MONTVALE, NJ - February 25 - The Great Atlantic & Pacific Tea Company, Inc. (A&P) (NYSE-GAP) today announced an agreement to sell seven Kohl's supermarkets in Madison, Wisconsin to The Copps Corporation, a subsidiary of Roundy's, Inc. (Pewaukee, Wisconsin). Completion of the transaction is subject to customary conditions and reviews.

The Company, which currently operates 31 Kohl's stores in the Madison and Milwaukee markets, also announced that it is exploring the sale of the Milwaukee area stores. In addition, the Company announced that it is considering the sale of its Eight O'Clock coffee business.

Christian Haub, Chairman, President & Chief Executive Officer, said, "Today's announcements reflect our previously stated plan to reduce debt and lower operating costs. Although difficult, these actions are necessary to revitalize our U.S. business and ensure the long-term success of the Company as a whole."

A&P had previously announced the planned divestiture of operations in northern New England. The Company said that it does not foresee the sale of other parts of its business at this time.

Founded in 1859, A&P is one of the nation's first supermarket chains, and is today one of North America's largest. The Company currently operates approximately 690 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, Food Basics and Ultra Food & Drug. The Company also manufactures and distributes the Eight O'Clock line of whole bean coffees.

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