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<SEC-DOCUMENT>0001116679-06-001653.txt : 20060628
<SEC-HEADER>0001116679-06-001653.hdr.sgml : 20060628
<ACCEPTANCE-DATETIME>20060628104058
ACCESSION NUMBER:		0001116679-06-001653
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060628
DATE AS OF CHANGE:		20060628

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INGLES MARKETS INC
		CENTRAL INDEX KEY:			0000050493
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				560846267
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14706
		FILM NUMBER:		06928663

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
		BUSINESS PHONE:		7046692941

	MAIL ADDRESS:	
		STREET 1:		P O BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>ing11k-062706.htm
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Washington, D.C.  20549</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>FORM 11-K</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ANNUAL REPORT</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>PURSUANT TO SECTION 15(d) OF THE</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECURITIES EXCHANGE ACT OF 1934</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(Mark One)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>x</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>For the fiscal year ended December 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>[__]</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>For the transition period from ______ to _________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Commission file number: 0-14706</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>A.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Full title of the plan and the address of the plan, if different from that of the issuer named below:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Ingles Markets, Incorporated</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>B.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2in;text-align:left;'><font size=2>Ingles Markets, Incorporated</font></p>


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            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>P.O. Box 6676</font></p> </td>
        <td  width="115">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="192" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Asheville, North Carolina 28816</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse;  '>
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        <td width="601" style='padding:0in 5.4pt 0in 5.4pt; height:1.35in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><small>AUDITED</small> <small>FINANCIAL</small> <small>STATEMENTS</small> <small>AND</small> <small>SUPPLEMENTAL</small> <small>SCHEDULES</small></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:normal'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:normal'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:172.8%'><font size=2>As of December 31, 2005 and 2004 and for the year ended December 31, 2005 </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:172.8%'><font size=2>with Report of Independent Registered Public Accounting Firm</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Audited Financial Statements and Supplemental Schedules</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>As of December 31, 2005 and 2004</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>and for the Year Ended December 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Contents</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="637" style='border-collapse:collapse'>
    <tr >
        <td width="609" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Report of Independent Registered Public Accounting Firm</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Audited Financial Statements</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="637" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Statements of Net Assets Available for Benefits</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr></table>


<table border="0" cellspacing=0 cellpadding=0 width="637" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Statement of Changes in Net Assets Available for Benefits</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="637" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notes to Financial Statements</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Supplemental Schedules</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:left;'><font size=2>Schedule G, Part III &#150; Schedule of Nonexempt Transactions for the Year Ended </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="641" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>December 31, 2005</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12</font></p> </td> </tr>
    <tr >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Schedule H, Line 4i &#150; Schedule of Assets (Held at End of Year)-December 31, 2005</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;13</font></p> </td>
        <td  width="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="14" ></td>

        <td width="525" ></td>

        <td width="3" ></td>

        <td width="29" ></td>

        <td width="3" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Report of Independent Registered Public Accounting Firm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Plan Administrative Committee</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><font size=2>We have audited the accompanying statements of net assets available for benefits of the Ingles Markets, Incorporated Investment/Profit Sharing Plan as of December 31, 2005 and 2004, and the related statement of changes in net assets available for benefits for the year ended December&nbsp;31, 2005. These financial statements are the responsibility of the Plan&#146;s management. Our responsibility is to express an opinion on these financial statements based on our audits.</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><font size=2>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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan&#146;s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan&#146;s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. </font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><font size=2>In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2005 and 2004, and the changes in its net assets available for benefits for the year ended December 31, 2005, in conformity with U.S. generally accepted accounting principles. </font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><font size=2>Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets (held at end of year) as of December 31, 2005 and nonexempt transactions for the year ended December 31, 2005 are presented for purposes of additional analysis and are not a required part of the financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=6>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/S/ ERNST &amp; YOUNG LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Greenville, South Carolina</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>June 12, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
<br>
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</div>




<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Statements of Net Assets Available for Benefits</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid;height:9.0pt'>
        <td width="384" valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December 31</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>2005</font></b></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>2004</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Assets</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Investments at fair value:</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:9.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Employer securities</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;$25,471,802</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;$21,325,767</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:9.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Collective trust funds</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;17,313,683</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,402,138</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:9.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Mutual funds</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;17,951,849</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,371,224</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:9.0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Loans to participants</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,362,097</font></b></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,142,219</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;64,099,431</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,241,348</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Cash</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;115,410</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:34.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>70,834</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Receivables:</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:9.0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Participant contributions</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157,588</font></b></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#150;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Total assets</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;64,372,429</font></b></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,312,182</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Liabilities</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Due to broker, net</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,040</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,982</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Net assets available for benefits</font></p> </td>
        <td width="96" valign=top style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;$64,287,389</font></b></p> </td>
        <td width="96" valign=top style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;$57,241,200</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>See accompanying notes.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>2</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
<br>
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</div>




<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Statement of Changes in Net Assets Available for Benefits</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Year Ended December 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>Additions</font></b></p> </td>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net appreciation in fair value of investments</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>7,594,251</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Dividends</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;905,178</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Interest on participant loans</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170,221</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,669,650</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Contributions:</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:9.0pt;text-indent:0in;text-align:left;margin-top:1.0pt;margin-bottom:0in;line-height:151.2%'><font size=2>Participants</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,357,442</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Total additions</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;12,027,092</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>Deductions </font></b></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Distributions to participants</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,638,030</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Administrative expenses</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;327,986</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Corrective distributions</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,887</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Total deductions</font></p> </td>
        <td width="96" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:6.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,980,903</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net increase</font></p> </td>
        <td width="96" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,046,189</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net assets available for benefits at beginning of year</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:6.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;&nbsp;57,241,200</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="480" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net assets available for benefits at end of year </font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$64,287,389</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>See accompanying notes.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>3</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>December 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>1. Description of the Plan</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The following description of the Ingles Markets, Incorporated Investment/Profit Sharing Plan (the&nbsp;&#147;Plan&#148;) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan&#146;s provisions. Copies of the Plan document are available from the Plan Administrative Committee.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>General</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The Plan is a defined contribution plan covering substantially all employees of Ingles Markets, Incorporated (the &#147;Company&#148; and &#147;Plan Sponsor&#148;) and its wholly-owned subsidiary Milkco, Inc. who have completed one year of eligibility service as defined in the Plan document and are at least 18 years of age. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (&#147;ERISA&#148;), as amended.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Contributions</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The Plan provides for three types of contributions: (i) Company profit sharing plan contributions to the Ingles Stock Fund (Class B) made by the Company &#150; discretionary in nature; (ii) participant 401(k) contributions from 1% to 50% (in increments of 1%) of their pre-tax annual compensation as defined in the Plan document (subject to regulatory limitations), and (iii) Company 401(k) matching contributions, discretionary in nature and determined by the Company for each payroll period, limited to a maximum of 5% of a participant&#146;s compensation as defined in the Plan document. In addition, all participants who have attained age 50 before the close of the Plan year shall be eligible to make catchup contributions, also subject to regulatory limitations.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>In 2005, the Company made discretionary 401(k) matching contributions of $553,876 which were funded through forfeitures. The Company made no discretionary profit sharing contributions during 2005.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Participant Accounts</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Each participant&#146;s account is credited with the participant&#146;s contributions and with allocations of Plan earnings and any Company matching and profit-sharing contributions. Allocations are based on participant account balances, participant compensation as defined in the Plan document, or participant contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant&#146;s account.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>4</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>1. Description of the Plan (continued)</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Upon enrollment in the Plan, participants may direct participant and Company matching contributions in 1% increments to any of the Plan&#146;s fund options. No participant 401(k) contributions can be made to the Ingles Stock Fund. Participants may change their investment options daily.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Vesting and Forfeitures</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Contributions by participants plus actual earnings thereon are immediately 100% vested and nonforfeitable. Participants become vested in the Company&#146;s matching and profit sharing contributions on a graduated basis with 100% vesting occurring after the completion of six years of service. </font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Forfeited balances are utilized as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a. </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:5pt'><font size=2>First, to restore the nonvested portion of the Company contribution accounts of certain terminated participants who subsequently participate in the Plan as a rehire as described in the Plan document.</font></p> </td> </tr></table>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>b. </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Second, at the discretion of the Plan Sponsor, to pay Plan expenses.</font></p> </td> </tr></table>

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        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>c. </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Third, to reduce Plan Sponsor contributions as described in the Plan document.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Forfeitures of $567,870 were used during 2005 to reduce the Company&#146;s matching contributions and to pay certain administrative expenses. Unallocated forfeitures at December 31, 2005 and 2004 were $970,780 and $1,280,744, respectively.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Participant Loans</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Participants may borrow from their fund accounts a minimum of $500 to a maximum equal to the lesser of $50,000 or 50% of their vested balances with the term of the loan not exceeding five years except for loans to purchase the borrower&#146;s principal residence whose term shall not exceed ten years. The loans are secured by the balance in the participant&#146;s account. The interest rate used will be comparable to rates charged by local lending institutions for similar loans. Principal and interest are paid ratably through employee payroll deductions.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>1. Description of the Plan (continued)</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Payment of Benefits</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Upon termination of service, death, disability or retirement, a participant, or their beneficiary in the case of death, may receive a lump-sum amount equal to the vested value of his or her account.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Administrative Expenses</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Certain legal and accounting fees and certain administrative expenses relating to the Plan are paid by the Company and will not be reimbursed by the Plan. Other allowable expenses such as investment advisory fees are paid by the Plan.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Credit Risk</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements and schedule of the Plan. Because the Ingles Stock Fund is not diversified, it may experience wider variation in value than the other Plan funds.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Plan Termination</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>2. Summary of Accounting Policies</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Basis of Accounting</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The financial statements are prepared on the accrual basis of accounting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>2. Summary of Accounting Policies (continued)</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Investment Valuation and Income Recognition</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The Plan&#146;s investments are stated at fair value. Quoted market prices of the Ingles Markets, Incorporated Class A Common Stock are used to value the Ingles Markets, Incorporated Class B Common Stock. The fair value of the participation units owned by the Plan in collective trust funds held by the trustee are based on quoted redemption values on the last business day of the Plan year. Securities traded on a national securities exchange are valued at the closing price on the last business day of the Plan year. The loans to participants are valued at their outstanding balances, which approximate fair value.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>Use of Estimates</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>3. Investments</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The primary trustee for the Plan, Wachovia Bank, N.A., is responsible for maintaining custody of the investment funds, excluding Ingles Markets, Incorporated stock. The Plan Administrative Committee appoints the trustees responsible for maintaining custody of the Ingles stock component of the Ingles Stock Funds. </font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>During 2005, the Plan&#146;s investments (including investments purchased, sold, as well as held during the year) appreciated in value as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net Realized and Unrealized Appreciation in Fair Value of Investments</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='border-top:solid black 1.0pt; padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Employer securities (quoted market prices)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>6,397,133</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0in;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mutual funds (quoted market prices)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:69.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>381,191</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Collective trust funds (quoted redemption values)</font></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:69.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>815,927</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="384" valign=top style='padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0in;text-indent:56.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=2>Total</font></p> </td>
        <td  colspan="2" valign=top style='border-bottom: double black 2.25pt; padding:0in 4.0pt 0in 4.0pt'>
            <p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>7,594,251</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>3. Investments (continued)</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Investments that represent 5% or more of the fair value of the Plan&#146;s net assets are as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='border-bottom:solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2005</font></b></p> </td>
        <td width="120" valign=top style='border-bottom:solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December 31, 2004</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Employer Securities:</font></p> </td>
        <td width="120" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:19.15pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ingles Stock Fund &#150; Class B*</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>24,688,427</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>20,890,692</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mutual Funds:</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Evergreen Short Intermediate Bond Fund Class I</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,814,580</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,850,906</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Van Kampen Equity Income Fund Class A</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,183,047</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5,703,557</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Collective Trust Funds:</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stable Portfolio Group Trust Fund of Wachovia</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,008,595</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8,276,406</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Enhanced Stock Market Fund of Wachovia</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8,305,088</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8,125,732</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0in;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans to participants</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,362,097</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,142,219</font></b></p> </td> </tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="216" style='border-collapse:collapse'>
    <tr >
        <td width="16" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:normal'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>*  </font></p> </td>
        <td width="176" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nonparticipant-directed.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>4. Nonparticipant-Directed Investments</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments is as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December 31, 2005</font></b></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December 31, 2004</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net assets:</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:9.9pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Employer securities:</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:9.25pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Ingles Stock Fund &#150; Class B</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>24,688,427</font></b></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>20,890,692</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>Year ended </font></b><br> <b><font size=2>December 31, 2005</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Changes in net assets:</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:11.25pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net appreciation in fair value</font></p> </td>
        <td width="120" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>6,268,308</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:9.9pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Distributions to participants</font></p> </td>
        <td width="120" valign=bottom >
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(1,813,469)</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:9.9pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Transfers to other plan funds</font></p> </td>
        <td width="120" valign=bottom >
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(540,936)</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:9.9pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:151.2%'><font size=2>Administrative expenses</font></p> </td>
        <td width="120" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(116,168)</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Total</font></p> </td>
        <td width="120" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>3,797,735</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>5. Income Tax Status</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The Plan has received a determination letter from the Internal Revenue Service dated September 25, 2003 stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the&nbsp;&#147;Code&#148;) and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan administrator believes the Plan is being operated in compliance with the applicable requirement of the Code and, therefore, believes that the Plan, as amended, is qualified and the related trust is tax exempt. </font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>9</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>6. Differences Between Financial Statements and Form 5500</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 at:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='margin-left:.4pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December 31, 2005</font></b></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>December 31, 2004</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:9.2pt;text-indent:-9.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net assets available for benefits per the financial statements</font></p> </td>
        <td width="120" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>64,287,389</font></b></p> </td>
        <td width="120" valign=bottom >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>57,241,200</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Less: Contributions receivable</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>157,588</font></b></p> </td>
        <td width="120" valign=bottom >
            <p style='margin-left:0pt;text-indent:65.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#150;</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Net assets available for benefits per the Form 5500</font></p> </td>
        <td width="120" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>64,129,801</font></b></p> </td>
        <td width="120" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>57,241,200</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>The following is a reconciliation of contributions per the financial statements to the Form 5500:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='margin-left:.4pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:9.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><b><font size=2>Year Ended December 31, 2005</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:9.25pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Contributions per the financial statements</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>3,357,442</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Less: Contributions receivable at end of year</font></p> </td>
        <td width="120" valign=top style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>157,588</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="456" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:151.2%'><font size=2>Contributions per the Form 5500</font></p> </td>
        <td width="120" valign=top style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>3,199,854</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>7. Voluntary Correction Program</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>During the 2001 Plan year, the Plan Sponsor discovered various errors in the administration of the Plan. The errors consisted of failure to obtain the proper Qualified Joint and Survivor Annuity waivers, failure to use forfeitures, failure to restore forfeited Company contributions for rehires and failure to make payments to terminated participants with small account balances. The Plan filed the &#147;Request for Consideration Under the Employee Plans Voluntary Correction Program&#148; with the Internal Revenue Service in 2002. In March of 2004, the Plan Sponsor received a Compliance Statement from the Internal Revenue Service. The Internal Revenue Service accepted the Plan&#146;s proposed corrections to the errors noted above. The Plan made all corrections in accordance with the Compliance Statement by August 2004, the deadline required by the IRS. All costs were borne by the Plan Sponsor and there was no
effect on the Plan&#146;s financial statements. The Plan administrator believes that the Plan has taken appropriate action to prevent these matters from reoccurring. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>10</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Notes to Financial Statements (continued)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:left;'><b><font size=2>8. Party-in-Interest Transaction</font></b></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><font size=2>On March 31, 2005, the Plan Sponsor advanced the Plan $1,241,000 for the purpose of making distributions of participants&#146; holdings in the Ingles Stock Fund. Due to restrictions on the trading periods of the Ingles stock, a temporary loan was made to alleviate these cash flow needs. This loan was interest free and was repaid through the conversion of the Ingles Class B stock to Class A stock and subsequent market sale of the Class A shares. This loan was repaid to the Plan Sponsor on December 30, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>11</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=6>Supplemental Schedules</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>EIN:  56-0846267  Plan Number:  001</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Schedule G, Part III &#150; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Schedule of Nonexempt Transactions</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Year Ended December 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="144" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(a)</font></b><br> <b><font size=2>Identity of Party Involved</font></b></p> </td>
        <td width="144" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(b)</font></b><br> <b><font size=2>Relationship to Plan, Employer, or Other Party-in-Interest</font></b></p> </td>
        <td width="288" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(c)</font></b><br> <b><font size=2>Description of Transactions including <BR> Maturity Date, Rate of Interest, <BR> Collateral, Par, or Maturity Value</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top >
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=top >
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Ingles Markets, Incorporated</font></p> </td>
        <td width="144" valign=top >
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Employer/Sponsor</font></p> </td>
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:151.2%'><font size=2>On March 31, 2005, the Plan Sponsor advanced the Plan $1,241,000 for the purpose of making distributions of participants&#146; holdings in the Ingles Stock Fund. Due to restrictions on the trading periods of the Ingles stock, a temporary interest free loan was made to alleviate these cash flow needs. This loan was repaid to the Plan Sponsor on December 30, 2005.</font></p>
<p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>12</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>


</div>




<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Ingles Markets, Incorporated Investment/Profit Sharing Plan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>EIN:  56-0846267  Plan Number:  001</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Schedule H, Line 4i &#150; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Schedule of Assets (Held at End of Year)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>December 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="700" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2> (a)</font></b></p> </td>
        <td width="178" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(b) Identity of Issue, Borrower, Lessor or</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Similar Party</font></b></p> </td>
        <td width="317" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(c) Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value</font></b></p> </td>
        <td width="98" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(d) Cost</font></b></p> </td>
        <td width="102" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>(e) Current</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Value</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Collective Trust Funds:</font></b></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank, N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Stable Portfolio Group Trust Fund of Wachovia</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;</font><b><font size=2>9,008,595</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank, N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Enhanced Stock Market Fund of Wachovia</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8,305,088</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>17,313,683</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Mutual Funds:</font></b></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0in;margin-bottom: 0in;line-height:129.6%'><font size=2>Evergreen Short Intermediate Bond Fund Class I</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,814,580</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>AIM Basic Value Fund Class A</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>451,125</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Goldman Sachs Small Cap Value Fund Class A </font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;1,355,438</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>American Funds Growth Fund of America Class A</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>750,369</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Dreyfus MidCap Index Fund, Inc.</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;2,452,603</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Van Kampen Equity Income Fund Class A</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;6,183,047</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:.5pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Wachovia Bank N.A.</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Templeton Foreign Fund Class A</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;2,944,687</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;17,951,849</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Employer Securities:</font></b></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18.5pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Ingles Markets, Incorporated  </font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>Ingles Stock Fund - Class B</font></p>
<p style='margin-left:9.4pt;text-indent:-.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 10,453,992</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;24,688,427</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18.5pt;text-indent:-9.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Ingles Markets, Incorporated   </font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Ingles Class A Stock Fund </font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>783,375</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:18.5pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;25,471,802</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>*</font></b></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-6.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Loans to participants</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.4pt;text-indent:-9.4pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in;line-height:129.6%'><font size=2>Interest rates of 5.0% to 10.5%; maturity dates of 2006-2015 </font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>**</font></p> </td>
        <td width="102" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,362,097</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="30" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="178" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="317" valign=top style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="98" valign=bottom style='padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 3.95pt 0in 3.95pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&nbsp;$64,099,431</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>__________</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="231" style='border-collapse:collapse'>
    <tr >
        <td width="20" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*  </font></p> </td>
        <td width="211" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Represents a party-in-interest.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:justify;'><font size=2>** Cost information has been included only for all non-participant directed investments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>13</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>


</div>




<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SIGNATURES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="457" style='border-collapse:collapse'>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="199" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ingles Markets Incorporated</font></p> </td>
        <td  width="19">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment/Profit Sharing Plan</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="579" style='border-collapse:collapse'>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date: June 23, 2006</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Robert P. Ingle&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td>
        <td  width="77">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="116" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Robert P. Ingle</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Plan Administrative Committee Chairman</font></p> </td> </tr>
    <tr>
        <td width="215" ></td>

        <td width="43" ></td>

        <td width="104" ></td>

        <td width="87" ></td>

        <td width="69" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2in; text-indent:0.5in;text-align:left;'><font size=2>By:</font><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ James W. Lanning&nbsp;&nbsp;&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></u></p>


<table border="0" cellspacing=0 cellpadding=0 width="569" style='border-collapse:collapse'>
    <tr >
        <td width="288" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="139" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>James W. Lanning</font></p> </td>
        <td  width="143">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Plan Administrative Committee Member</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2in; text-indent:0.5in;text-align:left;'><font size=2>By:</font><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Ronald B. Freeman &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>


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            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ronald B. Freeman</font></p> </td>
        <td  width="137">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Plan Administrative Committee Member</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>14</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>EXHIBIT INDEX</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibit 23</font></p> </td>
        <td width="221" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Consent of Ernst &amp; Young LLP</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>15</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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<TYPE>EX-23
<SEQUENCE>2
<FILENAME>ex23.htm
<DESCRIPTION>EX. 23.1
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>Exhibit 23</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>Consent of Independent Registered Public Accounting Firm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-74459) pertaining to the Investment/Profit Sharing Plan of Ingles Markets, Incorporated of our report dated June 12, 2006, with respect to the consolidated financial statements and supplemental schedules of Ingles Markets, Incorporated Investment/Profit Sharing Plan included in the Annual Report (Form 11-K) for the year ended December 31, 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ ERNST &amp; YOUNG LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Greenville, South Carolina</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>June 23, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.12in; text-indent:-0.12in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
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