                "3">Date&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/09/2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3"><u>/S/Steven C.
                Smith</u></font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Steven C.
                Smith</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="center"
                valign="top"><font size="3">Director</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>
    </table>

    <p align="center">&nbsp;</p>

    <p align="center"><font size="3"><b>Page 31 of 31 (Form
    10-K)</b></font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <p align="right"><font size="3"><b><a name="21">EXHIBIT
    21</a></b></font></p>

    <p align="center"><font size="3"><b>WEIS MARKETS,
    INC.</b></font></p>

    <p align="center"><font size="3"><b>SUBSIDIARIES OF THE
    REGISTRANT</b></font></p>

    <p align="center">&nbsp;</p>

    <table cellspacing="0"
           cellpadding="5"
           width="100%">
        <tr>
            <td width="55%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="17%"
                align="center"
                valign="top"><font size="3"><u>State of
                Incorporation</u></font></td>

            <td width="15%"
                align="center"
                valign="top"><font size="3"><u>Percent Owned</u>
                <u>by Registrant</u></font></td>

            <td width="12%"
                align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">Albany Public Markets,
                Inc.</font></td>

            <td align="center"
                valign="top"><font size="3">New York</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">Dutch Valley Food
                Company, Inc.</font></td>

            <td align="center"
                valign="top"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">King's Supermarkets,
                Inc.</font></td>

            <td align="center"
                valign="top"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">Martin's Farm Market,
                Inc.</font></td>

            <td align="center"
                valign="top"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">Shamrock Wholesale
                Distributors, Inc.</font></td>

            <td align="center"
                valign="top"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">SuperPetz,
                LLC</font></td>

            <td align="center"
                valign="top"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">Weis Transportation,
                Inc.</font></td>

            <td align="center"
                valign="top"><font size=
                "3">Pennsylvania</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top"><font size="3">WMK Financing,
                Inc.</font></td>

            <td align="center"
                valign="top"><font size="3">Delaware</font></td>

            <td align="center"
                valign="top"><font size="3">100%</font></td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td colspan="4"
                align="left"
                valign="top"><font size="3">The consolidated
                financial statements include the accounts of the
                company and its subsidiaries.</font></td>
        </tr>
    </table>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><font size="3"><a href="#000">Table of
    Contents</a></font></p>

    <p align="right"><font size="3"><b>EXHIBIT 23</b></font></p>

    <p align="center"><font size="3"><b>WEIS MARKETS,
        INC.<br clear="left"></b></font></p>

    <p align="center"><font size="3"><b><a name=
       "231"></a><a name="233"></a><a name="314">Consent of
       Independent Registered Public Accounting
       Firm</a></b></font></p>

    <p><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have
    issued our report dated February 19, 2007, accompanying the
    consolidated financial statements and schedule, and
    management's assessment of the effectiveness of internal
    control over financial reporting included in the Annual Report
    of Weis Markets, Inc. on Form 10-K for the year ended December
    30, 2006. We hereby consent to the incorporation by reference
    of said report in the Registration Statement of Weis Markets,
    Inc. on Form S-8 (File No. 333-99535, effective September 13,
    2002).</font></p>

    <p><font size="3">Philadelphia,
    Pennsylvania&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="3"
          face="Times New Roman">/S/Grant Thornton
          LLP</font><font size="3"><br clear="left">
    February 19, 2007</font></p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000"><font size="3">Table of
    Contents</font></a></p>

    <p align="right"><font size="3"><b>EXHIBIT 31.1</b></font></p>

    <p align="center"><font size="3"><b>WEIS MARKETS,
        INC.<br clear="left"></b></font></p>

    <p align="center"><font size="3"><b><a name=
    "311">CERTIFICATION- CEO</a></b></font></p>

    <p><font size="3">I, Norman S. Rich, President and Chief
    Executive Officer of Weis Markets, Inc., certify
        that:<br clear="left"></font></p>

    <p><font size="3">1.&nbsp;&nbsp;I have reviewed this annual
    report on Form 10-K of Weis Markets, Inc.;<br clear=
    "left"></font></p>

    <p><font size="3">2.&nbsp;&nbsp;Based on my knowledge, this
    report does not contain any untrue statement of a material fact
    or omit<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to state a material fact
    necessary to make the statements made, in light of the
    circumstances under which such<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;statements were made, not
    misleading with respect to the periods covered by this annual
    report;<br clear="left"></font></p>

    <p><font size="3">3.&nbsp;&nbsp;Based on my knowledge, the
    financial statements, and other financial information included
    in this report,<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp; fairly present in all material
    respects the financial condition, results of operations and
    cash flows of the<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registrant as of, and for, the
    periods presented in this report;<br clear="left"></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="2%"
                align="right"
                valign="top">
                <p align="left"><font size="3">4.</font></p>
            </td>

            <td colspan="3"
                align="left"
                valign="top"><font size="3">The registrant's other
                certifying officer and I are responsible for
                establishing and maintaining disclosure controls
                and procedures (as defined in Exchange Act Rules
                13a-15(e) and 15d-15(e)) and internal control over
                financial reporting (as defined in Exchange Act
                Rules 13a-15(f) and 15d-15(f)) for the registrant
                and have:</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="top"><font size="3">a)</font></td>

            <td width="92%"
                align="left"
                valign="top"><font size="3">designed such
                disclosure controls and procedures, or caused such
                disclosure controls and procedures to be designed
                under our supervision, to ensure that material
                information relating to the&nbsp;registrant,
                including its consolidated subsidiaries, is made
                known to us by others within those
                entities,&nbsp;particularly during the period in
                which this annual report is being
                prepared;</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">b)</font></td>

            <td align="left"
                valign="top"><font size="3">designed such internal
                controls over financial reporting, or caused such
                internal control over financial reporting to be
                designed under our supervision, to provide
                reasonable assurance regarding the reliability of
                financial reporting and the preparation of
                financial statements for external purposes in
                accordance with generally accepted accounting
                principles;</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">c)</font></td>

            <td align="left"
                valign="top"><font size="3">evaluated the
                effectiveness of the registrant's disclosure
                controls and procedures and presented in this
                report our conclusions about the effectiveness of
                the disclosure controls and procedures, as of the
                end of the period covered by this report based on
                such evaluation; and</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">d)</font></td>

            <td align="left"
                valign="top"><font size="3">disclosed in this
                report any change in the registrant's internal
                control over financial reporting that occurred
                during the registrant's most recent fiscal quarter
                (the registrant's fourth fiscal quarter in the case
                of an annual report) that has materially affected,
                or is reasonably likely to materially affect, the
                registrant's internal control over financial
                reporting; and</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="right"
                valign="top"><font size="3">5.</font></td>

            <td colspan="3"
                align="left"
                valign="top"><font size="3">The registrant's other
                certifying officer and I have disclosed, based on
                our most recent evaluation of internal control over
                financial reporting, to the registrant's auditors
                and the audit committee of registrant's board of
                directors (or persons performing the equivalent
                functions):</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">a)</font></td>

            <td align="left"
                valign="top"><font size="3">all significant
                deficiencies and material weaknesses in the design
                or operation of internal controls over financial
                reporting which are reasonably likely to adversely
                affect the registrant's ability to record, process,
                summarize and report financial information;
                and</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">b)</font></td>

            <td align="left"
                valign="top"><font size="3">any fraud, whether or
                not material, that involves management or other
                employees who have a significant role in the
                registrant's internal control over financial
                reporting.</font></td>
        </tr>
    </table>

    <p><font size="3">Date:</font> <font size="3"
          face="Times New Roman">March 9, 2007</font><font size=
          "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>
    &nbsp;&nbsp;/S/ Norman S. Rich</u><br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Norman
    S. Rich<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President
    and</font></p>

    <p><font size=
    "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief
    Executive Officer</font></p>

    <p align="center">&nbsp;</p>

    <p align="center">&nbsp;</p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000">Table of Contents</a></p>

    <p align="right"><font size="3"><b>EXHIBIT 31.2</b></font></p>

    <p align="center"><font size="3"><b>WEIS MARKETS,
        INC.<br clear="left"></b></font></p>

    <p align="center"><font size="3"><b><a name=
    "312">CERTIFICATION- CFO</a></b></font></p>

    <p><font size="3">I, William R. Mills, Senior Vice President,
    Treasurer and Chief Financial Officer of Weis Markets, Inc.,
    certify that:<br clear="left"></font></p>

    <p><font size="3">1.&nbsp;&nbsp;I have reviewed this annual
    report on Form 10-K of Weis Markets, Inc.;<br clear=
    "left"></font></p>

    <p><font size="3">2.&nbsp;&nbsp;Based on my knowledge, this
    report does not contain any untrue statement of a material fact
    or omit<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to state a material fact
    necessary to make the statements made, in light of the
    circumstances under which such<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;statements were made, not
    misleading with respect to the periods covered by this annual
    report;<br clear="left"></font></p>

    <p><font size="3">3.&nbsp;&nbsp;Based on my knowledge, the
    financial statements, and other financial information included
    in this report,<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp; fairly present in all material
    respects the financial condition, results of operations and
    cash flows of the<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registrant as of, and for, the
    periods presented in this report;<br clear="left"></font></p>

    <table cellspacing="0"
           cellpadding="0"
           width="100%">
        <tr>
            <td width="2%"
                align="right"
                valign="top">
                <p align="left"><font size="3">4.</font></p>
            </td>

            <td colspan="3"
                align="left"
                valign="top"><font size="3">The registrant's other
                certifying officer and I are responsible for
                establishing and maintaining disclosure controls
                and procedures (as defined in Exchange Act Rules
                13a-15(e) and 15d-15(e)) and internal control over
                financial reporting (as defined in Exchange Act
                Rules 13a-15(f) and 15d-15(f)) for the registrant
                and have:</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="top">&nbsp;</td>

            <td width="2%"
                align="left"
                valign="top"><font size="3">a)</font></td>

            <td width="92%"
                align="left"
                valign="top"><font size="3">designed such
                disclosure controls and procedures, or caused such
                disclosure controls and procedures to be designed
                under our supervision, to ensure that material
                information relating to the&nbsp;registrant,
                including its consolidated subsidiaries, is made
                known to us by others within those
                entities,&nbsp;particularly during the period in
                which this annual report is being
                prepared;</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">b)</font></td>

            <td align="left"
                valign="top"><font size="3">designed such internal
                controls over financial reporting, or caused such
                internal control over financial reporting to be
                designed under our supervision, to provide
                reasonable assurance regarding the reliability of
                financial reporting and the preparation of
                financial statements for external purposes in
                accordance with generally accepted accounting
                principles;</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">c)</font></td>

            <td align="left"
                valign="top"><font size="3">evaluated the
                effectiveness of the registrant's disclosure
                controls and procedures and presented in this
                report our conclusions about the effectiveness of
                the disclosure controls and procedures, as of the
                end of the period covered by this report based on
                such evaluation; and</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">d)</font></td>

            <td align="left"
                valign="top"><font size="3">disclosed in this
                report any change in the registrant's internal
                control over financial reporting that occurred
                during the registrant's most recent fiscal quarter
                (the registrant's fourth fiscal quarter in the case
                of an annual report) that has materially affected,
                or is reasonably likely to materially affect, the
                registrant's internal control over financial
                reporting; and</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>
        </tr>

        <tr>
            <td align="right"
                valign="top"><font size="3">5.</font></td>

            <td colspan="3"
                align="left"
                valign="top"><font size="3">The registrant's other
                certifying officer and I have disclosed, based on
                our most recent evaluation of internal control over
                financial reporting, to the registrant's auditors
                and the audit committee of registrant's board of
                directors (or persons performing the equivalent
                functions):</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">a)</font></td>

            <td align="left"
                valign="top"><font size="3">all significant
                deficiencies and material weaknesses in the design
                or operation of internal controls over financial
                reporting which are reasonably likely to adversely
                affect the registrant's ability to record, process,
                summarize and report financial information;
                and</font></td>
        </tr>

        <tr>
            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top">&nbsp;</td>

            <td align="left"
                valign="top"><font size="3">b)</font></td>

            <td align="left"
                valign="top"><font size="3">any fraud, whether or
                not material, that involves management or other
                employees who have a significant role in the
                registrant's internal control over financial
                reporting.</font></td>
        </tr>
    </table>

    <p><font size="3">Date:</font> <font size="3"
          face="Times New Roman">March 9, 2007</font><font size=
          "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>
    &nbsp;&nbsp;/S/ William R. Mills</u><br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William
    R. Mills<br clear="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior
    Vice President,<br clear="left">
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Treasurer and</font></p>

    <p><font size=
    "3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief
    Financial Officer</font></p>

    <p align="center">&nbsp;</p>
    <hr>
     <!-- PAGEBREAK -->
    <br>
    <br>


    <h5 align="left"
        style="page-break-before:always"></h5>

    <p><a href="#000">Table of Contents</a></p>

    <p align="right"><font size="3"><b><a name="32">EXHIBIT 32
    </a></b></font></p>

    <p align="center"><font size="3"><b>WEIS MARKETS,
    INC.</b></font></p>

    <p align="center"><font size="3"><b>CERTIFICATION PURSUANT
    TO<br clear="left">
    18 U.S.C. SECTION 1350,<br clear="left">
    AS ADOPTED PURSUANT TO<br clear="left">
    SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</b></font></p>

    <p><font size="3">In connection with the annual report of Weis
    Markets, Inc. (the "company") on Form 10-K for the year ending
    December 30, 2006, as filed with the Securities and Exchange
    Commission on the date hereof (the "Report"), we, Norman S.
    Rich, President and Chief Executive Officer, and William R.
    Mills, Senior Vice President, Treasurer and Chief Financial
    Officer, of the company, certify, pursuant to and for purposes
    of 18 U.S.C. Section 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of 2002, that:</font></p>

    <p><font size="3">(1) to my knowledge the Report fully complies
    with the requirements of Section 13(a) or 15(d) of the
    Securities Exchange Act of 1934; and</font></p>

    <p><font size="3">(2) the information contained in the Report
    fairly presents, in all material respects, the financial
    condition and results of operations of the company.</font></p>

    <p><font size="3"><u>/S/ Norman S. Rich<br clear=
    "left"></u>Norman S. Rich<br clear="left">
    President and Chief Executive Officer<br clear=
    "left"></font><font size="3"
          face="Times New Roman">03/09/2007</font></p>

    <p><font size="3"><u>/S/ William R. Mills<br clear=
    "left"></u>William R. Mills<br clear="left">
    Senior Vice President, Treasurer and Chief Financial
    Officer<br clear="left">
    03/09/2007</font></p>

    <p><font size="3">A signed original of this written statement
    required by Section 906 has been provided to Weis Markets, Inc.
    and will be retained by Weis Markets, Inc. and furnished to the
    Securities and Exchange Commission or its staff upon
    request.</font></p>
    <hr>
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