A&P in Negotiations for Sale Of Sav-A-Center Operations

A&P said that based on current discussions, it is optimistic that the Sav-A-Center operations can be sold to a single buyer committed to the continuity of the business going forward. However, there is no guarantee that a transaction will be consummated and A&P does not intend to dispose of the assets unless the terms and conditions are reasonable to the company, shareholders and its employees. The Company said its decision to exit the market is consistent with its strategy to focus resources on the development and expansion of its core Northeast operations.

Eric Claus, A&P President and Chief Executive Officer, said, "We're proud of what we have achieved at Sav-A-Center over the past two years, as the first major retailer to reopen the majority of stores after Hurricane Katrina, and in supporting our people, our business and the community since that time.

"Thanks to the dedicated efforts of our management and associates, we have rebuilt and revitalized Sav-A-Center, which is now a solid operation positioned to thrive under new ownership committed to long-term growth," Mr. Claus said.

The Company has retained William Blair & Company LLC as financial advisor in connection with this sale.

Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 406 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.

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.

###

Investor Contact:
William J. Moss
Vice President, Treasurer
(201) 571-4019

Press contact:
Richard P. De Santa
Senior Director, Communications
(201) 571-4495