MONTVALE, N.J.-(Business Wire)- May 24, 2002
The Great Atlantic & Pacific Tea Company, Inc.
(A&P, NYSE: GAP) announced that it would file a Form 12b-25 with the Securities and Exchange Commission to delay filing its Form 10-K for the 52 weeks ended February 23, 2002. The delay results from the Company's recent commencement of a review of certain actions in certain of its regions relating to the appropriate timing for the recognition of vendor allowances and the accounting for inventory. While the Company's review has not been completed and the Company cannot be certain of its eventual outcome with regard to amounts or periods affected, management currently believes that a charge will result. A substantial portion of such charge will reverse credits which were recognized prematurely as reductions of cost of merchandise sold. That portion will therefore be recognized in periods subsequent to fiscal 2001 as reductions of cost of merchandise sold. As stated above, the ultimate determination of amounts and related accounting periods will be affected by the outcome of the Company's review.

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. The Company assumes no obligation to update this information. 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 contact William Moss
Vice President, Treasurer
(201) 571-4019

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