Goldsmith Agio Helms Announces That
Spartan Stores Inc. (NASDAQ:SPTN)
Has Acquired Its Client, Felpausch Food Centers

MINNEAPOLIS, MN – June 21, 2007:
Goldsmith Agio Helms is pleased to announce that Spartan Stores Inc. (NASDAQ:SPTN) (“Spartan”) has completed the previously announced acquisition of 20 retail grocery stores, two fuel centers, and three convenience stores from G&R Felpausch Company (”Felpausch”).  The transaction is expected to increase Spartan’s annual retail sales by approximately $200 million.  The acquisition is expected to be accretive to net earnings during the second year of operation.

Felpausch is a grocery retailer in Michigan operating primarily under the Felpausch Food Center banner. Spartan, the nation's tenth largest grocery distributor, also operates 88 retail supermarkets and 19 deep-discount food and drug stores in Michigan and Ohio, with total annual sales exceeding $2 billion.


TRANSACTION HIGHLIGHTS
Felpausch Chief Executive Officer Mark Feldpausch said, "We are very pleased to have found a strategic partner to join these two premier Michigan grocery store operators. Felpausch is a natural fit with Spartan’s retail network and the combination of the two companies completes the great relationship Felpausch and Spartan Stores have enjoyed over the years. We are confident that Spartan Stores, along with our Felpausch associates, will work collaboratively to build an even stronger conventional retail grocery offering for consumers in our markets.”

David Iverson, a managing director of Goldsmith Agio Helms, stated, “This transaction is an important milestone for both parties. The Feldpausch family founded Felpausch 75 years ago and worked alongside its associates to build the company into one of the most successful independent retail grocery chains in Michigan. Spartan Stores’ acquisition of Felpausch will provide its employee–shareholders the ability to realize their long-term investment in the company while maintaining and enhancing the same shopping experience and family-culture for its customers.”

Kevin Jach, a managing director of Goldsmith Agio Helms added, “This acquisition is also an important transaction for Goldsmith Agio Helms, and represents the 47th transaction completed by our food team. We take pride in being a leading M&A advisor across all segments of the food industry and are proud of our association with Felpausch and Spartan.”

“The addition of Felpausch’s locations to Spartan’s growing retail network allows the two companies to continue their shared vision of providing an unsurpassed customer experience and product quality - further differentiating themselves from other competing grocery formats. This is a highly strategic combination as it provides Spartan with enhanced distribution opportunities and greater private label product placement in key markets," stated Sean Daugherty, also of Goldsmith Agio Helms.

Commenting on the transaction, Spartan Stores' Chairman, President and Chief Executive Officer Craig C. Sturken said, "We are very pleased to complete the acquisition of Felpausch retail stores, as these stores provide significant long-term store performance improvement potential and provide a strong complement to our existing geographic market foot print.  These additional stores also solidify our leading market share position in west Michigan, while expanding our market presence in central Michigan.”

THE SELLER
G & R Felpausch Company (www.felpausch.com) is a regional grocery retailer with locations in south-central and southwestern Michigan. Headquartered in Hastings, Michigan, the company operates its network of retail stores primarily under the Felpausch Food Center and Save-A-Lot banners. Felpausch also operates five convenience stores under the Xpressmart banner. Felpausch grocery stores (excluding Xpressmart formats) average 40,000 square feet and provide customers with a broad selection of grocery, health and beauty, and general merchandise items, consisting of more than 25,000 branded and private-label SKUs. Felpausch has earned a reputation as “the people who care,” by providing value to its customers in a small-town, big-service manner, and the company successfully competes by providing customized store level merchandising and services tailored to the customer base of each location.

THE BUYER
Spartan (www.spartanstores.com), (NASDAQ:SPTN) is the nation's tenth largest grocery distributor with warehouse facilities in Grand Rapids and Plymouth, Michigan. The Company distributes more than 40,000 private-label and national brand products to nearly 400 independent grocery stores in Michigan, Indiana and Ohio. Spartan Stores also owns and operates 88 retail supermarkets and 19 deep-discount food and drug stores in Michigan and Ohio, including Family Fare Supermarkets, Glen's Markets, D&W Fresh Markets, Felpausch Food Centers, and The Pharm.

ABOUT GOLDSMITH AGIO HELMS
Goldsmith Agio Helms (www.agio.com) is one of the nation's leading independent investment banking firms providing sophisticated corporate finance advisory services to middle-market businesses.  The firm's services include mergers and acquisitions, private placements of debt and equity, distressed advisory and restructuring, and financial advisory and opinion services.  The firm operates internationally from its offices in Minneapolis, New York, Chicago, Los Angeles, and Shanghai and through Agio International, a proprietary partnership of leading independent investment banks with offices in London, Edinburgh, Madrid, Milan, and Zurich. 

If you would like more information about this transaction, contact Dave Iverson  (diverson@agio.com ) or Kevin Jach (kjach@agio.com) at 612-339-0500.

---

Minneapolis • 225 South Sixth Street • 46th Floor • Minneapolis, MN 55402 • 612 339 0500

 New York • 11 West 42nd Street • 29th Floor • New York, NY 10036 • 212 758 8575

Chicago • 10 South Wacker Drive • 33rd Floor • Chicago, IL 60606 • 312 928 0760

Los Angeles • 1999 Avenue of the Stars • 12th Floor • Los Angeles, CA 90067 • 310 551 4111

Shanghai • 1366 Nanjing West Road • Plaza 66 Tower 2, 15/F, Suite 21
Shanghai, China 200040 • 86 21 6137 6025

Promotional Materials