A&P ANNOUNCES THIRD QUARTER RESULTS: STRONG RECOVERY IN U.S. OPERATIONS AND DIFFICULTY IN CANADA.

MONTVALE, N.J.--(BUSINESS WIRE)--DECEMBER 15, 1994--The Great Atlantic & Pacific Tea Company, Inc. today announced results for its third quarter ending December 3, 1994.

In the company's U.S. operations, third quarter identical store sales increased 1.7% and third quarter earnings were up 93% from $.18 per share in 1993 to $.35 per share this year. For the year-to-date, U.S. earnings were up 40% from $.91 per share to $1.27 per share.

In Canada, the company announced on December 6, 1994, after-tax non-recurring charges of $160 million or $4.19 per share including a write-off of goodwill, previously recognized tax benefits and certain long-lived assets. In addition, the company reported it would record in its third quarter results, a charge of $25 million or $.66 per share, representing the costs associated with three employee buy-outs negotiated with its Canadian labor unions. The company expects that these buy-outs will result in substantial cost savings in future years.

James Wood, chairman and chief executive officer said, "A&P's Canadian operations, Ontario's most profitable and fastest growing chain until 1990, has since suffered severe erosion due to competition's more favorable union contracts. This disparity has been eliminated and the company is now well placed to regain its growth and profitability," he said.

Canadian operations reported pre-tax losses, before the effect of the aforementioned third quarter charges, of $13.3 million, 12% greater that the same quarter last year. Third quarter 1994 reported results were further affected by the company's decision to no longer record future tax benefit on current results in conjunction with the aforementioned write-off of previously recognized deferred tax benefit.

On a consolidated basis, for the third quarter the company recorded a net loss of $185,665,000 or $4.86 per share on sales of $2,345,597,000 as compared with earnings of $379,000 or $.01 per share on sales of $2,342,935,000 for the third quarter of 1993.

For the 40 weeks year-to-date, the company recorded a net loss of $177,313,000 or $4.64 per share which included a cumulative net charge of $4.9 million or $.13 per share to reflect the adoption of FASB #112 "Employer Accounting for Postemployment Benefits" on sales of $7,961,870,000 compared with net earnings of $23,386,000 or $.61 per share on sales of $8,021,567,000 for the 40 weeks of 1993.

During the 40 weeks, the company opened 15 new stores, remodeled or expanded 44 stores and closed 77 stores. A&P operates 1,111 stores in 23 eastern states and Ontario, Canada under the A&P, Waldbaum's, Food Emporium, Super Fresh, Farmer Jack, Kohl's, Dominion and Miracle Food Mart trade names. -0-

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


             12 WKS ENDED  12 WKS ENDED  40 WKS ENDED  40 WKS ENDED
             DEC. 3, 1994  DEC. 4, 1993  DEC. 3, 1994  DEC. 4, 1993

SALES         $2,345,597    $2,342,935    $7,961,870    $8,021,567

GROSS
MARGIN          $670,572      $665,579    $2,264,127    $2,297,226

GROSS
MARGIN
RATE               28.59%        28.41%       28.44%        28.64%

INCOME FROM
OPERATIONS
BEFORE UNUSUAL
AND NON-RECURRING
ITEMS            $24,432       $13,386      $82,078       $85,169

CANADIAN
EMPLOYEE
BUY-OUT
COSTS           ($25,000)                  ($25,000)

NON-RECURRING
CANADIAN RELATED
WRITE-OFF ANNOUNCED
DECEMBER 6,
1994           ($160,000)                 ($160,000)

CUMULATIVE EFFECT
ON PRIOR YEARS
OF CHANGE IN
ACCOUNTING PRINCIPLE:
POSTEMPLOYMENT BENEFITS
- SFAS #112           $0                    ($4,950)

NET INCOME
(LOSS)         ($185,665)        $379     ($177,313)     $23,386


PER SHARE AMOUNTS:

CANADIAN EMPLOYEE
BUY-OUT
COSTS             ($0.66)                   ($0.66)

NON-RECURRING CANADIAN
RELATED WRITE-OFF
ANNOUNCED DECEMBER 6,
 1994             ($4.19)                   ($4.19)

CUMULATIVE EFFECT ON PRIOR
YEARS OF CHANGE IN
ACCOUNTING PRINCIPLE:
POSTEMPLOYMENT BENEFITS -
SFAS #112          $0.00                    ($0.13)

NET INCOME (LOSS)
PER SHARE         ($4.86)      $0.01        ($4.64)       $0.61

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            1,111        1,191

-0-
          THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
                    THIRD QUARTER EARNINGS
                         ( UNAUDITED )
       (In thousands, except share amounts and store data)

            12 WKS ENDED   12 WKS ENDED  40 WKS ENDED  40 WKS ENDED
            DEC. 3, 1994   DEC. 4, 1993  DEC. 3, 1994  DEC. 4, 1993

SALES        $2,345,597     $2,342,935    $7,961,870    $8,021,567

COST OF
MERCHANDISE
SOLD         (1,675,025)    (1,677,356)  (5,697,743)    (5,724,341)

GROSS
MARGIN          670,572        665,579    2,264,127      2,297,226

STORE
OPERATING,
GENERAL AND
ADMINISTRATIVE
EXPENSE        (646,140)     (652,193)  (2,182,049)     (2,212,057)

CANADIAN
EMPLOYEE
BUY-OUT
COSTS           (25,000)            0      (25,000)              0

WRITE-OFF
CANADIAN
GOODWILL AND
LONG-LIVED
ASSETS         (144,000)            0     (144,000)              0

INCOME (LOSS)
FROM
OPERATIONS     (144,568)       13,386      (86,922)         85,169

INTEREST
EXPENSE         (17,272)     (12,754)      (54,166)        (46,230)

INCOME (LOSS)
BEFORE INCOME
TAXES AND
CUMULATIVE
EFFECT         (161,840)         632      (141,088)         38,939

PROVISION FOR
INCOME
TAXES           (23,825)        (253)      (31,275)        (15,553)

INCOME (LOSS)
BEFORE
CUMULATIVE
EFFECT         (185,665)         379      (172,363)         23,386

CUMULATIVE
EFFECT ON
PRIOR YEARS
OF CHANGE IN
ACCOUNTING
PRINCIPLE:
POSTEMPLOYMENT
BENEFITS -
SFAS #112             0            0       (4,950)               0

NET INCOME
(LOSS)        ($185,665)        $379     ($177,313)         $23,386

PER SHARE
AMOUNTS:
INCOME (LOSS)
BEFORE
CUMULATIVE
EFFECT           ($4.86)       $0.01       ($4.51)            $0.61

CUMULATIVE
EFFECT ON
PRIOR YEARS
OF CHANGE IN
ACCOUNTING
PRINCIPLE:
POSTEMPLOYMENT
BENEFITS -
SFAS #112         0.00         0.00        (0.13)             0.00

NET INCOME
(LOSS) PER
SHARE           ($4.86)        $0.01       ($4.64)            $0.61

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            1,111         1,191

CONTACT: The Great Atlantic & Pacific Tea Company

             Michael J. Rourke
             Senior Vice President
             Communications and Corporate Affairs
             201-930-4236