Marsh Supermarkets, Inc. Completes $25 Million Loan

INDIANAPOLIS, Jan. 11  /PRNewswire-FirstCall/ -- Marsh Supermarkets, Inc. (NASDAQ:MARSANASDAQ:andNASDAQ:MARSB), today announced that on January 6, 2006, the Company received the proceeds of a $25 million two-year term loan.  The proceeds of the loan were used to reduce the outstanding borrowings under the Company's revolving credit facility, increasing the Company's available borrowings to approximately $55 million as of January 10, 2006.

Don E. Marsh, Chairman and Chief Executive Officer, stated, "The term loan enhances the Company's liquidity position and continued commitment to further progress on the previously announced process of identifying and considering strategic alternatives for the Company."

The Company also announced that on January 6, 2006, Douglas W. Dougherty was appointed to the newly-created position of Executive Vice President - Finance and Administration.  Mr. Dougherty will retain his responsibilities of Chief Financial Officer in addition to assuming additional administrative duties with the goal of improving cash flow and reducing debt.

Marsh is a leading regional chain, operating 70 Marsh(R) supermarkets, 38 LoBill(R) Foods stores, 8 O'Malia(R) Food Markets, 160 Village Pantry(R) convenience stores, 2 Arthur's Fresh Market(R) stores, and 1 Savin*$(SM), in Indiana, western Ohio, and Illinois.  The Company also operates Crystal Food Services(SM), which provides upscale catering, cafeteria management, office coffee, coffee roasting, vending and concessions, and restaurant management, and Primo Banquet Catering and Conference Centers; Floral Fashions(R), McNamara(R) Florist and Enflora(R) - Flowers for Business.

Cautionary Note Regarding Forward-Looking Statements

This report includes certain forward-looking statements (statements other than those made solely with respect to historical fact).  Actual results could differ materially and adversely from those contemplated by the forward-looking statements due to known and unknown risks and uncertainties, many of which are beyond the Company's control.  The forward-looking statements and the Company's future results, liquidity and capital resources are subject to risks and uncertainties including, but not limited to, the following:  uncertainty regarding the effect or outcome of the Company's decision to explore strategic alternatives; the entry of new or remodeled competitive stores into the Company's market areas; the level of discounting and promotional spending by competitors; the Company's ability to improve comparable store sales; the level of margins achievable in the Company's operating divisions; the stability and timing of distribution incentives from suppliers; changes in the terms on which suppliers require the Company to pay for store merchandise; softness in the local economy; the Company's ability to control expenses including employee medical costs, labor, credit card fees, and workers compensation and general liability expense; uncertainties regarding gasoline prices and margins; the success of the Company's new and remodeled stores; uncertainties regarding future real estate gains due to limited real estate holdings available for sale; potential interest rate increases on variable rate debt, as well as terms, costs and the availability of capital; the Company's ability to collect outstanding notes and accounts receivable; uncertainties related to state and federal taxation and tobacco and environmental legislation; uncertainties associated with pension and other retirement obligations; uncertainties related to the outcome of pending litigation; the timely and on budget completion of store construction, conversion and remodeling; and other known and unknown risks and uncertainties.  The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. 

DATASOURCE: Marsh Supermarkets, Inc.



CONTACT:  David Sease of Sease, Gerig & Associates, [phone], for

Marsh Supermarkets, Inc.

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