Good day everyone. Welcome to the Ingles Markets Incorporated First Quarter Conference Call. Today’s call is being recorded. At this time, for opening remarks and introductions I would like to turn the call over to the Chief Financial Officer, Mr. Ron Freeman. Please go ahead.

Thank you. Good morning. Welcome to Ingles Markets Fiscal 2009 First Quarter Conference Call. With me today are Robert Ingle, Founder of our Company and Chief Executive Officer, Robert Ingle II, Chairman of the Board, Jim Lanning, President, and Tom Outlaw, Vice President of Sales and Marketing. Statements made on this call include forward looking statements as defined by and subject to the Safe Harbor as created by Federal Securities laws. Words such as expect, anticipate, intend, plan, believe, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed on this call. Ingles Markets, Incorporated does not undertake to update publicly any forward looking statements, whether as a result of new information, future events or otherwise. For a description of factors that could cause actual results to differ materially from that anticipated by forward-looking statements, you are referred to the Company's public filings, including the Form 10-K for the fiscal year ended September 27, 2008. In accordance with the long standing Company policy and in recognition of the extremely competitive nature of our industry this call will not address competitive issues or Ingles Marketing strategies other than what is included in the Company’s public filing. This morning, I will provide you with a summary of our first quarter results followed by additional comments. After that, we will be pleased to take your questions. Our press release issued this morning is available on our website at www.Ingles-Markets.com. We filed our Form 10-K for the quarter yesterday afternoon. It is available via our website as well. Net income for the December 2008 quarter totaled $11.1 million compared with net income of $12.7…

(Operator Instructions) Your first question comes from Bryan Hunt from Wachovia. Analyst for Bryan Hunt – Wachovia: Hi this is actually Meredith filling in for Bryan. Can you quantify the gallon increases during the quarters?

No we do not quantify gallon increases on any quarter or annual basis. Analyst for Bryan Hunt – Wachovia: Can you discuss your competitive environment? Have you seen any increase competitive openings or closings or based on any pricing pressures that could impact you going forward?

We compete on a lot of different fronts with a lot of different types of stores so it is difficult to quantify and as we mentioned at the start of the call, for competitive reasons, we prefer not to discuss our competition. Analyst for Bryan Hunt – Wachovia: Could you just give us a direction, higher or lower from what you have seen in the past?

I am really not able to do that.

Your next question comes from Emily Shanks from Barclays Capital. Emily Shanks – Barclays Capital: Good morning. I have a question around the current lines of credit outstanding of $24.2 million. I know this is one of the first maturities on those lines of credit that will begin on October 2009. Is any of the amounts drawn or a portion of what is coming due in October?

Well, again we have got these lines with different banks and we really do not get in to where the individual draws are from, but our lines are secure; we are fine. Emily Shanks – Barclays Capital: Okay. So should that balance be coming due in October 09, do you think that you will have the ability to simply just draw on one of the other lines to fund it?

When we need the line; yes, that is our intent. Emily Shanks – Barclays Capital: And then around the Letters of Credit facility that is maturing in April of 2009. What are your plans on that?

We intend to renew that as well. Emily Shanks – Barclays Capital: Are you currently in discussion with your banks on that?

Yes Emily Shanks – Barclays Capital: Are you getting positive indications from them? That they will be doing that?

They are just normal discussions that we have with our banks on an ongoing basis. We stay in very close touch with them on how we are doing and they keep in very close touch with us on how they are doing. So it is nothing out of the ordinary.

Analyst for Wayne Harris – Semaphore Management: Actually Paul Carpenter asking the question. Our firm has been a shareholder on and off for about 5 years and right now we have about 1% of the A shares and I have a broad question about strategy. From my point of view, looking at the increased capital spending in the last couple of years 2007 and 2008, you spent about $375 million or so which is up from the previous capital spending rate of maybe about $60, $70, $80 million a year. Looking at how your cash flows have changed since you embarked on that increased level of spending, it had not really gone up very much, so you have EBITDA of about $180 million or so and now it is about $190 million. So my question to you from a strategic standpoint is - how do you review those expenditure decisions? It is not a great return on investment. It would have been better maybe to buy back those tier bonds; you would still get a 9% return rate, 10% or 11% if you bought them back during the last few months when the market was down instead of spending all this capital and we do not have very much to show for it.

We believe that it is important to keep our store base modern. It is something that you have to do if you want to remain successful in this business and we had some great opportunities to develop some new stores in the past couple of years and it was very important for us to do that. Certainly the environment has changed now from a credit availability standpoint and also from a consumer spending standpoint and we are reacting to those changes. In addition the bonds are not due yet. They do not mature until December 2009. Analyst for Wayne Harris – Semaphore Management: I understand that. I think they are callable. I think they mature later than that if I am not mistaken.

You are correct. I think they mature December of 2011. I am sorry. [Cross Talking] away in December 2009. Analyst for Wayne Harris – Semaphore Management: But at the same time I am not as interested in the month to month competitive openings against your broad corporate strategy. The hidden gem of the Company has always been these real estate assets and hidden value, you never really gotten credit for it, maybe you could have realized some value when times were good but they are not good anymore but the CapEx of the Company really went up in the past 24 months. Maybe that was because the credit was available and cheap or maybe not but at least in the short term the report card is that there was not a great return of investment and having CMAP now, is that going to substantially change your strategy going forward? You have a lot of land parcels available for future development, in my mind; you probably do not have to spend that much now to still have that good pipeline for new sites. You could do some replacements. You could do some remodels but it would seem to me that you have the option to dramatically lower the capital spending without disadvantaging the competitive position of the stores because of all these expenditures in the last couple of years. I just want to know if that is something that is being considered. Do you evaluate these expenditures? Do you evaluate these expenditures on 1 or 2 year basis? Are you just going to keep spending like that as you see the sites come up without regard for the foreseeable near term return on investment?

I believe we have addressed that during the call. We believe in driving top line sales and we have reduced our CapEx guidance for this year, partially in reaction to general economic conditions. I believe I have answered your question.

Anything further Mr. Harris? Analyst for Wayne Harris – Semaphore Management: No, it is fine thank you.

I have no further questions at this time but I would like to give everyone another opportunity. (Operator instruction) It appears that there are no more questions today, Mr. Freeman I will turn the conference back to you for additional or closing remarks.

Thank you very much for joining us today. We appreciate your answers and we will speak to you after next quarter. Thank you very much.

That does conclude our conference call today. Thank you all for your participation.