A&P Announces Fourth Quarter Earnings.

MONTVALE, N.J.--(BUSINESS WIRE)--March 10, 1997--The Great Atlantic & Pacific Tea Company, Inc. today reported net earnings (unaudited) for the fourth quarter ended February 22, 1997 of $23,068,000 or $.60 per share, compared to $19,055,000 or $.50 per share from operations last year. The 1995 fourth quarter results benefitted from a $6,500,000 or $.17 per share refund of previously paid taxes in Canada, resulting in $.67 per share net income in the fourth quarter of last year. Sales for the quarter were $2,347,711,000 compared to $2,331,074,000 last year. Comparable store sales declined 1.9% compared to last year's fourth quarter.

For the 1996 fiscal year ended February 22, 1997, the company recorded net income of $73,032,000 or $1.91 per share on sales of $10,089,014,000 compared to net income of $57,224,000 or $1.50 per share on sales of $10,101,356,000 in fiscal 1995. On an operating basis, earnings were $1.91 per share in 1996 vs. $1.33 in 1995, an increase of 44%.

James Wood, chairman and chief executive officer said, "1996 was a great year for the company with the resurgence of our Canadian business and the continuation of our success in Michigan, resulting in a bottom line improvement of nearly 45%. The 1996 fourth quarter did not receive the favorable sales impact caused by the adverse weather conditions of the previous winter, but nevertheless, a significant bottom line improvement was achieved."

The company operated 973 stores at the end of the fiscal year and served 49 franchised stores. It opened 30 new stores, remodeled or expanded 72 existing stores and closed 71 stores during fiscal 1996, including 23 stores which have reopened as Food Basics franchised stores. -0-

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

                12 WKS ENDED   12 WKS ENDED   52 WKS ENDED   52 WKS ENDED
                FEB. 22, 1997  FEB. 24, 1996  FEB. 22, 1997  FEB. 24, 1996

SALES             $2,347,711    $2,331,074     $10,089,014    $10,101,356

GROSS MARGIN         693,900       690,201       2,921,699      2,935,237

GROSS MARGIN RATE      29.56%        29.61%         28.96%          29.06%

INCOME FROM
OPERATIONS            47,609        45,754        169,303         151,734

NET INCOME           $23,068       $25,555        $73,032         $57,224

NET INCOME PER SHARE   $0.60         $0.67          $1.91           $1.50

WEIGHTED AVERAGE
NUMBER OF COMMON
& COMMON
EQUIVALENT SHARES
OUTSTANDING       38,307,647    38,220,458     38,287,589      38,221,707

NUMBER OF STORES
OPERATED AT END OF
QUARTER                  973         1,014            973         1,014

NUMBER OF
FRANCHISED STORES
SERVED AT END OF QUARTER  49             -             49             -

-0-

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

                12 WKS ENDED   12 WKS ENDED   52 WKS ENDED   52 WKS ENDED
                FEB. 22, 1997  FEB. 24, 1996  FEB. 22, 1997  FEB. 24, 1996

SALES             $2,347,711    $2,331,074     $10,089,014    $10,101,356

COST OF
MERCHANDISE SOLD  (1,653,811)   (1,640,873)    (7,167,315)   (7,166,119)

GROSS MARGIN         693,900       690,201      2,921,699     2,935,237

STORE OPERATING,
GENERAL AND
ADMINISTRATIVE
EXPENSE             (646,291)     (644,447)    (2,752,396)   (2,783,503)

INCOME FROM
OPERATIONS            47,609        45,754        169,303       151,734

INTEREST EXPENSE,
NET                  (15,908)      (15,361)       (68,712)      (70,642)

INCOME BEFORE
INCOME TAXES          31,701        30,393        100,591        81,092

PROVISION FOR
INCOME TAXES          (8,633)       (4,838)       (27,559)      (23,868)

NET INCOME           $23,068       $25,555        $73,032       $57,224

NET INCOME PER SHARE   $0.60         $0.67          $1.91         $1.50

WEIGHTED AVERAGE
NUMBER OF COMMON
& COMMON
EQUIVALENT SHARES
OUTSTANDING       38,307,647    38,220,458     38,287,589    38,221,707

NUMBER OF STORES
OPERATED AT END OF
QUARTER                  973         1,014            973         1,014

NUMBER OF
FRANCHISED STORES
SERVED AT END OF QUARTER  49             -             49             -

CONTACT: The Great Atlantic & Pacific Tea Company

Michael J. Rourke

Senior Vice President

Communications and Corporate Affairs

201/930-4236