URGI United Retail Grp. (MM)

United Retail Group, Inc. (NASDAQ-GM: �URGI�) today announced that net sales decreased 5% to $31.2 million during July 2007 from $32.8 million during July 2006. Comparable store sales decreased 6% for the month versus a 4% increase in July 2006. Net sales increased 1% for the second fiscal quarter to $122.3 million from $120.9 million in the same quarter last year. Comparable store sales declined 1% for the second fiscal quarter versus a 6% increase in the same quarter last year. Net sales increased 1% for the fiscal year-to-date to $233.3 million from $230.3 million in the same period last year. Comparable store sales for the fiscal year-to-date were flat. Online sales increased 39% for the month of July, 52% for the fiscal quarter and 52% for the fiscal year to date. Raphael Benaroya, the Company�s Chairman, President and Chief Executive Officer, commented: �The spring/summer season just ended was challenging in terms of consumer spending and unseasonable weather earlier in the season. In response, we increased promotional activity to bring inventory in line, which affected margins. With transactions higher than last year, we were able to maintain our record sales on a year-over-year basis both Company wide and per average store. Now, with residual summer inventory in good shape, our overall inventory and merchandise selection are well positioned as we head into the Fall selling season. We remain confident in the fundamentals of our business concept and continue to be focused on our growth strategy.� United Retail Group, Inc. is a specialty retailer of large-size women�s fashion apparel, footwear and accessories featuring AVENUE� brand merchandise. The Company operates 485 AVENUE� stores with 2,139,000 square feet of selling space, as well as the AVENUE.COM� website at www.avenue.com. The above release contains certain brief forward-looking statements concerning the Company�s operations and performance. The Company cautions that any forward-looking statements are summary in nature, involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company�s control. Accordingly, the Company�s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The following additional factors, among others, could also affect the Company�s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this release or otherwise made by management: threats of terrorism; war risk; shifts in consumer spending patterns, overall economic conditions; the impact of increased competition; variations in weather patterns; uncertainties relating to execution of the Company�s product repositioning strategy; store lease expirations; increases in interest rates; the ability to retain, hire and train key personnel; risks associated with the ability of the Company�s manufacturers to deliver products in a timely manner; political instability and other risks associated with foreign sources of production and increases in fuel costs. The reports filed by the Company with the Securities and Exchange Commission contain additional information on these and other factors that could affect the Company�s operations and performance. The Company does not intend to update the forward-looking statements contained in the above release, which should not be relied upon as current after today�s date.