A&P ANNOUNCES SECOND QUARTER EARNINGS.

MONTVALE, N.J.--(BUSINESS WIRE)--September 26, 1995--The Great Atlantic & Pacific Tea Company, Inc. announced today that earnings for the second quarter ended September 9, 1995 were $9,384,000 or $.25 per share on sales of $2,341,171,000 compared with the prior year's second quarter of $6,057,000 or $.16 per share on sales of $2,390,914,000.

For the 28 weeks year-to-date, earnings were $23,934,000 or $.63 per share on sales of $5,476,685,000, compared with earnings of $13,302,000 or $.35 per share on sales of $5,616,273,000, before a cumulative net charge of $4,950,000 or $.13 per share to reflect the adoption of FASB No.112 - "Employers' Accounting for Postemployment Benefits," in the 1994 period.

James Wood, chairman and chief executive officer said, "Second quarter sales were softer because of sluggish consumer spending and low levels of retail food inflation. Overall, our comparable store sales were down one-half of 1% compared to last year.

"We have continued to implement our store format restructuring program in Canada and sales and profitability have improved appreciably there during this repositioning period," he said.

The company operated 1,063 stores at the end of the quarter. It opened 18 new stores, remodeled or expanded 9 existing stores, and closed 63 stores during the first 28 weeks of 1995. -0-

              THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
                         SECOND QUARTER EARNINGS
                             ( UNAUDITED )
          (In thousands, except share amounts and store data)

               12 WKS ENDED   12 WKS ENDED   28 WKS ENDED   28 WKS ENDED
               SEPT 9, 1995   SEPT 10, 1994  SEPT 9, 1995   SEPT 10, 1994

SALES            $2,341,171     $2,390,914     $5,476,685     $5,616,273

GROSS MARGIN     $  669,103     $  680,911     $1,578,915     $1,593,555

GROSS MARGIN RATE     28.58%         28.48%         28.83%         28.37%

INCOME FROM
 OPERATIONS      $   29,861     $   25,868     $   76,745     $   57,646

INCOME BEFORE
 CUMULATIVE
 EFFECT          $    9,384     $    6,057     $   23,934     $   13,302

CUMULATIVE EFFECT ON PRIOR YEARS
 OF CHANGE IN ACCOUNTING PRINCIPLE:
   POSTEMPLOYMENT BENEFITS - SFAS No. 112
                 $        0     $        0     $        0    ($    4,950)

NET INCOME       $    9,384     $    6,057     $   23,934     $    8,352

PER SHARE AMOUNTS:
 INCOME BEFORE
 CUMULATIVE
 EFFECT          $     0.25     $     0.16      $    0.63     $     0.35

CUMULATIVE EFFECT ON PRIOR YEARS
 OF CHANGE IN ACCOUNTING PRINCIPLE:
  POSTEMPLOYMENT BENEFITS - SFAS No. 112
                 $     0.00     $     0.00      $    0.00    ($     0.13)

NET INCOME
 PER SHARE       $     0.25     $     0.16      $    0.63     $     0.22

WEIGHTED AVERAGE NUMBER
 OF COMMON SHARES OUTSTANDING
                 38,220,000     38,220,000     38,220,000     38,220,000

NUMBER OF STORES OPERATED
 AT END OF QUARTER
                      1,063          1,123

-0-

            THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
                      SECOND QUARTER EARNINGS
                           ( UNAUDITED )
        (In thousands, except share amounts and store data)

                12 WKS ENDED   12 WKS ENDED   28 WKS ENDED   28 WKS ENDED
                SEPT 9, 1995   SEPT 10, 1994  SEPT 9, 1995   SEPT 10, 1994

SALES             $2,341,171     $2,390,914     $5,476,685     $5,616,273

COST OF MERCHANDISE SOLD
                  (1,672,068)    (1,710,003)    (3,897,770)    (4,022,718)

GROSS MARGIN         669,103        680,911      1,578,915      1,593,555

STORE OPERATING, GENERAL AND
 ADMINISTRATIVE EXPENSE
                    (639,242)      (655,043)    (1,502,170)    (1,535,909)

INCOME FROM OPERATIONS
                      29,861         25,868         76,745         57,646

INTEREST EXPENSE     (16,006)       (16,418)       (38,352)       (36,894)

INCOME BEFORE INCOME TAXES
 AND CUMULATIVE EFFECT
                      13,855          9,450         38,393         20,752

PROVISION FOR INCOME TAXES
                      (4,471)        (3,393)       (14,459)        (7,450)

INCOME BEFORE CUMULATIVE EFFECT
                       9,384          6,057         23,934         13,302

CUMULATIVE EFFECT ON PRIOR YEARS
 OF CHANGE IN ACCOUNTING PRINCIPLE:
 POSTEMPLOYMENT BENEFITS - SFAS No.112
                           0              0              0         (4,950)

NET INCOME        $    9,384     $    6,057     $   23,934     $    8,352

PER SHARE AMOUNTS:
  INCOME BEFORE CUMULATIVE EFFECT
                  $     0.25     $     0.16     $     0.63     $     0.35

CUMULATIVE EFFECT ON PRIOR YEARS
 OF CHANGE IN ACCOUNTING PRINCIPLE:
 POSTEMPLOYMENT BENEFITS - SFAS No. 112
                        0.00           0.00           0.00          (0.13)

NET INCOME PER SHARE
                  $     0.25      $    0.16     $     0.63     $     0.22

WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING
                  38,220,000     38,220,000     38,220,000     38,220,000

NUMBER OF STORES OPERATED
 AT END OF QUARTER     1,063          1,123

CONTACT: Michael J. Rourke

A & P

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