<SEC-DOCUMENT>0001157523-14-001829.txt : 20140502
<SEC-HEADER>0001157523-14-001829.hdr.sgml : 20140502
<ACCEPTANCE-DATETIME>20140502070125
ACCESSION NUMBER:		0001157523-14-001829
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140502
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140502
DATE AS OF CHANGE:		20140502

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:			0928

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14706
		FILM NUMBER:		14806923

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
		BUSINESS PHONE:		828-669-2941

	MAIL ADDRESS:	
		STREET 1:		P O BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50856653.htm
<DESCRIPTION>INGLES MARKETS, INCORPORATED 8-K
<TEXT>
<html>
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    <p style="text-align: center">
      <br>
      <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-size: 12pt; font-family: Times New Roman"></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 cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 40%; padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date of Report (Date of earliest event reported)
          </p>
        </td>
        <td valign="top" style="width: 60%; border-bottom: solid black 1.0pt; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">May 2,
            2014</font>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

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

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td valign="bottom" style="width: 33%; border-bottom: solid black 1.0pt; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            North Carolina
          </p>
        </td>
        <td valign="bottom" style="width: 34%; border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            0-14706
          </p>
        </td>
        <td valign="bottom" style="width: 33%; border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            56-0846267
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="width: 33%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            of incorporation)
          </p>
        </td>
        <td valign="bottom" style="width: 34%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            File Number)
          </p>
        </td>
        <td valign="bottom" style="width: 33%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td valign="bottom" style="width: 33%; border-bottom: solid black 1.0pt; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            P.O. Box 6676, Asheville, NC
          </p>
        </td>
        <td style="width: 34%; border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="width: 33%; border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            28816
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="width: 33%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 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="width: 33%; text-align: center; 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 cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 45%; padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Registrant&#8217;s telephone number, including area code
          </p>
        </td>
        <td valign="top" style="width: 55%; border-bottom: solid black 1.0pt; text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (828) 669-2941
          </p>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            N/A
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 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="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

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

        </div>
      </div>
    </div>
    <p>
      <br>
      <b>Item 2.02&#160;&#160;Results of Operations and Financial Condition.</b>
    </p>
    <p style="text-align: justify">
      On May 2, 2014, Ingles Markets, Incorporated (&quot;IMKTA&quot;) issued a press
      release announcing financial information for its second quarter ended
      March 29, 2014.&#160;&#160;The press release is attached as Exhibit&#160;99.1 to this
      Form&#160;8-K.
    </p>
    <p style="white-space: nowrap">
      <b>Item 9.01&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
    <p style="white-space: nowrap">
      (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits.<br><br>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Exhibit
      Number</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Description
      of Exhibit</u><br>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;99.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Press
      release issued May 2, 2014
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

        </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 cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td style="width: 5%">

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

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

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

        </td>
        <td valign="top" style="width: 3%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="width: 52%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 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="width: 5%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="width: 40%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            May 2, 2014
          </p>
        </td>
        <td style="width: 3%">

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

        </td>
      </tr>
      <tr>
        <td valign="top" style="width: 5%; padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="width: 40%; padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="width: 3%; padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          By:
        </td>
        <td valign="top" style="width: 52%; border-bottom: solid black 1.0pt; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 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="width: 52%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 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="width: 52%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

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

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

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

        </td>
        <td valign="top" style="width: 80%; text-align: left; padding-left: 0.0px">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="width: 20%; text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          99.1
        </td>
        <td valign="top" style="width: 80%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release dated May 2, 2014
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">

    </p>
  </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a50856653ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2014 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <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 Higher Sales and Income for Second Quarter
      and First Half of Fiscal 2014</b></font>
    </p>
    <p>
      ASHEVILLE, N.C.--(BUSINESS WIRE)--May 2, 2014--Ingles Markets,
      Incorporated (NASDAQ:&#160;IMKTA) today reported higher sales and net income
      for the three and six months ended March 29, 2014 as compared with the
      three and six months ended March 30, 2013. Second quarter net sales rose
      $27.1 million to $947.8 million and net income increased 29.2% to
      $10.5&#160;million, compared with net income of $8.1 million for the prior
      year&#8217;s second quarter. For the first six months of fiscal 2014, net
      sales rose $37.2 million to $1.89 billion and net income increased 1.7%
      to $20.0 million, compared with the first six months of fiscal 2013.
    </p>
    <p>
      Robert P. Ingle II, Chief Executive Officer, stated, &#8220;We are pleased
      with our sales and net income growth this quarter. Our stores continue
      to focus on sales growth and that certainly made a difference this
      quarter.&#8221;
    </p>
    <p>
      <u><b>Second Quarter Results</b></u>
    </p>
    <p>
      Net sales increased by 2.9% to $947.8 million for the three months ended
      March&#160;29,&#160;2014, from $920.7 million for the three months ended March 30,
      2013. The growth in sales was negatively affected by the Easter holiday,
      which benefited sales in the second quarter of last fiscal year but will
      not occur until the third quarter this fiscal year. Comparable store
      sales excluding gasoline and extra Easter 2013 sales, increased 2.5%
      over the comparable quarters. The number of customer transactions
      (excluding gasoline) increased 0.5%, while the comparable average
      transaction size (excluding gasoline) increased 1.5% compared with the
      same quarter last year. Ingles operated 203 stores containing a total of
      approximately 11.1 million square feet at March&#160;29, 2014. In the past
      twelve months the Company opened one new store and closed one store,
      resulting in a slight increase in square footage.
    </p>
    <p>
      Gross profit for the March 2014 quarter increased 3.8% to $206.1
      million, compared with $198.6&#160;million for the second quarter of last
      fiscal year. Gross profit, as a percentage of sales, was 21.7% for the
      March 2014 quarter compared with 21.6% for the March 2013 quarter. Gross
      profit contributed by gasoline sales was lower this quarter, partly
      attributable to promotional activities involving gasoline sales.
    </p>
    <p>
      Operating and administrative expenses for the March 2014 quarter totaled
      $178.4 million, an increase of $3.4 million, or 2.0% over the March 2013
      quarter. The dollar growth in operating expenses was primarily in
      payroll and store base expenses, offset by better self-insurance claims
      experience.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

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

        </div>
      </div>
    </div>
    <p>
      The results for the prior year&#8217;s second quarter included $4.1 million in
      gains from the sale or disposal of assets compared with $83,000 in the
      second quarter of the current fiscal year. During the prior year second
      quarter, the Company sold a former store property. There was no
      comparable sale in the current year&#8217;s second quarter.
    </p>
    <p>
      Interest expense totaled $11.7 million for the three-month period ended
      March 29, 2014 and $15.7 million for the three-month period ended March
      30, 2013.
    </p>
    <p>
      Net income totaled $10.5 million for the three-month period ended March
      29, 2014, compared with $8.1 million for the three-month period ended
      March 30, 2013. Net income, as a percentage of sales, was 1.1% for the
      quarter ended March 29, 2014, compared with 0.9% for the quarter ended
      March&#160;30,&#160;2013. Basic and diluted earnings per share for Class A Common
      Stock were $0.47 and $0.46, respectively, for the quarter ended March
      29, 2014, compared to $0.35 and $0.33, respectively, for the quarter
      ended March 30, 2013. Basic and diluted earnings per share for Class B
      Common Stock were each $0.43 for the quarter ended March 29, 2014,
      compared with $0.32 of basic and diluted earnings per share for the
      quarter ended March 30, 2013.
    </p>
    <p>
      <u><b>First Half Results</b></u>
    </p>
    <p>
      Net sales increased $37.2 million to $1.89 billion for the six months
      ended March 29, 2014, from $1.86 billion for the six months ended March
      30, 2013. Excluding gasoline and extra Easter 2013 sales, grocery
      segment comparable store sales increased 0.8%.
    </p>
    <p>
      Gross profit for the six months ended March 29, 2014, totaled $409.6
      million compared with the $406.9 million for the first six months of
      last fiscal year. Gross profit, as a percentage of sales, was 21.6% for
      the March 2014 six-month period compared with 21.9% for the March 2013
      six-month period.
    </p>
    <p>
      Operating and administrative expenses increased $6.0 million, or 1.7%,
      to $355.8 million for the six months ended March 29, 2014, from $349.8
      million for the six months ended March&#160;30,&#160;2013. As with the three month
      results, payroll and store base expense increases were offset by lower
      self-insurance expense.
    </p>
    <p>
      Interest expense totaled $23.5 million for the six-month period ended
      March&#160;29,&#160;2014, compared with $31.3&#160;million for the six-month period
      ended March 30, 2013. The change in total debt during the first six
      months of fiscal year 2013 was insignificant.
    </p>
    <p>
      Net income totaled $20.0 million for the six-month period ended March
      29, 2014, compared with $19.7 million for the six-month period ended
      March 30, 2013. Net income, as a percentage of sales, was 1.1% for both
      six month periods. Basic and diluted earnings per share for Class A
      Common Stock were&#160;$0.91&#160;and $0.88, respectively, for the six months
      ended March 29, 2014, compared to $0.85 and $0.81, respectively, for the
      six months ended March 30, 2013. Basic and diluted earnings per share
      for Class B Common Stock were each $0.83 for the six months ended
      March&#160;29, 2014, compared to $0.77 of basic and diluted earnings per
      share for the six months ended March 30, 2013.
    </p>
    <p>
      Capital expenditures for the March&#160;2014 six-month period totaled $51.8
      million, compared with $47.0 million for the March 2013 six-month
      period. Capital expenditures for the entire fiscal year are expected to
      be approximately $100 million to $140 million, including expenditures
      for stores to open in fiscal 2014 and 2015, as well as for the Company&#8217;s
      ongoing remodeling program to multiple stores.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

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

        </div>
      </div>
    </div>
    <p>
      The Company currently has lines of credit totaling $175.0&#160;million, all
      of which is currently available except for $9.7&#160;million of issued but
      unused letters of credit at March&#160;29,&#160;2014. The Company believes its
      financial resources, including these lines of credit and other internal
      and anticipated external sources of funds, will be sufficient to meet
      planned capital expenditures, debt service and working capital
      requirements for the foreseeable future.
    </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 2013 Form 10-K
      and 2014 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&#160;supermarket operations, the Company operates neighborhood shopping
      centers, most of which contain an Ingles supermarket. The Company also
      owns a fluid dairy facility that supplies Company supermarkets
      and&#160;unaffiliated customers. The Company&#8217;s Class A Common Stock is traded
      on The NASDAQ Stock Market&#8217;s&#160;Global Select Market under the symbol
      IMKTA. For more information, visit Ingles&#8217; website at <u>www.ingles-markets.com</u>.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

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

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="width: 100%; font-family: Times New Roman; margin-right: 0; font-size: 8pt; margin-left: 0; margin-bottom: 10.0px">
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="13">
          <b>INGLES MARKETS, INCORPORATED</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="13">
          (Amounts in thousands except per share data)
        </td>
      </tr>
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="13">
          <b>Unaudited Financial Highlights</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="13">
          <b>Condensed Consolidated Statements of Income (Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td valign="middle" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="5">
          <b>Three Months Ended</b>
        </td>
        <td>

        </td>
        <td valign="middle" style="border-bottom: solid black 1.0pt; text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="5">
          <b>Six Months Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <b>March 29,</b>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <b>March 30,</b>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <b>March 29,</b>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <b>March 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2014</b></u>
          </p>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2013</b></u>
          </p>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2014</b></u>
          </p>
        </td>
        <td>

        </td>
        <td valign="middle" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2013</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net sales
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          947,761
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          920,694
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,892,885
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,855,672
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          206,124
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          198,646
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          409,630
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          406,851
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Operating and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          178,403
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          174,978
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          355,833
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          349,824
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gain from sale or disposal of assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          84
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          4,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          208
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          4,176
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          27,805
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          27,722
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          54,005
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          61,203
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Other income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          738
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          739
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,578
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,304
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          11,699
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          15,720
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          23,481
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          31,280
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          6,389
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          4,651
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          12,114
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          11,569
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          10,455
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          8,090
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          19,988
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          19,658
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Basic earnings per common share &#8211; Class A
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.47
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.35
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.91
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.85
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Diluted earnings per common share &#8211; Class A
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.46
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.88
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.81
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Basic earnings per common share &#8211; Class B
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.43
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.83
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.77
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Diluted earnings per common share &#8211; Class B
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.43
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.83
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          0.77
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Additional selected information:
        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

        </td>
        <td>

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

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

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          24,189
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          23,506
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          48,114
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          47,128
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Rent expense
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          3,656
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          3,844
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          7,227
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          7,390
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; margin-left: 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="height: 1.5pt; color: black">

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

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

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <b>March 29,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <b>September 28,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2014</b></u>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2013</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          ASSETS
        </td>
        <td>

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

        </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 valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          7,387
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          16,844
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Receivables-net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          64,924
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          59,930
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          333,423
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          329,691
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          25,111
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          28,075
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Property and equipment-net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,205,951
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,212,132
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 10.0px">
          Other assets
        </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; white-space: nowrap; padding-left: 0.0px">
          23,655
        </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; white-space: nowrap; padding-left: 0.0px">
          22,656
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          TOTAL ASSETS
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,660,451
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,669,328
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

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

        </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 colspan="2">

        </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 valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          13,815
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          18,957
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Accounts payable, accrued expenses and current portion of other
          long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          213,822
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          232,317
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          83,550
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          86,082
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 10.0px">
          Long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          897,318
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          893,514
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 10.0px">
          Other long-term liabilities
        </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; white-space: nowrap; padding-left: 0.0px">
          28,550
        </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; white-space: nowrap; padding-left: 0.0px">
          27,819
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 25.0px">
          Total Liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,237,055
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,258,689
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 10.0px">
          Stockholders' equity
        </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; white-space: nowrap; padding-left: 0.0px">
          423,396
        </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; white-space: nowrap; padding-left: 0.0px">
          410,639
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
          </p>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,660,451
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px">
          1,669,328
        </td>
      </tr>
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    <p>
      CONTACT:<br>Ingles Markets, Incorporated<br>Ron Freeman, 828-669-2941
      (Ext. 223)<br>Chief Financial Officer
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