Fourth quarter earnings from ongoing operations $.20 per share, compared with loss of $.28 last year. Full year Earnings $.02 per share, versus prior year loss of $.65.

MONTVALE, NJ - April 4, 2002 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE:GAP) announced unaudited fiscal 2001 fourth quarter and annual results for the 12 and 52 weeks ended February 23, 2002.

Sales for the fourth quarter of fiscal 2001 were $2.5 billion, compared with $2.6 billion in fiscal 2000; comparable store sales increased 0.5%. Excluding the charges arising from the Company's previously announced asset disposition program, an extraordinary charge for the repurchase of debt and a non-recurring gain from the demutualization of The Prudential Insurance Company, earnings per share in the fourth quarter of 2001 were $.20, compared with a loss of $.28 in fiscal 2000. Including the aforementioned items, net income for the fourth quarter of 2001 was $.49 per share.

During the fourth quarter, the Company recorded an extraordinary after tax charge of $7.2 million or $.18 per share for the cost of repurchasing $178 million of its 7.70% Senior Notes and $20 million of its 7.75% Notes. Also included in the Company's reported fourth quarter 2001 results are pre-tax costs of $28.6 million ($16.6 million after tax or $.42 per share) relating to its asset disposition program, and a non-recurring pre-tax gain of $60.6 million ($35.1 million after tax or $.89 per share) from proceeds received as a result of the demutualization of The Prudential Insurance Company.

For the 52 week year, sales were $11.0 billion, compared with $10.6 billion in fiscal 2000. Comparable store sales increased by 2.6%. Excluding charges from the asset disposition program and repurchase of debt, and the non-recurring gain, results for fiscal 2001 were a profit of $.02 per share, versus a loss of $.65 per share for the 52 weeks of fiscal 2000. Including the aforementioned items, results for the 52 weeks of 2001 were a loss of $2.18.

Christian Haub, Chairman of the Board and Chief Executive Officer, said: "I am pleased with A&P's solid progress in the fourth quarter and the whole of fiscal 2001, as we achieved operating profitability while again improving our sales and market share. Through improved operating fundamentals and cost control, we increased gross margins and lowered expense rates throughout the year. We also realized benefits from our ongoing supply chain and business process initiative. In addition, we reduced net debt by $234 million over the course of the year from inventory reductions and asset management initiatives."

Elizabeth R. Culligan, President and Chief Operating Officer, said: "We acted decisively in fiscal 2001 to review and improve our store network in terms of overall quality and growth potential. That effort, and the initial results of ongoing programs to upgrade our operating disciplines and merchandising execution, were major factors in our performance improvement."

On November 14, 2001, the Company announced a program to improve operating results by disposing of underperforming assets which included 39 stores. As a result of this program, the Company expects to incur costs and accrue charges totaling in the range of $115 million to $125 million after tax, in order to write down fixed assets, close stores, incur restructuring costs, and accrue for future occupancy expenses. Approximately $100 million of the costs will be non-cash or deferred payout. During the 12 and 52 weeks ended February 23, 2002, the Company incurred after tax charges of $16.6 million or $.42 per share, and $112.3 million or $2.88 per share, respectively. The Company expects to incur the majority of the remaining costs in the first two quarters of fiscal 2002.

Early in fiscal 2000, the Company announced a multi-year project of strategic initiatives to improve its supply chain and business systems and processes. For the 12 and 52 weeks ended February 23, 2002, the cost associated with these initiatives was $.30 and $1.46 per share, respectively. (See the attached schedules for a breakout of these costs, as well as the costs of the asset disposition program, for fiscal 2001 and 2000)

Mr. Haub concluded: "With five consecutive quarters of improved operating results, A&P's turnaround is well underway. I thank all of our associates for their dedication and hard work in support of our objectives. We remain focused on the key strategies that generated our momentum in fiscal 2001, and are poised to drive our improvement to the next level in the year ahead."

Founded in 1859, A&P was one of the nation's first supermarket chains, and is today one of North America's 10 largest. The Company operates more than 700 stores in 15 states, the District of Columbia and Ontario, Canada under the following trade names: A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Kohl's, Sav-A-Center, Dominion, The Barn Markets and Food Basics. The Company invites investors to listen to an audio Webcast of its quarterly discussion of earnings by accessing a link on the "News and Events" page of its Website, www.aptea.com. The live broadcast is at 11 AM Eastern Time, Thursday, April 4, 2002, with replays available from the afternoon of April 4 through May 3.

This release contains forward-looking statements about the future performance of the Company, which are based on Management's assumptions and beliefs in light of the information contained herein. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited to: competitive practices and pricing in the food industry generally and particularly in the Company's principal markets; the Company's relationships with its employees and the terms of future collective bargaining agreements; the costs and other effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry; changes in the financial markets which may affect the Company's cost of capital and the ability of the Company to access capital; supply or quality control problems with the Company's vendors; and changes in economic conditions which affect the buying patterns of the Company's customers.

For financial questions, call William Moss
Vice President, Treasurer
(201) 571-4019
For non-financial questions, call Rick De Santa
Vice President, Corporate Affairs (201) 571-4495

Schedule 1 - Reported Earnings for the Fourth Quarter and 52 Weeks (Unaudited) (In thousands, except share amounts and store data) PDF - 9k

Schedule 2 - 4th Quarter Earnings (Unaudited) (In thousands, except share amounts and store data) PDF - 10k

Schedule 3 - 52 Week Earnings (Unaudited) (In thousands, except share amounts and store data) PDF - 10k

Schedule 4 - Detail of Adjustments to Earnings as Reported (Unaudited) (In millions, except per share amounts) PDF - 9k

Schedule 5 - Condensed Balance Sheet Data (Unaudited) (In millions, except per share and store data) PDF - 5k

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