The Great Atlantic & Pacific Tea Company, Inc. Announces Results For Third Quarter Ended December 3, 2005

MONTVALE, NJ - January 6, 2006 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP) announced unaudited fiscal 2005 third quarter and year to date results for the 12 and 40 weeks ended December 3, 2005.

For the third quarter, U.S. sales were $1.58 billion, compared with $1.67 billion in the third quarter of fiscal 2004. Fiscal 2004 third quarter total sales of $2.52 billion include $850 million related to A&P Canada which was sold in August 2005. U.S. total comparable store sales increased 1.8% vs. year-ago. Excluding New Orleans, U.S. comparable store sales decreased 0.3% vs. year-ago. Net loss for the quarter was $71 million or $1.74 per diluted share this year versus a loss of $75 million or $1.96 per diluted share last year.

Reported EBITDA for the third quarter was negative $35 million this year versus a positive $16 million for the third quarter of fiscal 2004. EBITDA for both quarters includes items the Company considers non-operating in nature that management excludes when evaluating the results of the U.S. on-going business. The current quarter includes a $2 million benefit related to the Visa/Mastercard lawsuit settlement, charges of $19 million related to Midwest operations exit costs, net charges of $15 million in restructuring costs relating to the cost reduction initiatives within administration and supply and logistics, charges of $8 million related to impairment charges on long-lived assets, charges of $13 million related to store closures in New Orleans as a result of Hurricane Katrina, charges of $3 million related to early extinguishment of debt and write off of deferred financing fees for the prior credit facility and $4 million of real estate related losses. Fiscal 2004 third quarter results include $27 million from A&P Canada, $9 million in one-time savings in employee benefit costs, charges of $35 million related to impairment on long-lived assets, $1 million in net restructuring costs and $2 million of real estate related losses.

For the 40 weeks year to date, U.S. sales were $5.41 billion versus $5.61 billion in fiscal 2004. Total sales of $7.13 billion for the 40 weeks year to date and $8.29 billion in fiscal 2004 include $1.72 billion and $2.68 billion in sales, respectively, related to A&P Canada which was sold in August 2005. U.S. total comparable store sales were unchanged from last year. Excluding New Orleans, U.S. comparable store sales decreased 0.6% vs. year-ago. Net income for the 40 weeks year to date was $432 million or $10.62 per diluted share which included the gain on the sale of Canada, compared with a loss of $182 million or $4.74 per diluted share for fiscal 2004.

Reported EBITDA for the 40 weeks year to date and fiscal 2004 was negative $101 million and positive $120 million, respectively. EBITDA for the 40 weeks year to date includes $68 million from A&P Canada, a $2 million benefit related to the Visa/Mastercard settlement, $22 million of real estate related gains, charges of $105 million related to Midwest operations exit costs, $89 million in net restructuring costs, charges of $18 million related to impairment charges on long-lived assets, charges of $18 million related to Hurricane Katrina, charges of $15 million related to the Canadian hedging agreement and charges of $33 million for early extinguishment of debt and write off of deferred financing fees related to the prior credit facility. EBITDA for fiscal 2004 includes $64 million from A&P Canada, $9 million in one-time savings in employee benefit costs, charges of $35 million related to impairment on long-lived assets, $2 million in net restructuring costs and $1 million of real estate related losses.

Christian Haub, Executive Chairman, said, "I am very encouraged by the progress generated by our new management team in both reducing costs and improving sales trends, especially through the latter stages of the third quarter. Accordingly, our results, excluding special items, were significantly improved, a positive sign that we are on track to achieve our profitability objectives as planned."

Eric Claus, President & Chief Executive Officer, said "I'm very proud of our team's execution of key cost management, operating and selling strategies in the third quarter. Our store level initiatives are clearly resonating with customers, resulting in improved sales. These positive outcomes at such an early stage of our rebuilding process bode well for the achievement of ongoing sales momentum, and progress toward overall profitability by fiscal 2007.

"Going forward, we plan to continue to improve operating results by further reducing costs, while marketing aggressively and investing to bring our store facilities to new quality standards both on the fresh and discount sides." Mr. Claus said.

Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 407 stores in 9 states and the District of Columbia under the following trade names: A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Sav-A-Center and Food Basics.

The Company invites investors and other interested parties to listen to a live audio Webcast to be held at 11:00 AM Eastern Time today, at which members of the Company's senior management team will discuss the Company's third quarter financial results. The Webcast may be accessed through a link on the "Investors" page of the Company's Website, www.aptea.com. Listeners who cannot participate in the live broadcast will be able to hear a recorded replay of the broadcast beginning this afternoon and available until February 3, 2006.

Effective March 28, 2003, the Securities and Exchange Commission ("SEC") adopted new rules related to disclosure of certain financial measures not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"). Such new rules require all public companies to provide certain disclosures in press release and SEC filings related to non-GAAP financial measures. We use the non-GAAP measure "EBITDA" to evaluate the Company's liquidity and it is among the primary measures used by management for planning and forecasting of future periods. EBITDA is defined as earnings before interest, taxes, depreciation, amortization, minority interest, equity in earnings of Metro, Inc., discontinued operations and the gain on the sale of A&P Canada. The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by the Company's management and makes it easier to compare the Company's results with other companies that have different financing and capital structures or tax rates. In addition, this measure is also among the primary measures used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the results of the Company to other companies in its industry. EBITDA is reconciled to Net Cash provided by Operating Activities on Schedule 1 of this release.

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 currently available to it. The Company assumes no obligation to update 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.

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Investor Contact:
William J. Moss
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(201) 571-4019

Press Contact:
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