United Retail Group Announces 4% May Comparable Store Sales Increase

Business Wire, June 7, 2007

ROCHELLE PARK, N.J. -- United Retail Group, Inc. (NASDAQ-GM: "URGI") today announced that net sales increased 6% to $44.5 million for May 2007 from $42.1 million for May 2006. Notably, the shift in the timing of Mother's Day on the retail fiscal calendar shifted some of the sales associated with the holiday to the fiscal month of April 2007 from the fiscal month of May 2007.

Comparable store sales grew 4% for the month on top of a 9% increase in May 2006.

For the fiscal year-to-date, net sales increased 3% to $155.5 million from $151.5 million in the same period last year.

Comparable store sales grew 1% for the fiscal year-to-date on top of a 5% increase in the same period last year.

Online sales increased 61% for the month of May and 54% for the fiscal year-to-date versus the comparable periods of fiscal 2006.

Raphael Benaroya, the Company's Chairman of the Board, President and Chief Executive Officer, commented: "We are pleased with our 4% comparable store sales increase for May, which was on top of a 9% increase in May of fiscal 2006. Moreover, we experienced favorable sales indicators at the store level during the month, achieving a new record in sales per average store. For the full Mother's Day shopping period, which included one week in the fiscal month of April and two weeks in the fiscal month of May, average store sales increased over 10% versus the same calendar three week period of fiscal 2006. Our merchandise assortment is resonating well with our customers as we enter the summer selling season."

United Retail Group, Inc. is a specialty retailer of large-size women's fashion apparel, footwear and accessories featuring AVENUE[R] brand merchandise. The Company operates 487 AVENUE[R] stores with 2,146,000 square feet of selling space, as well as the AVENUE.COM[R] 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 factors, among others, could 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, consumer preferences and overall economic conditions; the impact of competition and pricing; variations in weather patterns; fluctuations in consumer acceptance of the Company's products; changes in the ability to develop new merchandise; 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.