Welcome to the Ingles Markets, Incorporated second 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.

Welcome to Ingles Markets fiscal 2009 second quarter conference call. With me today are Robert Ingle Founder of our Company and Chief Executive Officer, Robert Ingle II, Chairman of the Board, and Jim Lanning President. 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 Form 10-K for the fiscal year ended September 27, 2008. This morning, I will provide you with a summary of our second quarter and six-month results followed by additional comments. After that, we will be pleased to take your questions. Our press release was issued yesterday evening and is available on our website at www.ingles-markets.com. We expect to file our 10-Q for the quarter later this week. It will be available on our website as well. First, our second quarter results. Net sales totaled $789.2 million for the March 2009 quarter, an increase over sales of $782.8 million for the quarter that ended in March 2008. Grocery segment comparable store sales increased 4.9%, excluding gasoline sales and the effect of the Easter holiday. Easter occurred during the company's second fiscal quarter of 2008, but will occur in the third fiscal…

(Operator Instructions) Our first question comes from Bryan Hunt – Wachovia. Bryan Hunt – Wachovia: Ron, I was wondering if you could address the gross profit margin decline on your grocery segment. During the quarter it was down about 50 bps. Could you tell us where that stems from?

Well, there's a lot of price competition going on right now. We're going to be very competitive during the tough economic times that we're experiencing right now, and in some cases that means you price pretty aggressively. Bryan Hunt – Wachovia: Okay. And along those lines, could you talk about your sales mix, whether you're seeing any major changes and whether it's private label, organics, in the deli, bakery or meat categories. Where are you seeing one, the most growth and maybe one, the greatest weakness?

Well, we're not seeing any significant differences from what we've seen over the past six and nine months since the economy went into recession. And we've talked before about the shift from dining out to purchases of ready prepared meals and overall increase in the industry of private label purchases and that's still out there. Bryan Hunt – Wachovia: Okay. And then looking at operating expenses, I would have expected a pretty material decline in your distribution cost just because the decrease in diesel fuel in the second quarter, as well as the decline in plastics costs, which I think you all have alluded to in the past. Could you talk about maybe the major, since we don't have your 10-Q yet, some of the major changes that are taking place in your operating cost line?

Well, the biggest changes in operating costs are the interest and depreciation from the greater level of store development that we've had over the last 18 months or so. And associated with that when you open a larger number of new stores, you've got a certain amount of front-end loaded expenses with that. You staff up to make sure services levels are excellent and off to a good start, and it just takes a while. And in this economy it takes a little while longer for the sales to ramp up to provide that operating leverage. Bryan Hunt – Wachovia: Okay. And just along that line of question, I mean the new stores have been a drag on earnings, especially this quarter. But given the current environment, when do you expect those stores to mature and to hit your hurdle rates on cost of capital.

Given that we're in an economy that we haven't been in for a long time now, I would not want to put a line in the sand out there as to when that would happen. Bryan Hunt – Wachovia: Okay and last two questions. One, if you look at your inventories they're up 27 million year-over-year and yet there's been some deflation in items such as the dairy category, is a good example. Could you talk about maybe what's going on in inventories? Do you expect some of this is seasonal and it's going to cycle out just to the timing of Easter?

Yes, there is a little bit of an Easter effect since that happened in the first week of April. With all the new stores and with those new stores being larger, you need more inventory to support that. Bryan Hunt – Wachovia: Okay, so if I were to look at inventory per square foot basis, I would imagine the numbers would be a little less than a 9.3% growth on an inventory per store basis.

I haven't run those numbers. Bryan Hunt – Wachovia: Okay. And the last question, it appears you're second largest competitor, Bi-Lo, they filed Chapter 11 during the quarter. It looks like they're closing 17 stores, according to their bankruptcy filings. Could you tell us how many of those stores you directly compete with?

We don't talk about our competitors.

(Operator Instructions) Currently we have no questions in the queue and I would like to take this opportunity to remind our audience its star 1 if you would like to ask a question. We'll pause one moment as we await additional responses. And we have a follow-up question from Bryan Hunt – Wachovia. Bryan Hunt – Wachovia: Well, this is just the Bryan Hunt show. I'll stick with one more question. If you look at the, one, the returns you're generating on new stores and given the economic environment, does this cause you all to maybe to change the tempo of CapEx since you're not getting the returns on the new store builds that you like and it's causing leverage to creep higher? Do you think you may dial back CapEx going into next year?

Well, if you've looked at past reports, we have dialed back the forward guidance on CapEx to where it's now below $200 million, which we had been saying the past few quarters. I think one thing that's very important to keep in mind here is new stores are a long-term process. Yes, we wish we were in a better economy and we were seeing those things pickup a little bit better, but we're very pleased with those new stores and the locations they're in and they're going to be good performers over the long-term. So, there's not a one-to-one affect on what we've done recently with what we want to be able to do going forward. But we do acknowledge that we lowered the CapEx guidance for a number of factors not just what's happened with the last few stores we built. Bryan Hunt – Wachovia: Could you tell us where the three new stores were located, as well as the two replacement stores?

Bryan, I don't have that list in front of this morning. Bryan Hunt – Wachovia: Okay. And I had the luxury of driving by your headquarters not long ago and noticed you all have begun clearing the site next to your current distribution center for expansion. Could you give us a timeline and maybe either cost of one, expanding your distribution center, and how many stores you will be able to service once it is complete.

Well, we needed to do the site work on that site for a number of different reasons, but we have no set timeframe for any building on that and no cost estimate that we're able to share with you.

We currently have no questions in the queue. I will turn the conference back over to our host for any closing or additional remarks.

Thank you very much. We appreciate everyone joining us today and we look forward to speaking with you again soon. Have a good day.

And that does conclude our conference.