Jun 17, 2004 12:14 PM, from staff and wire reports

Military Resale Group, a specialty food and grocery distributor to military commissaries, reported that gross revenues increased 21.4% to $2,134,976 for the first quarter 2004 over gross revenues of $1,758,963 for first-quarter 2003. Gross profit for the 2004 quarter rose by $105,778, or approximately 42.9%, to $352,415.

“As forecast, first-quarter 2004 marks the first time since management took the company public in 2001 that we’ve posted an operating profit for the quarter,” said Ethan Hokit, president of Military Resale Group. “Our gross profit margin increased approximately 2.5% for first-quarter 2004 to 16.5%, just shy of the 17% goal we had set at the beginning of first quarter.”

Military Resale Group’s increase in gross revenues was largely due to the addition of a frozen chicken line supplied by Tyson Foods Inc and a frozen vegetable line produced by VIP Sales Co Inc during December 2003 and January 2004.