The Great Atlantic & Pacific Tea Company, Inc. Announces Results For Second Quarter Ended September 10, 2005

MONTVALE, NJ - October 18, 2005 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP) announced unaudited fiscal 2005 second quarter and year to date results for the 12 and 28 weeks ended September 10, 2005.

Sales for the second quarter were $2.2 billion, compared with $2.5 billion in the second quarter of fiscal 2004. Comparable store sales in the U.S. declined 1.1% vs. year-ago. Because of the impact of Hurricane Katrina, comparable store sales for the quarter and year to date exclude the sales of the New Orleans business. Net income for the quarter was $592 million or $14.40 per diluted share this year versus a loss of $1.67 per diluted share last year.

The current quarter's results include a gain of $919 million that relates to the sale of A&P Canada less charges totaling $152 million for certain items that the Company believes are of a non-operating nature. These items include $71 million related to Midwest exit costs, $29 million related to early extinguishment of debt, $25 million in restructuring costs including the sale of the distribution operations to C&S, $12 million related to the Canadian hedging agreement, $10 million related to impairment charges on long-lived assets and $5 million related to Hurricane Katrina. Last year's results include a one time charge of $25 million related to the Canadian Food Basics settlement. Excluding these non-operating items and the gain on the sale of A&P Canada, EBITDA for the quarter was $53 million as compared to $48 million for the same period last year. EBITDA for the Company's Canadian business, sold in August 2005, was $17 million for its results for an 8 week period in the current quarter versus $26 million for 12 weeks last year.

Sales for the 28 weeks year to date were $5.6 billion versus $5.8 billion in fiscal year 2004. For the first half of the year, U.S. comparable store sales, excluding New Orleans, declined 0.7%. Net income for year to date 2005 was $503 million or $12.47 per diluted share, compared with a loss of $2.78 per diluted share for 2004.

Excluding previously announced non-operating items and the gain on the sale of A&P Canada, EBITDA for the first half of fiscal years 2005 and 2004 was $155 million and $129 million, respectively. This includes $74 million of EBITDA for the 24 weeks results of the Company's Canadian business this year versus $70 million for a 28 week period last year.

Christian Haub, Executive Chairman of the Board, said, "We made major progress during the quarter in restructuring the company and forming the basis for a new and sustainable A&P. Proceeds from the sale of A&P Canada completed during the quarter are being utilized to strengthen our balance sheet and improve our stores; and our investment position and relationship with METRO, Inc. in Canada is generating income and other benefits that we believe have significant upside potential going forward.

"In addition, the previously announced transfer of distribution operations to C&S Wholesale Grocers proceeded, as we substantially reduce costs, improve supply chain performance, and focus management and other resources strictly on our retail business.

"Overall, our substantially improved balance sheet and lower cost structure now positions us to restore profitability to our business, and to consider strategic opportunities that are emerging in our industry," Mr. Haub said.

Eric Claus, President & Chief Executive Officer, said, "Our actions in the first half set the stage for a leaner, more efficient and effective company going forward. And we continue to move aggressively to reduce costs and improve productivity. As the second half progresses, these actions will enable a retail strategy that positions our conventional, fresh and discount store formats to not only build our own loyal customer base, but also attract new customers. It is the effective execution of these actions that will continue A&P's turnaround to creating sustained profitability."

Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 417 stores in 10 states 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 10:00 AM Eastern Time today, at which members of the Company's senior management team will discuss the Company's second 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 November 15, 2005.

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, 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
Vice President, Treasurer
(201) 571-4019

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