The Great Atlantic & Pacific Tea Company, inc. Announces Results for 2003 Fourth Quarter and Full Year

Sales for the 13-week fourth quarter were $2.7 billion, compared with $2.4 billion in the 12-week fourth quarter of fiscal 2002. Comparable store sales increased 1.5% vs. year-ago, based on a comparable 12-week period. The loss for the fourth quarter was $1.48 per share, compared with a loss of $0.54 in the prior year.

Focusing on continuing operations, during the fourth quarter, the Company recorded a charge of $39 million related to the previously announced restructuring effort in the Farmer Jack operations. Excluding this charge, results from continuing operations for the quarter were a pretax loss of $29 million or $0.55 per share as compared to a pretax loss of $33 million or $1.01 per share for the same period of the prior year. EBITDA for the fourth quarter of fiscal 2003, based on earnings from continuing operations excluding adjustments (“ongoing operating earnings”), was $45 million compared to $44 million in the prior year's fourth quarter. Reconciliation of ongoing operating earnings for the fourth quarters of fiscal years 2003 and 2002 to reported earnings could be found on schedules 2 and 4 of this release.

The current quarter’s results from discontinued operations of $.07 per share include an after tax gain of $3 million primarily from favorable asset disposals of certain Kohl’s stores closed earlier this year.

Sales for the 53 weeks were $10.8 billion versus $10.1 billion in the 52-week fiscal year 2002. Comparable store sales increased .9%, based on a comparable 52-week year. The net loss per share was $3.78 for fiscal 2003, compared with a loss of $5.03 for 2002. Excluding certain nonrecurring adjustments as detailed on Schedules 3 and 5, the ongoing operating loss per share was $3.02 for 2003 compared with a loss of $2.34 per share last year.

EBITDA for 2003, based on ongoing operating earnings as shown on Schedule 5 of this release, was $191 million compared to $236 million in the prior year.

Christian Haub, Chairman of the Board, President and Chief Executive Officer, said, “Although we were unprofitable in the fourth quarter and full year, I am encouraged by the positive direction we have established. Our Canadian operations delivered another solid and profitable performance despite challenging economic circumstances in Ontario. And while our recovery in the U.S. remains a work in progress, we are encouraged by the gradual operating improvement that built as the year progressed.

“In fiscal 2003, we took decisive actions to strengthen our financial position, halt the decline of our U.S. business, and maintain our success in Canada. The accomplishment of those objectives enabled us to enter fiscal 2004 with turnaround and growth strategies that will be supported by increased investment in our operations.

“For the immediate future, our outlook is conservative in light of the work that remains in turning around our business. However, we are fully confident that with our people and strategies, we will lead A&P to our goal of sustainable profitability.”

“At this time, I wish to thank the management and associates of our Corporate organization, A&P U.S. and A&P Canada, for the dedication and hard work that enabled us to accomplish our critical objectives in fiscal 2003, and position us for the next phase of our recovery.”

Founded in 1859, A&P, one of the nation’s first supermarket chains, is today among North America’s largest. The Company operates 633 stores in 10 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, Sav-A-Center, Dominion, The Barn Markets, Food Basics and Ultra Food & Drug. The Company invites investors to listen to an audio Webcast of its quarterly discussion of earnings by accessing a link on the “Investor Relations” page of its Website, www.aptea.com. The live broadcast is on Friday, April 30, 2004 at 11:30 AM Eastern Time, with replays available from the afternoon of April 30 through May 14.

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 measures “ongoing operating earnings” and “ongoing operating loss” to reflect what the Company’s earnings would have been excluding certain identified major items, which we believe are of a non-operating or one-time nature. These items are reconciled to reported earnings on Schedules 4 and 5 of this release. We use the non-GAAP measure “EBITDA” to reflect a measure that we believe is of interest to investors. EBITDA is reconciled to Net Cash provided by Operating Activities on Schedules 4 and 5 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
Vice President, Treasurer
(201) 571-4019

Press Contact: Richard P. De Santa
Vice President, Corporate Affairs
(201) 571-4495