The Great Atlantic & Pacific Tea Co., Inc. Consummates Issuance of $165 Million 5.125% Convertible Senior Notes Due 2011, $255 Million 6.75% Convertible Senior Notes Due 2012, Share Lending Agreements and Convertible Note Hedge and Warrant Transactions

Montvale, NJ - December 19, 2007 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE: GAP) announces the consummation of its public offering yesterday of $165 million aggregate principal amount of convertible senior notes due 2011 and $255 million aggregate principal amount of convertible senior notes due 2012 (together, the "notes"). The principal amount of the notes issued reflects the full exercise of the underwriters' over-allotment options with respect to both series of notes. Banc of America Securities LLC and Lehman Brothers Inc. acted as joint book running managers for the offering.

As previously disclosed, the Company entered into convertible note hedge and warrant transactions with financial institutions that are affiliates of the underwriters of the notes to increase the effective conversion price of the notes. The Company had also entered into share lending agreements with affiliates of the underwriters to lend such affiliates up to 11,278,988 shares of the Company's common stock. Pursuant to these agreements, the Company loaned 8,134,002 shares of its common stock to these entities who then sold 6,300,752 of them to the public in a public offering which was consummated yesterday. The Company did not receive any proceeds from the sale of these shares, other than a nominal lending fee.

The net proceeds of the offering of the notes were used to prepay in full and terminate the Company's $370 bridge loan facility and pay a portion of the net costs of the convertible note hedge and warrant transactions.

UBS served as financial advisor to the Company in these financing transactions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 455 stores in 8 states and the District of Columbia under the following trade names: A&P, Pathmark, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh and Food Basics.

This news release contains forward-looking statements, including statements regarding the offerings, the use of the net proceeds from the offering and the effect of the note hedge and warrant transactions. These forward-looking statements involve risks and uncertainties, including that none of the proposed transactions will be completed. Factors that could cause actual events to differ materially from those predicted in such forward-looking statements include market conditions, potential fluctuations in the Company's stock price, or changes in U.S. generally accepted accounting principles or in their interpretation. For a discussion of certain of the risks, uncertainties and other factors affecting the statements contained in this news release, see the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and the Company's registration statement on Form S-3.

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