|                                                            |   |                       |        |
|-----------------------------------------------------------------|--------|----------------------------|-------------|
|                                                            |   | FISCAL YEAR ENDED          |        |
|                                                            |   | MAY 29, 2010(52Weeks) |        |   | MAY 30, 2009(52Weeks) |   |   | MAY 312008(52Weeks) |   |   | JUNE 2 2007(52Weeks) |   |   | JUNE 3 2006(53Weeks) |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |
| NET SALES                                                       |   | $                          | 32,938      |   |   | $ | 34,421 |   |   | $ | 34,492 |   |   | $ | 33,783 |   |   | $ | 33,280 |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST AND EXPENSES:                                              |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                              |   |                       | 25,049      |   |   |   | 25,971 |   |   |   | 26,265 |   |   |   | 25,766 |   |   |   | 25,234 |   |
| Operating, general and   administrative expenses |   |                       |  8,396 |   |   |   |  8,441 |   |   |   |  8,172 |   |   |   |  8,001 |   |   |   |  8,262 |   |
| Interest expense                                                |   |                       | 62          |   |   |   | 47 |   |   |   | 60 |   |   |   | 61 |   |   |   | 60 |   |
| Other income, net                                               |   |                       |  (91   | ) |   |   |  (99 | ) |   |   |  (138 | ) |   |   |  (143 | ) |   |   |  (109) |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                           |   |                       | 33,416      |   |   |   | 34,360 |   |   |   | 34,359 |   |   |   | 33,685 |   |   |   | 33,447 |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                               |   |                       | (478        | ) |   |   | 61 |   |   |   | 133 |   |   |   | 98 |   |   |   |  (167) |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES:                                                   |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                                                         |   |                       | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| State                                                           |   |                       | —     |   |   |   | — |   |   |   |  — |   |   |   |  — |   |   |   |  — |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                           |   |                       | —     |   |   |   |  — |   |   |   |  — |   |   |   |  — |   |   |   |  — |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                               |   | $                          | (478        | ) |   | $ | 61 |   |   | $ | 133 |   |   | $ | 98 |   |   | $ | (167) |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PER SHARE AMOUNTS:                                              |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                               |   | $                          | (.63        | ) |   | $ | .08 |   |   | $ | .17 |   |   | $ | .12 |   |   | $ | (.21) |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends                                                  |   | $                          | —     |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER   OF SHARES OUTSTANDING  |   |                       |  759   |   |   |   |  777 |   |   |   |  784 |   |   |   |  791 |   |   |   |  800 |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                    |   | $                          | 4,238       |   |   | $ | 4,331 |   |   | $ | 3,807 |   |   | $ | 3,724 |   |   | $ | 3,512 |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT                                                  |   | $                          | 330         |   |   | $ | 449 |   |   | $ | 184 |   |   | $ | 212 |   |   | $ | 223 |   |
|                                                            |   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                       | Bid Prices | Asked Prices  |  Dividends |
|----------------------------|------------|--------------------|-----------------|
|                       | High       | Low                | High            | Low |  Per Share |
| 2010                       |       |               |            |   |   |
|   First Quarter  | $0.66      | $0.65              | $5.00           | $1.05 | None |
|   Second Quarter | $0.69      | $0.66              | $7.00           | $2.00 | None |
|   Third Quarter  | $0.68      | $0.66              | $5.00           | $2.00 | None |
|   Fourth Quarter | $0.69      | $0.67              | $2.00           | $2.00 | None |
|                       |       |               |            |   |   |
| 2009                       |       |               |            |   |   |
|   First Quarter  | $1.15      | $1.15              | $2.00           | $1.60 | None |
|   Second Quarter | $1.15      | $1.15              | $1.60           | $1.60 | None |
|   Third Quarter  | $1.15      | $0.65              | $1.60           | $1.05 | None |
|   Fourth Quarter | $0.80      | $0.65              | $1.05           | $1.05 | None |

|   | Automated Trading Desk Fincl Svcs            |  (843) 789-2065       |
|--------|---------------------------------------------------|----------------------------|
|   | Carr Securities Corporation             |  (516) 944-8300       |
|   | Domestic Securities, Inc.                    |  (732) 661-0300       |
|   | Knight Equity Markets, LP     |  (212) 336-8792       |
|   | Monroe Securities, Inc.                 |   (800) 766-5560 |
|   | UBS Securities, LLC                     |  (203) 719-8710       |

----

|                                            | FISCAL YEAR ENDED |        |
|-------------------------------------------------|-------------------|-------------|
|                                            |              | May 29,2010 |   |   | May 30,2009 |   |
| Sales                                           |              | $           | 32,937,845 |   |   | $ | 34,421,326 |   |
| % Sales Increase (Decrease)                     |              |        |     (4.31) | % |   |   |  (0.21) | % |
| Gross Margin %                                  |              |        | 23.95 | % |   |   |  24.55 | % |
| Operating, General and Administrative Expenses: |              |        |   |   |   |   |   |   |
|   Amount                              |              | $           | 8,396,033 |   |   | $ | 8,440,715 |   |
|   % of Sales                          |              |        | 25.49 | % |   |   | 24.52 | % |
| Net Income (Loss)                               |              | $           | (478,284) |   |   | $ | 60,614 |   |

----

----

----

|  Product Class        | Fiscal 2010(52 Weeks)             | Fiscal 2009(52 Weeks)             |
|----------------------------|-----------------------------------|-----------------------------------|
| Grocery and Non-Food Items | $21,113,424                       | $22,219,238                       |
| Meat and Deli              |     9,199,863 |     9,503,268 |
| Produce                    |     2,624,558 |     2,698,820 |

----

|    Expense Item            |   Fiscal2010 Amount                    |   % of Fiscal2010 Total |   Fiscal2009 Amount                     |   % of Fiscal2009 Total |
|-------------------------------------------|--------------------------------------------------|-----------------------------------|---------------------------------------------------|-----------------------------------|
| Payroll                                   | $4,256,997                                       |   50.7                  | $4,215,786                                        |   50.0                  |
| Utilities and telephone expense           |      816,846            |     9.7       |      868,350             |   10.3                  |
| Rent                                      |      672,490            |     8.1       |      670,050             |     7.9       |
| Insurance                                 |      597,040            |     7.1       |      602,800             |     7.1       |
| Advertising and promotion                 |      496,493            |     5.9       |      513,092             |     6.1       |
| General and office supplies               |      358,045            |     4.3       |      403,790             |     4.8       |
| Repairs and maintenance                   |      302,147            |     3.6       |      318,481             |     3.8       |
| Depreciation                              |      127,563            |     1.5       |      131,332             |     1.6       |
| Bank service charges and credit card fees |      130,364            |     1.6       |      138,700             |     1.6       |
| Bad checks                                |        61,279 |     0.7       |      113,202             |     1.3       |
| Professional fees                         |      253,376            |     3.0       |      226,228             |     2.7       |
| Flood loss                                |        96,390 |     1.1       |        — |    —         |
| All other miscellaneous                   |      227,003            |     2.7       |      238,904             |     2.8       |
| TOTAL                                     | $8,396,033                                       | 100.0                             | $8,440,715                                        | 100.0                             |

----

----

----

| Description                                                                                                                                                     | 2010 Amount                          | 2009 Amount                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|--------------------------------------------|
| Check cashing fees                                                                                                                                              | $55,088                              |   $62,035                        |
| Funds received for handling money orders                                                                                                                        |     4,755        |       3,897  |
| Vendor’s compensation from the States of   Alabama and Georgia for collecting and   remitting sales taxes on a timely basis |      14,123 |       14,924 |
| Returned check fees                                                                                                                                             |      6,140  |      5,793        |
| Revenue related to Fed-Ex shipments/other                                                                                                                       |     2,684        |      1,741        |
| TOTAL                                                                                                                                                           | $82,790                              | $88,390                                    |

----

----

----

----

----

|                       |    | May 29,2010                 | May 30,2009    |
|----------------------------|---------|----------------------------------|-------------------------------|
|                       |    |                             |                          |    |
|  Matthew Richardson   |  $ |   541                  |                          |  $ |  510 |   |
|  Line of Credit  |    |     800,000  |                          |   |    596,150 |   |
|  Total           |  $ |   $  800,541 |                          |  $ |  $  596,660 |   |

|   |   Year |      Amount   |
|--------|-------------|--------------------------------------------------|
|   |   2011 | $107,537                                         |
|   |   2012 |   103,746                              |
|   |   2013 |     75,120                   |
|   |   2014 |    43,601                         |
|   |   2015 | —                                          |

----

----

----

----

----

----

|                                          |                                                                                                       |                                                                                                       |
|-----------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|                                          |                                                                                                       |                                                                                                       |
|                                          |           2010        |          2009         |
| NET SALES                                     | $ 32,937,845                                                                                          | $ 34,421,326                                                                                          |
|                                          |                                                                                                       |                                                                                                       |
| COST OF GOODS SOLD                            |    25,048,904                                                                               |    25,971,302                                                                               |
|                                          |                                                                                                       |                                                                                                       |
| Gross profit                                  |      7,888,941                                                                    |     8,450,024                                                                          |
|                                          |                                                                                                       |                                                                                                       |
| OPERATING, GENERAL ANDADMINISTRATIVE EXPENSES |       8,396,033                                                              |      8,440,715                                                                    |
|                                          |                                                                                                       |                                                                                                       |
| Operating income (loss)                       |    (507,092)                                                                                |            9,309                                    |
|                                          |                                                                                                       |                                                                                                       |
| OTHER INCOME (EXPENSE)                        |                                                                                                       |                                                                                                       |
| Interest income                               |             7,863                              |       10,445                                                                 |
| Interest expense                              |           (61,845)                                       |       (47,530)                                                               |
| Other income                                  |           82,790                                         |       88,390                                                                 |
|                                          |                                                                                                       |                                                                                                       |
|                                          |           28,808                                         |       51,305                                                                 |
|                                          |                                                                                                       |                                                                                                       |
| Income (loss) before income taxes             |         (478,284)                                                  |       60,614                                                                 |
|                                          |                                                                                                       |                                                                                                       |
| FEDERAL AND STATE INCOMETAXES                 |  -                                                                                                    | -                                                                                                          |
|                                          |                                                                                                       |                                                                                                       |
| NET INCOME (LOSS)                             | $    (478,284)                                                                              | $      60,614                                                                |
|                                          |                                                                                                       |                                                                                                       |
| INCOME (LOSS) PER SHARE                       | $             (.63)                       | $            .08                               |
|                                          |                                                                                                       |                                                                                                       |
| WEIGHTED AVERAGE NUMBEROF SHARES OUTSTANDING  |        759,017                                                          |        777,469                                                          |

----

|                                   |                                                 |                                             |
|----------------------------------------|------------------------------------------------------|--------------------------------------------------|
|                                   |                                                 |                                             |
|                                   |         2010 |        2009   |
|                                   |                                                 |                                             |
| ASSETS                                 |                                                 |                                             |
|                                   |                                                 |                                             |
| CURRENT ASSETS                         |                                                 |                                             |
| Cash and cash equivalents              | $   824,443                           | $   971,416                       |
| Certificate of deposit                 |      316,552                |     307,375                  |
| Accounts receivable                    |      117,137                |     122,646                  |
| Inventories                            |   2,407,785                                |   2,283,909                            |
| Prepaid expenses                       |        50,433     |        33,513 |
|                                   |                                                 |                                             |
| Total current assets                   |   3,716,350                                |   3,718,859                            |
|                                   |                                                 |                                             |
|                                   |                                                 |                                             |
|                                   |                                                 |                                             |
|                                   |                                                 |                                             |
|                                   |                                                 |                                             |
|                                   |                                                 |                                             |
|                                   |                                                 |                                             |
| PROPERTY AND EQUIPMENT – at cost |                                                 |                                             |
| Leasehold improvements                 |     314,556                      |     303,766                  |
| Furniture, fixtures and equipment      |    3,067,580                          |    3,112,606                      |
|                                   |                                                 |                                             |
|                                   |   3,382,136                                |   3,416,372                            |
| Less accumulated depreciation          |   (2,860,964)                              |   (2,804,322)                          |
|                                   |                                                 |                                             |
|                                   |      521,172                |    612,050                             |
|                                   |                                                 |                                             |
|                                   | $  4,237,522                               | $  4,330,909                           |

----

|   |
|--------|

|                                                                                                                                    |                                                                                     |                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                                                                    |                                                                                     |                                                                                     |
|                                                                                                                                    |         2010       |         2009       |
|                                                                                                                                    |                                                                                     |                                                                                     |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                              |                                                                                     |                                                                                     |
|                                                                                                                                    |                                                                                     |                                                                                     |
| CURRENT LIABILITIES                                                                                                                     |                                                                                     |                                                                                     |
| Accounts payableBook overdraft                                                                                                          | $   776,479     714,206                          | $  766,878      394,631                               |
| Short-term borrowings                                                                                                                   |      800,541                                                    |       596,660                                              |
| Current maturities of long-term debt                                                                                                    |      107,537                                                    |      117,774                                                    |
| Accrued sales tax                                                                                                                       |        86,088                                         |        94,446                                         |
| Other                                                                                                                                   |      245,199                                                    |      247,845                                                    |
|                                                                                                                                    |                                                                                     |                                                                                     |
| Total current liabilities                                                                                                               |   2,730,050                                                                    |   2,218,234                                                                    |
|                                                                                                                                    |                                                                                     |                                                                                     |
|                                                                                                                                    |                                                                                     |                                                                                     |
| LONG-TERM DEBT                                                                                                                          |     222,467                                                          |      331,285                                                    |
|                                                                                                                                    |                                                                                     |                                                                                     |
| STOCKHOLDERS’ EQUITY                                                                                                              |                                                                                     |                                                                                     |
| Nonvoting preferred stock – authorized 5,000,000shares of no par value; no shares issued                                          |      -                                                          |      -                                                          |
| Nonvoting common stock – $.10 par value; authorized5,000,000 shares; no shares issued                                             |      -                                                          |      -                                                          |
| Common stock – $.10 par value; authorized 5,000,000 shares;   shares issued of 749,475 in 2010 and 767,576 in 2009 |        74,948                                         |        76,758                                         |
| Additional paid-in capital                                                                                                              |     625,003                                                          |      640,098                                                    |
| Retained earnings                                                                                                                       |     585,054                                                          |   1,064,534                                                                    |
|                                                                                                                                    |                                                                                     |                                                                                     |
|                                                                                                                                    |   1,285,005                                                                    |    1,781,390                                                              |
|                                                                                                                                    |                                                                                     |                                                                                     |
|                                                                                                                                    | $ 4,237,522                                                                              | $ 4,330,909                                                                         |

----

|                       |                                                |                                             |                                             |                                              |                                                                          |
|----------------------------|-----------------------------------------------------|--------------------------------------------------|--------------------------------------------------|---------------------------------------------------|-------------------------------------------------------------------------------|
|                       |                                                |                                             |                                             |                                              |                                                                          |
|                       |  Shares ofCommon   Stock   |   Common   Stock   |  AdditionalPaid-inCapital    |   Retained  Earnings     |         Total     |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Balance, May 31, 2008      | 781,779                                             | $78,178                                          | $651,942                                         | $1,004,859                                        | $1,734,979                                                                    |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Net income for year        |   -                                       |   -                                    |   -                                    |        60,614  |       60,614                                    |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Redemption of common stock | (14,203)                                            |     (1,420)                  |      (11,844)           |      (939)               |      (14,203)                                        |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Balance, May 30, 2009      | 767,576                                             |    76,758                         |    640,098                        |   1,064,534                             |  1,781,390                                                               |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Net loss for year          |   -                                       |   -                                    |   -                                    |    (478,284)                       |    (478,284)                                                   |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Redemption of common stock | (18,101)                                            |      (1,810)            |      (15,095)           |        (1,196) |      (18,101)                                        |
|                       |                                                |                                             |                                             |                                              |                                                                          |
| Balance, May 29, 2010      | 749,475                                             |   $74,948                              |   $625,003                             | $    585,054                  | $1,285,005                                                                    |
|                       |                                                |                                             |                                             |                                              |                                                                          |

----

|   |
|--------|

|                                                              |          2010       |       2009       |
|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
|                                                              |                                                                                           |                                                                         |
| CASH FLOWS FROM OPERATING ACTIVITIES                              |                                                                                           |                                                                         |
| Net income (loss)                                                 | $(478,284)                                                                                     | $    60,614                                              |
| Adjustments to reconcile net income (loss) to net cash            |                                                                                           |                                                                         |
| provided by (used in) operating activities:                       |                                                                                           |                                                                         |
| Depreciation and amortization                                     |   127,563                                                                            |      131,332                                        |
| Loss on sale of property and equipment                            |          134                                      |          2,044                  |
| Change in operating assets and liabilities:                       |                                                                                           |                                                                         |
| Accounts receivable                                               |       5,509                                                      |          (4,312)                |
| Inventories                                                       |   (123,876)                                                                          |        (42,239)                           |
| Prepaid expenses                                                  |     (16,920)                                                               |        36,981                             |
| Accounts payable and accrued liabilities                          |       (1,403)                                                    |      (117,013)                                      |
| Book overdraft                                                    |   319,575                                                                            |      155,699                                        |
|                                                              |                                                                                           |                                                                         |
| Net cash provided by (used in) operating activities               |    (167,702)                                                                         |       223,106                                  |
|                                                              |                                                                                           |                                                                         |
| CASH FLOWS FROM INVESTING ACTIVITIES                              |                                                                                           |                                                                         |
| Purchase of certificate of deposit                                |    (316,552)                                                                    |     (307,375)                                            |
| Proceeds from maturity of certificate of deposit                  |    307,375                                                                      |     311,884                                              |
| Purchase of property and equipment                                |     (36,819)                                                               |     (422,248)                                            |
| Proceeds from disposal of property and equipment                  |        —                          |             100  |
|                                                              |                                                                                           |                                                                         |
| Net cash used in investing activities                             |     (45,996)                                                               |     (417,639)                                            |
|                                                              |                                                                                           |                                                                         |
| CASH FLOWS FROM FINANCING ACTIVITIES                              |                                                                                           |                                                                         |
| Net increase in short-term borrowings                             |    203,881                                                                      |     173,840                                              |
| Proceeds from long-term debt                                      |   —                                                                            |     344,410                                              |
| Principal payments on long-term debt                              |    (119,055)                                                                    |       (79,538)                                 |
| Redemption of common stock                                        |      (18,101)                                                         |       (14,203)                                 |
|                                                              |                                                                                           |                                                                         |
| Net cash provided by financing activities                         |      66,725                                                           |     424,509                                              |
|                                                              |                                                                                           |                                                                         |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS              |    (146,973)                                                                    |     229,976                                         |
| CASH AND CASH EQUIVALENTS, beginning of year                      |    971,416                                                                      |     741,440                                              |
|                                                              |                                                                                           |                                                                         |
| CASH AND CASH EQUIVALENTS, end of year                            | $ 824,443                                                                                      | $  971,416                                                         |
|                                                              |                                                                                           |                                                                         |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW   INFORMATION |                                                                                           |                                                                         |
|   Cash paid during the year for:                        |                                                                                           |                                                                         |
|   Income taxes                                          | $      —                               | $      —             |
|   Interest                                              |      62,255                                                           |      45,585                                         |

----

|   |
|--------|

| Note 1. | Nature of Business and Summary of Significant Accounting Policies |
|---------|-------------------------------------------------------------------|

|   | Nature of business:The Company is engaged in a single line of business, the operation of a chain of retail grocery stores.  The stores are located in Georgia, Tennessee, and Alabama and operate under the name of Shop-Rite Supermarket.Fiscal year:The Company’s fiscal year ends on the Saturday nearest May 31.  The last two fiscal years consist of the 52-week periods ended May 29, 2010 and May 30, 2009.Use of estimates:The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.Cash and cash equivalents:For purposes of reporting cash flows, the Company considers all highly-liquid debt instruments with an original maturity of three months or less to be cash equivalents.Accounts receivable:The Company extends unsecured credit for 30-day terms to selected customers in the ordinary course of business, but mitigates the associated credit risk by carefully screening applicants and actively pursuing past due accounts.  An allowance for doubtful accounts has not been established since management is of the opinion that all accounts receivable at year-end are fully collectible.Inventories:All inventories are valued at the lower of average cost or market, following the Average Cost-to-Retail Method.  Under this method, inventory is stated at average cost, which is determined by applying an average cost-to-retail ratio to each similar merchandise category’s ending retail value.  If average cost is determined to exceed market value, the impacted merchandise’s carrying value is reduced to market value, with the reduction flowing through current period earnings.  The Company recognizes inventory shortages throughout the year based on actual physical counts.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |
|--------|

| Note 1. | Nature of Business and Summary of Significant Accounting Policies (continued) |
|---------|-------------------------------------------------------------------------------|

|   | Vendor allowances:The Company receives funds for a variety of merchandising activities from vendors whose products the Company buys for resale in its stores.  These incentives and allowances include volume or purchased based incentives, advertising allowances, and promotional discounts.  The purpose of these incentives and allowances is generally to aid in the reduction of the costs incurred by the Company for stocking, advertising, promoting and selling the vendor’s products.  These allowances generally relate to short-term arrangements with vendors, often relating to a period of one month or less, and are typically negotiated on a purchase-by-purchase basis.  Due to system constraints and the nature of certain allowances, these allowances are applied as a reduction of inventory costs using a rational and systematic methodology, which results in the recognition of these incentives when the inventory related to the initial purchase is sold.  Amounts that represent a reimbursement of specific identifiable incremental costs, such as advertising, are recorded as a reduction to the related expense in the period that the related expense is incurred.Property and equipment:Expenditures for property and equipment are charged to asset accounts at cost.  Depreciation is provided on the straight-line and declining-balance methods at rates based upon the estimated useful lives of the various classes of depreciable property.  Repairs and maintenance are expensed as incurred.  Depreciation expense included in the statements of income was $127,563 and $131,332 in 2010 and 2009, respectively.Revenue recognition:The financial statements of the Company are prepared under the accrual method of accounting.  The Company recognizes income on the sale of all grocery and non-food merchandise at the point-of-sale.  Discounts provided by vendors, usually in the form of paper coupons, are not recognized as a reduction in sales.  Sales taxes are not recorded as a component of sales.Advertising costs:Advertising costs are charged to operations when incurred.  Advertising costs charged to operations were $496,493 and $513,092 in 2010 and 2009, respectively.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1. | Nature of Business and Summary of Significant Accounting Policies (continued) |
|---------|-------------------------------------------------------------------------------|

|   | Deferred income taxes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The Company accounts for income taxes in accordance with the income tax guidance in Accounting Standards Codification (ASC) Topic 740, which requires that deferred income taxes be determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities given the provisions of the enacted tax laws.  Valuation allowances are used to reduce deferred tax assets to the amount considered likely to be realized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Recent accounting pronouncements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Effective for the Company on August 30, 2009, the Financial Accounting Standards Board (FASB) Accounting Standards Codification became the officially recognized source of authoritative U.S. generally accepted accounting principles (GAAP or U.S. GAAP) applicable to all public and non-public, non-governmental entities, superseding existing FASB, AICPA, EITF and related literature.  Rules and interpretive releases of the SEC under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants.  All other accounting literature is considered non-authoritative.  The switch to the ASC affects the way companies refer to U.S. GAAP in financial statements and accounting policies.  The Codification is not intended to change U.S. GAAP, but rather is expected to simplify accounting research by reorganizing current GAAP into approximately 90 accounting topics.                                                                    |
|   | ASC Topic 820, “Fair Value Measurements and Disclosures”, defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.  New authoritative accounting guidance under ASC Topic 820 affirms that the objective of fair value when the market for an asset is not active is the price that would be received to sell the asset in an orderly transaction, and clarifies and includes additional factors for determining whether there has been a significant decrease in market activity for an asset when the market for that asset is not active. ASC Topic 820 requires an entity to base its conclusion about whether a transaction was not orderly on the weight of the evidence. The new accounting guidance amended prior guidance to expand certain disclosure requirements.  The adoption of this new guidance did not have a significant impact on the Company’s financial statements. |

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|--------|

| Note 1. | Nature of Business and Summary of Significant Accounting Policies (continued) |
|---------|-------------------------------------------------------------------------------|

|   | Recent accounting pronouncements: (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Further new authoritative accounting guidance, Accounting Standards Update No. 2009-5, provides guidance for measuring the fair value of a liability in circumstances in which a quoted price in an active market for the identical liability is not available. In such instances, a reporting entity is required to measure fair value utilizing a valuation technique that uses (i) the quoted price of the identical liability when traded as an asset, (ii) quoted prices for similar liabilities or similar liabilities when traded as assets, or (iii) another valuation technique that is consistent with the existing principles of ASC Topic 820, such as an income approach or market approach. The new authoritative accounting guidance also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The forgoing new authoritative accounting guidance under ASC Topic 820 became effective for the quarter ended November 28, 2009, and did not have a significant impact on the Company’s financial statements.  |
|   | ASC Topic 855, “Subsequent Events”, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company adopted the provisions of ASC Topic 855 during the quarter ended August 29, 2009.  The adoption of ASC Topic 855 did not have a significant impact on our financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its financial statements or do not apply to its operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Subsequent events:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The Company has evaluated subsequent events for potential recognition and/or disclosures in the financial statements and accompanying notes included in this Annual Report on Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| Note 2. | Short-Term Borrowings |
|---------|-----------------------|

|   | The Company has a line-of-credit agreement with a bank totaling $800,000 at May 29, 2010 and May 30, 2009.  The interest rate on amounts outstanding under the line-of-credit agreement is based on prime subject to a 6.00% floor.  This agreement is scheduled to mature on May 20, 2011. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 2. | Short-Term Borrowings (continued) |
|---------|-----------------------------------|

|   | The line-of-credit is secured by the Company’s certificate of deposit, as well as by a security interest in substantially all of its accounts receivable, inventory, machines and equipment, furniture and fixtures and by personal guarantee of Paul R. Cook, the Company’s Chairman of the Board, Chief Executive Officer and Chief Financial Officer.At May 29, 2010 and May 30, 2009, the Company has short-term borrowings consisting of an unsecured note payable to Matthew Richardson, son of principal shareholder Diana Richardson.  The note provides for interest at .25% below the bank's base rate and is payable on demand.A summary of short-term borrowings for the fiscal years ended May 29, 2010 and May 30, 2009, is as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   |   |   |   |  2010 |      |       |  2009 |   |
|----------------------------------------------------|--------|--------|--------|--------|------------|-----------|------------|------------|--------|
|                                               |   |   |   |   |       |      |       |       |   |
| Line-of-credit agreements                     |   |   |   |   | $          | 800,000   |       |       | $      | 596,150 |   |
| Loan payable to related party                      |   |   |   |   |       |  541 |       |       |   |  510 |   |
|     Total outstanding          |   |   |   |   |       | $         | 800,541    |       |   | $ | 596,660 |   |
| Weighted average interest rate at year end    |   |   |   |   |       |      |  6.00 | %          |   |   |  6.00 | % |
| Weighted average interest rate during year    |   |   |   |   |       |      |  6.00 | %          |   |   |  6.00 | % |
| Maximum amount outstanding during year        |   |   |   |   |       | $    | 800,541    |       |   | $ | 811,779 |   |
| Average amount outstanding during year   |   |   |   |   |       | $         | 593,100    |       |   | $ | 435,200 |   |

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|   |
|--------|

| Note 3. | Long-Term Debt |
|---------|----------------|

|   | Long-term debt consists of the following notes payable at May 29, 2010 and May 30, 2009:  |
|--------|------------------------------------------------------------------------------------------------|

|   |        2010                                                                                                                                                                          |        2009                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                        |                                                                                              |
|   | Note payable to Gateway Bank & Trust; principaland interest due in monthly installments of $3,684,through April 2012; interest at prime rate with 6.00%floor; collateralized by equipment, inventory, andpersonal guarantee of the Company’s CEO/CFO                                                              |     $  73,882                                                       |     $112,316 |
|   |                                                                                                                                                                                                                                                                                                                        |                                                                                              |
|   | Six notes payable to Gateway Bank & Trust; principaland interest due in monthly installmentsaggregating $6,685; interestat prime rate plus 0.5% with 6.00% floor,and maturities ranging from August 2013through March 2014; collateralized byequipment, inventory and personal guaranteeof the Company’s CEO/CFO. |          256,122                                     |          318,672 |
|   |                                                                                                                                                                                                                                                                                                                        |                                                                                              |
|   | Three vehicle installment loans; principaland interest due in monthly installmentsaggregating $1,591; with maturitiesranging from January 2010 through July 2010;collateralized by automobiles*                                                                                                                             |           —      |         18,071 |
|   |                                                                                                                                                                                                                                                                                                                        |                                                                                              |
|   |   330,004                                                                                                                                                                                                                                                                                                         |   449,059                                                                               |
|   | Less current maturities                                                                                                                                                                                                                                                                                                     |   107,537                                                                               |   117,774 |
|   |                                                                                                                                                                                                                                                                                                                        |                                                                                              |
|   | Total long-term debt                                                                                                                                                                                                                                                                                                        | $222,467                                                                                          | $331,285 |

|   |   |  Year  |   |   Amount        |   |
|--------|--------|------------------|--------|---------------------------|--------|
|   |   |  2011       |   | $ 107,537                 |   |
|   |   |  2012       |   |  103,746             |   |
|   |   |  2013       |   |  75,120              |   |
|   |   |  2014       |   |  43,601              |   |
|   |   |  2015       |   |  —   |   |
|   |   |  Total      |   | $ 330,004                 |   |

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|   |
|--------|

| Note 4. | Lease Commitments |
|---------|-------------------|

|   | The Company leases the facilities in which its retail grocery operations are located under noncancelable operating leases that expire at various dates through December 2014.  Substantially all of the leases include renewal options.  The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of May 29, 2010: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FiscalYear Ending             | Minimum    Rentals     |
|--------|-------------------------------|----------------------------------------------------------------|
|   |                          |
|   | 2011                          | $   653,251                                     |
|   | 2012                          |      616,934                          |
|   | 2013                          |      385,826                          |
|   | 2014                          |      204,281                          |
|   | 2015                          |        26,238               |
|   |                          |
|   |     Total | $1,886,530                                                     |

|   | Rental expense for the fiscal years ended May 29, 2010 and May 30, 2009, is as follows: |
|--------|-----------------------------------------------------------------------------------------|

|   |                                    |    |  2010    |    |   2009 |
|--------|-----------------------------------------|---------|---------------|---------|------------------|
|   |  Minimum rentals              |  $ |  653,251 |  $ |  646,690    |
|   |  Contingent rentals based on sales |    |  17,810  |    |  21,938     |
|   |                                    |    |          |    |             |
|   |  Total                   |  $ |  671,061 |  $ |  668,628    |

| Note 5. | Federal and State Income Taxes |
|---------|--------------------------------|

|   | No amounts have been provided for current and deferred federal and state tax expense in the statements of income for the years ended May 29, 2010 and May 30, 2009, as a result of recurring net operating losses and the related full valuation allowance on the Company’s net deferred tax assets. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|--------|

| Note 5. | Federal and State Income Taxes (continued)  A reconciliation of income tax expense computed by applying the U.S. Federal statutory rates to income before income taxes and actual income tax expense is as follows:  |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                       |  2010 |  2009                                                           |
|--------|----------------------------------------------------------------------------|------------|----------------------------------------------------------------------|
|   |  Federal income tax expense (benefit) computed at the statutory rates |       |  $  (71,700)                                          |  $  9,100 |
|   | State income tax (benefit), net of federal income tax expense (benefit)    |       |     (26,400)                                     |      3,300 |
|   | Change in deferred tax asset valuationallowance                            |       |     98,100                                       |    (12,400) |
|   |                                                                       |       |                                                                 |
|   | Total income tax expense                                                   |       | $     —      | $     —      |

|   |                                                    |    |  2010          |    |   2009    |
|--------|---------------------------------------------------------|---------|---------------------|---------|---------------------|
|   |   Deferred tax assets:                             |    |                |    |                |
|   | Net operating loss carryforward          | $       |  (193,400)     | $  |  (97,400)      |
|   | Other                                                   |    | (8,500)             |    |  (11,200)      |
|   |                                                    |    |                |    |                |
|   | Deferred tax liabilities:                               |    |                |    |                |
|   | Depreciable basis of property and equipment   |    | 10,800         |    | 15,600         |
|   | Deferred tax asset valuation allowance                  |    | 191,100        |    | 93,000         |
|   |                                                    | $  |   — | $  |  —  |

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|   |
|--------|

| Note 5. | Federal and State Income Taxes (continued) |
|---------|--------------------------------------------|

|   | ASC Topic 740, “Income Taxes”, clarifies the accounting for uncertainty in tax positions and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  ASC Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  During the fiscal years ended May 29, 2010 and May 30, 2009, the Company recognized no interest and penalties assessed by taxing authorities on any underpayment of income tax.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 6. | Employee Benefit Plan |
|---------|-----------------------|

|   | The Company has a 401(k) employee benefit plan covering substantially all employees who have met minimum service and age requirements.  The Company's annual contribution is discretionary.  The Company's contribution to the plan was $7,500 in 2010 and 2009.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 7. | Concentration of Credit Risk and Major Supplier |
|---------|-------------------------------------------------|

|   | The Company maintains a certificate of deposit and other deposit accounts at financial institutions in amounts that exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit.  The total of deposits that exceeded the FDIC insurance limit was $305,988 at May 29, 2010.  The Company believes that maintaining deposits in these financial institutions does not represent a significant credit risk and that the Company benefits from favorable banking relationships as a result of maintaining deposits with these institutions.Approximately 82 percent of the Company’s purchased merchandise for the year ended May 29, 2010, was procured from the Company’s main supplier.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 8. | Related Party Transactions |
|---------|----------------------------|

|   | As described in greater detail in Note 2 above, the Company finances a portion of its working capital requirements through borrowings consisting of an unsecured note, payable to Matthew Richardson the son of principal stockholder Diana Richardson.  The note bears interest at a rate per annum .25% below the base rate of interest charged on the Company’s borrowings from its lead bank and is payable on demand. Diana Richardson was retained in January 2010 as an advertising consultant at a rate of $700 per month.  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|--------|

| Note 9. | Segment Reporting |
|---------|-------------------|

|   | ASC Topic 280, “Segment Reporting” provides for the identification of reportable segments on the basis of discrete business units and their financial information to the extent such units are reviewed by an entity’s chief decision maker (which can be an individual or group of management persons).  ASC Topic 280 permits aggregation or combination of segments that have similar characteristics.  In the Company’s operations, each store is viewed by management as being a separately identifiable business or segment from the perspective of monitoring performance and allocation of financial resources.  Although the stores operate independently and are managed and monitored separately, each is substantially similar in terms of business focus, type of customers, products and services.  Accordingly, the Company’s financial statements reflect the presentation of segment information on an aggregated basis in one reportable segment.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 10. | Fair Value Disclosures |
|----------|------------------------|

|   | The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  In accordance with the “Fair Value Measurements and Disclosures” ASC Topic 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Fair value is best determined based upon quoted market prices.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.ASC Topic 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction between market participants at the measurement date under current market conditions.  If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate.  In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment.  The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 10. | Fair Value Disclosures (continued) |
|----------|------------------------------------|

|   | ASC Topic 820 also establishes a three-tier fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, as follows:Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.The Company has no assets or liabilities whose fair values are measured using levels 1, 2 or 3 inputs.The carrying values of cash and cash equivalents, the certificate of deposit, accounts receivable, short-term borrowings, accounts payable, accrued expenses and other liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments.  Based on the borrowing rates available to the Company for long-term debt with similar terms and average maturities, the carrying amounts approximate the fair value of such financial instruments.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 11. | Quarterly Data (unaudited) |
|----------|----------------------------|

|                                          | Fiscal Years Ended                                                                                                        |
|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                          | May 29, 2010                                                                                                              |   | May 30, 2009 |
|                                          | ThirteenWeeks Ended     5/29/2010                                                           | ThirteenWeeks Ended   2/27/2010  | ThirteenWeeks Ended  11/28/2009  | ThirteenWeeks Ended   8/29/2009  |   | ThirteenWeeks Ended     5/30/2009  | ThirteenWeeks Ended   2/28/2009  | ThirteenWeeks Ended  11/29/2008  | ThirteenWeeks Ended   8/30/2008  |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Net sales                                     | $ 8,001,078                                                                                                               | $ 8,153,886 | $ 8,138,983 | $ 8,643,898 |   | $ 8,422,042 | $ 8,513,107 | $ 8,700,897 | $ 8,785,280 |
| Cost of goods sold                            |    6,117,524                                                                                               |    6,147,539 |    6,171,934 |    6,611,907 |   |    6,331,015 |    6,391,451 |    6,549,700 |    6,699,136 |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Gross profit                                  |    1,883,554                                                                                               |    2,006,347 |    1,967,049 |    2,031,991 |   |    2,091,027 |    2,121,656 |    2,151,197 |    2,086,144 |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Operating, general andadministrative expenses |     2,048,567                                                                                         |     2,124,801 |     2,162,198 |     2,060,467 |   |     2,075,591 |     2,123,307 |     2,132,687 |     2,109,130 |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Operating income (loss)                       |       (165,013)                                                                             |      (118,454) |       (195,149) |         (28,476) |   |        15,436 |          (1,651) |        18,510 |         (22,986) |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Other income                                  |        22,393                                                                          |        21,216 |        21,997 |         25,047 |   |        23,365 |        24,224 |        23,072 |         28,174 |
| Interest expense                              |        (17,520)                                                                        |        (15,934) |        (14,989) |         (13,402) |   |        (12,977) |        (15,239) |        (11,467) |           (7,847) |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes             |      (160,140)                                                                                   |       (113,172) |      (188,141) |           (16,831) |   |        25,824 |          7,334 |        30,115 |           (2,659) |
| Income taxes                                  |               -       |               -       |              -       |         - |   |                -       |              -      |                -       |                 -       |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Net income (loss)                             |   $ (160,140)                                                                                                   |   $   (113,172) |   $   (188,141) |   $      (16,831) |   | $     25,824 | $        7,334 | $      30,115 | $       (2,659) |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |
| Earnings per common share:                    |   $     (0.211)                                                                        |   $      (0.149) |   $       (0.248) |   $        (0.022) |   | $       0.034 | $        0.009 | $        0.039 | $       (0.003) |
|                                          |                                                                                                                      |   |   |   |   |   |   |   |   |

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