IGA HOLDS ANNUAL LICENSE FEES AT 2002 RATE

CHICAGO, IL – IGA USA today announced the Company will not increase annual license fees in the year 2003. The decision to forego the usually yearly increase in license fees was made to reward IGA Retailers for the exceptional retail performance during 2002’s turbulent economy. The Board, convened by teleconference, believed this is appropriate appreciation of the strong IGA retail base.

“Although IGA closed a satisfying year, establishing performance records in some sectors, we recognize we’re experiencing a challenging retail environment,” said Dr. Thomas Haggai, Chairman and CEO of IGA, INC. “Considering the same economic factors could be in play for the greater part of 2003, we thought it prudent to not burden our Retailers with a license fee increase this year. This positive action on the behalf of our Hometown Proud Supermarkets is the best evidence of the IGA Alliance working together to make sure our IGA Family businesses remain strong and profitable.”

IGA, the only global supermarketer based in the United States, is the world’s largest voluntary supermarket network with aggregate worldwide retail sales of more than $21 billion per year. The Alliance includes more than 4,400 Hometown Proud Supermarkets worldwide, supported by 37 distribution companies and more the 55 major manufacturers, vendors and suppliers encompassing everything from grocery to equipment items. IGA ranks in the top 10 in world food supermarketing. IGA has operations in 48 states and 43 countries, commonwealths and territories on all six inhabited continents.