<SEC-DOCUMENT>0001157523-11-002462.txt : 20110429
<SEC-HEADER>0001157523-11-002462.hdr.sgml : 20110429
<ACCEPTANCE-DATETIME>20110429070023
ACCESSION NUMBER:		0001157523-11-002462
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110429
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110429
DATE AS OF CHANGE:		20110429

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:			0929

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14706
		FILM NUMBER:		11790896

	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>8-K
<SEQUENCE>1
<FILENAME>a6702531.htm
<DESCRIPTION>INGLES MARKETS, INCORPORATED 8-K
<TEXT>
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    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 14pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Pursuant
      to Section 13 OR 15(d) of The Securities Exchange Act of 1934</b></font><br><br><br>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
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        <td valign="top" style="text-align: left; width: 40%; padding-left: 0.0px; padding-bottom: 2.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date of Report (Date of earliest event reported)
          </p>
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: center; width: 60%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">April
            29, 2011</font>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: center; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            INGLES MARKETS, INCORPORATED
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Exact name of registrant as specified in its charter)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
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    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
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        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; width: 33%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            North Carolina
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; width: 34%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            0-14706
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; width: 33%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            56-0846267
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; width: 33%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or other jurisdiction
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            of incorporation)
          </p>
        </td>
        <td valign="bottom" style="text-align: center; width: 34%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            File Number)
          </p>
        </td>
        <td valign="bottom" style="text-align: center; width: 33%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: left; width: 33%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            P.O. Box 6676, Asheville, NC
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt; width: 34%">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; width: 33%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            28816
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; width: 33%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="width: 34%">
          &#160;
        </td>
        <td valign="bottom" style="text-align: center; width: 33%; padding-left: 0.0px">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="text-align: left; width: 45%; padding-left: 0.0px; padding-bottom: 2.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Registrant&#8217;s telephone number, including area code
          </p>
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: left; width: 55%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (828) 669-2941
          </p>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            N/A
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Former name or former address, if changed since last report.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Item 2.02&#160;&#160;Results of Operations and Financial Condition.</b>
    </p>
    <p style="text-align: justify">
      On April 29, 2011, Ingles Markets, Incorporated (&quot;IMKTA&quot;) issued a press
      release announcing financial information for its second fiscal quarter
      ended March 26,&#160;2011.&#160;&#160;The press release is attached as Exhibit&#160;99.1 to
      this Form&#160;8-K.
    </p>
    <p>
      <br>
      <b>Item 9.01&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="text-align: left; width: 6%; padding-left: 0.0px">
          (d)
        </td>
        <td valign="top" style="text-align: left; width: 15%; padding-left: 0.0px">
          Exhibits.
        </td>
        <td style="width: 79%">

        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 15%">

        </td>
        <td style="width: 79%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td valign="top" style="text-align: left; width: 15%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Exhibit Number</u>
          </p>
        </td>
        <td valign="top" style="text-align: left; width: 79%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Description of Exhibit</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td valign="top" style="text-align: left; width: 15%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          99.1
        </td>
        <td valign="top" style="text-align: left; width: 79%; padding-left: 0.0px">
          Press release issued April 29, 2011
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <u><font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font></u>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 40%">

        </td>
        <td valign="top" style="text-align: center; width: 3%; padding-left: 0.0px; padding-bottom: 2.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: center; width: 52%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            INGLES MARKETS, INCORPORATED
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 40%">

        </td>
        <td valign="top" style="text-align: center; width: 3%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: center; width: 52%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Registrant)
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 40%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 52%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; width: 5%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="text-align: left; width: 40%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            April 29, 2011
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 52%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; width: 5%; padding-left: 0.0px; padding-bottom: 2.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: left; width: 40%; padding-left: 0.0px; padding-bottom: 2.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: left; width: 3%; padding-left: 0.0px; padding-bottom: 2.0px">
          By:
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: left; width: 52%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Ronald B. Freeman
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 40%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="text-align: left; width: 52%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Ronald B. Freeman
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 40%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="text-align: left; width: 52%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <u>EXHIBIT&#160;INDEX</u>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="text-align: left; width: 20%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Exhibit</u>
          </p>
        </td>
        <td valign="top" style="text-align: left; width: 80%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Description</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 20%">

        </td>
        <td valign="top" style="text-align: left; width: 80%; padding-left: 0.0px">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; width: 20%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          99.1
        </td>
        <td valign="top" style="text-align: left; width: 80%; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press Release dated April 29, 2011
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">

    </p>
  </body>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a6702531ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2011 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Ingles
      Markets, Incorporated Reports Increased Sales and Net Income for Second
      Quarter and First Half of Fiscal 2011</b></font>
    </p>
    <p style="text-align: center">

    </p>
    <p>
      ASHEVILLE, N.C.--(BUSINESS WIRE)--April 29, 2011--Ingles Markets,
      Incorporated (NASDAQ:&#160;IMKTA) today reported increased sales and net
      income for the three and six months ended March 26, 2011. Second quarter
      net sales rose 4.0% to $870.4 million and net income increased 38.0% to
      $7.7&#160;million compared with the prior year&#8217;s second quarter. For the
      first six months of fiscal 2011, net sales rose 3.9% to $1.74 billion
      and net income increased 32.4% to $15.4 million compared with the first
      six months of fiscal 2010.
    </p>
    <p>
      Robert P. Ingle II, chief executive officer, stated, &#8220;Our record results
      for the second quarter are a testament to the legacy of Robert Ingle,
      the Company&#8217;s founder, who passed during this quarter. He always
      emphasized increased sales and would have been proud of these results.
      Our entire management team remains committed to his focus on growing our
      business and providing top service to our customers.&#8221;
    </p>
    <p>
      <u><b>Second Quarter Results</b></u>
    </p>
    <p>
      Net sales increased by $33.4 million to $870.4 million for the three
      months ended March&#160;26,&#160;2011, from $837.0 million for the three months
      ended March 27, 2010. Ingles operated 203 stores at March 26, 2011,
      compared to 202 stores at March 27, 2010. Excluding gasoline, where
      retail prices were significantly higher than in the March 2010 quarter,
      total sales increased 2.4% and grocery segment comparable store sales
      increased 1.9% compared with the second quarter of the prior fiscal
      year. The number of customer transactions (excluding gasoline) increased
      0.8%, while the comparable average transaction size increased 1.5%
      compared with the same quarter last year.
    </p>
    <p>
      Gross profit for the March 2011 quarter increased 4.7% to $194.6
      million, an increase of $8.8&#160;million compared with the second quarter of
      last fiscal year. Gross profit, as a percentage of sales, rose to 22.4%
      for the March 2011 quarter compared with 22.2% for the March 2010
      quarter. Excluding gasoline sales, grocery segment gross profit as a
      percentage of sales increased to 26.0% for the three months ended
      March&#160;26,&#160;2011, compared with 25.5% for the same quarter of last fiscal
      year.
    </p>
    <p>
      Sales and gross profit dollars in the Company&#8217;s fluid dairy operations
      increased due to higher milk prices for the second quarter of fiscal
      2011 compared with the comparable fiscal 2010 quarter. The case volume
      of products sold decreased slightly over the comparable quarters.
    </p>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Operating and administrative expenses for the March 2011 quarter totaled
      $168.6 million, an increase of $6.7 million, or 4.2% over the March 2010
      quarter. Excluding gasoline sales and associated operating expenses
      (primarily payroll), operating and administrative expenses as a
      percentage of sales were 22.4% for the three months ended March 26,
      2011, compared with 22.0% for the three months ended March 27, 2010.
    </p>
    <p>
      Interest expense decreased $0.9 million for the three-month period ended
      March&#160;26,&#160;2011, to $15.7 million from $16.6 million for the three-month
      period ended March 27, 2010. Total debt at March 26, 2011, was $875.6
      million compared with $833.5&#160;million at March 27, 2010. The debt
      increase is attributable to the issuance in December 2010 of $99.7
      million in bonds for the construction of an additional distribution
      facility located adjacent to the current facility.
    </p>
    <p>
      Income tax expense totaled 35.6% of pre-tax income for the March&#160;2011
      quarter compared with 35.5% in the March 2010 quarter. Cash taxes paid
      decreased due to accelerated depreciation and other deductions.
    </p>
    <p>
      Net income rose to $7.7 million for the three-month period ended March
      26, 2011, compared with $5.6 million for the three-month period ended
      March 27, 2010. Net income, as a percentage of sales, rose to 0.9% for
      the quarter ended March 26, 2011, compared with 0.7% for the quarter
      ended March&#160;27,&#160;2010. Basic and diluted earnings per share for Class A
      Common Stock were $0.33 and $0.32 for the quarter ended March 26, 2011,
      compared to $0.24 and $0.23, respectively, for the quarter ended March
      27, 2010. Basic and diluted earnings per share for Class B Common Stock
      were each $0.30 for the quarter ended March 26, 2011, compared to $0.22
      of basic and diluted earnings per share for the quarter ended March 27,
      2010.
    </p>
    <p>
      <u><b>First Half Results</b></u>
    </p>
    <p>
      Net sales increased by $65.2 million to $1.74 billion for the six months
      ended March 26, 2011, from $1.68 billion for the six months ended March
      27, 2010. Excluding gasoline, where retail prices were significantly
      higher than the March 2010 six month period, sales increased 3.1% and
      grocery segment comparable store sales increased 2.4%. The number of
      customer transactions (excluding gasoline) increased 0.7%, while the
      comparable average transaction size increased 2.2% compared with the
      March 2010 six-month period.
    </p>
    <p>
      Gross profit for the six months ended March 26, 2011, increased 4.6%, to
      $388.1 million, an increase of $17.0 million compared with the first six
      months of last fiscal year. Gross profit, as a percentage of sales, was
      22.3% for the March 2011 six-month period compared with 22.1% for the
      March 2010 six-month period. Gross profit dollars increased due to the
      higher sales volume and inflationary effects on certain products.
      Excluding gasoline sales, grocery segment gross profit as a percentage
      of sales rose to 25.6% for the six months ended March 26, 2011, compared
      with 25.2% for the same period of last fiscal year.
    </p>
    <p>
      Gross profit as a percentage of sales for the Company&#8217;s milk processing
      subsidiary was 12.3% for the March 2011 six-month period, compared with
      12.4% of sales, for the March 2010 six-month period. Raw milk prices
      increased, but lower case volume sales and competitive issues had a
      dampening effect on gross margin.
    </p>
    <p>
      Operating and administrative expenses increased $13.4 million, or 4.2%,
      to $335.8 million for the six months ended March 26, 2011, from $322.4
      million for the six months ended March&#160;27,&#160;2010. As a percentage of
      sales (and excluding gasoline), operating and administrative expenses
      were 22.1% for the six-month period ended March 26, 2011, compared with
      21.8% for the six-month period ended March 27, 2010. Operating expense
      increases were driven by sales growth and store development activities,
      including higher personnel, insurance, depreciation and utility costs.
    </p>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Interest expense totaled $31.6 million for the six-month period ended
      March&#160;26,&#160;2011, compared with $32.8&#160;million for the six-month period
      ended March 27, 2010. Principal debt payments totaled $41.6 million
      during the March 2011 six-month period.
    </p>
    <p>
      Income tax expense as a percentage of pre-tax income decreased to 35.4%
      for the March 2011 six-month period compared with 35.9% for the
      comparable March 2010 period due to lower state taxes and increased tax
      credits.
    </p>
    <p>
      Net income totaled $15.4 million for the six-month period ended March
      26, 2011, compared with $11.6 million for the six-month period ended
      March 27, 2010. Net income, as a percentage of sales, was 0.9% for the
      six months ended March 26, 2011, and 0.7% for the six months ended March
      27, 2010. Basic and diluted earnings per share for Class A Common Stock
      were $0.66&#160;and $0.63 for the six months ended March 26, 2011, compared
      to $0.50 and $0.48, respectively, for the six months ended March 27,
      2010. Basic and diluted earnings per share for Class B Common Stock were
      each $0.60 for the six months ended March 26, 2011, compared to $0.45 of
      basic and diluted earnings per share for the six months ended March 27,
      2010.
    </p>
    <p>
      During the March 2011 six-month period, Ingles opened one new store and
      three remodeled stores. Capital expenditures for the March&#160;2011
      six-month period totaled $42.9 million, compared with $34.2 million for
      the March 2010 six-month period. Capital expenditures for the entire
      fiscal year are expected to be approximately $100 million to $140
      million in fiscal 2011, including expenditures for the new distribution
      facility and for stores to open in fiscal 2012.
    </p>
    <p>
      At March 26, 2011, the Company had $185 million of undrawn, committed
      credit facilities. The Company believes, based on its current results of
      operations and financial condition, that its financial resources,
      including existing bank lines of credit, short- and long-term financing
      expected to be available to it and internally generated funds, will be
      sufficient to meet planned capital expenditures and working capital
      requirements for the foreseeable future, including any debt service
      requirements of additional borrowings. Over the next twelve months,
      scheduled principal debt payments total $88.0 million.
    </p>
    <p>
      <i>The comments in this press release contain certain forward-looking
      statements. Ingles undertakes no obligation to publicly release any
      revisions to any forward-looking statements contained herein to reflect
      events or circumstances occurring after the date hereof or to reflect
      the occurrence of unanticipated events, except as required by law.</i> <i>Ingles&#8217;
      actual results may differ materially from those projected in
      forward-looking statements made by, or on behalf of, Ingles. Factors
      that may affect results include changes in business and economic
      conditions generally in Ingles&#8217; operating area, pricing pressures,
      increased competitive efforts by others in Ingles&#8217; marketing areas and
      the availability of financing for capital improvements. A more detailed
      discussion of these factors may be found in reports filed by the Company
      with the Securities and Exchange Commission including its 2010 Form 10-K
      and 2011 Forms 10-Q.</i>
    </p>
    <p>
      Ingles Markets, Incorporated is a leading supermarket chain with
      operations in six southeastern states. Headquartered in Asheville, North
      Carolina, the Company operates 203 supermarkets. In conjunction with its
      supermarket operations, the Company also operates 70 neighborhood
      shopping centers, all but 12 of which contain an Ingles supermarket. The
      Company&#8217;s Class A Common Stock is traded on The NASDAQ Stock Market&#8217;s
      Global Select Market under the symbol IMKTA. For more information, visit
      Ingles&#8217; website at <u>www.ingles-markets.com</u>.
    </p>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="14">
          <b>INGLES MARKETS, INCORPORATED</b>
        </td>
      </tr>
      <tr>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="14">
          (Amounts in thousands except per share data)
        </td>
      </tr>
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="14">
          <b>Unaudited Financial Highlights</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="14">
          <b>Condensed Consolidated Statements of Income (Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="middle" style="border-bottom: solid black 1.0pt; text-align: center; padding-left: 0.0px" colspan="5">
          <b>Three Months Ended</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="middle" style="border-bottom: solid black 1.0pt; text-align: center; padding-left: 0.0px" colspan="5">
          <b>Six Months Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>March 26,</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>March 27,</b>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>March 26,</b>
        </td>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="3">
          <b>March 27,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2">
          <b>2011</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2">
          <b>2010</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2">
          <b>2011</b>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="3">
          <b>2010</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          870,371
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          837,005
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,743,124
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,677,958
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          194,636
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          185,869
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          388,117
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          371,130
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Operating and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          168,569
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          161,845
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          335,824
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          322,446
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Rental income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          553
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          395
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          868
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          669
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gain (loss) from sale or disposal of assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          7
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          21
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          (193
        </td>
        <td valign="bottom" style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          26,630
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          24,426
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          53,181
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          49,160
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Other income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,076
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          843
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          2,201
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,696
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          15,713
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          16,599
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          31,568
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          32,750
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          4,271
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          3,075
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          8,440
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          6,494
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          7,722
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          5,595
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          15,374
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          11,612
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          Basic earnings per common share &#8211; Class A
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.33
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.24
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.66
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.50
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          Diluted earnings per common share &#8211; Class A
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.32
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.23
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.63
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.48
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          Basic earnings per common share &#8211; Class B
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.30
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.22
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.60
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.45
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          Diluted earnings per common share &#8211; Class B
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.30
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.22
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.60
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          0.45
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Additional selected information:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Depreciation and amortization expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          21,367
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          21,663
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          42,314
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          43,263
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Rent expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          3,674
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          4,170
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          7,542
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          7,832
        </td>
        <td>

        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="10">
          <p>
            <b>Condensed Consolidated Balance Sheets (Unaudited)</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>March 26,</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="middle" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>September 25,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2">
          <b>2011</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap" colspan="2">
          <b>2010</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          ASSETS
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          23,420
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          57,855
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Certificates of deposit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>&#8212;</b>
          </p>
        </td>
        <td valign="bottom" style="text-align: right; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <p style="margin-bottom: 0px; margin-top: 0px">
            6,000
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Receivables-net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          55,449
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          53,081
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          295,581
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          286,431
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          17,703
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          16,544
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Property and equipment-net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,087,397
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,089,391
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Restricted investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          95,622
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          <b>&#8212;</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px; padding-bottom: 2.0px">
          Other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          21,198
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          19,998
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          TOTAL ASSETS
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,596,370
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,529,300
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          LIABILITIES AND STOCKHOLDERS' EQUITY
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Current maturities of long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          87,961
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          92,185
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Accounts payable, accrued expenses and current portion of other
            long-term liabilities
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          223,401
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          218,971
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          68,901
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          72,213
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          787,638
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          725,314
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px; padding-bottom: 2.0px">
          Other long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          7,522
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          6,777
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 25.0px">
          Total Liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,175,423
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,115,460
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px; padding-bottom: 2.0px">
          Stockholders' equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          420,947
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          413,840
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,596,370
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap">
          1,529,300
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p>
      CONTACT:<br>Ingles Markets, Incorporated<br>Ron Freeman, 828-669-2941,
      ext. 223<br>Chief Financial Officer
    </p>
    <p>

    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
