A&P announces first quarter earnings.

MONTVALE, N.J.--(BUSINESS WIRE)--July 1, 1996--The Great Atlantic & Pacific Tea Company, Inc. announced today that net income for the 16-week first quarter ended June 15, 1996 was $21,879,000 or $.57 per share compared with $14,550,000 or $.38 per share for the first quarter ended June 17, 1995, an increase of 50% over the prior year.

Sales for the quarter were $3,092,554,000 compared with $3,135,514,000 in the first quarter last year. Comparable store sales were down 0.4% as the company continued its new store development program in the U.S. and store restructuring in Canada.

James Wood, chairman and chief executive officer said, "We continued the strong profit recovery begun last year with further improvements in Canada and several U.S. operating groups, while keeping a tight rein on expenses. We now have 30 Food Basics stores successfully operating in Ontario, most of which are franchise stores converted from loss making conventional supermarkets."

The company operated 993 stores as of June 15, 1996 and served 24 franchise stores. It opened 13 new stores, remodeled or expanded 21 existing stores and closed 34 stores during the first quarter of 1996, including 12 stores which have already re-opened or will re-open later in the year as Food Basics franchised stores. -0-

              THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
                        FIRST QUARTER EARNINGS

                              ( UNAUDITED )
          (In thousands, except share amounts and store data)

                                   16 WEEKS ENDED    16 WEEKS ENDED
                                   JUNE 15, 1996     JUNE 17, 1995

SALES                              $3,092,554        $3,135,514

GROSS MARGIN                         $896,780          $909,812

GROSS MARGIN RATE                       29.00%            29.02%

INCOME FROM OPERATIONS                $52,743           $46,884

NET INCOME                            $21,879           $14,550

NET INCOME PER SHARE                    $0.57             $0.38

WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT SHARES
OUTSTANDING                        38,295,144        38,220,333

NUMBER OF STORES OPERATED
  AT END OF QUARTER                       993             1,082
-0-

             THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
                        FIRST QUARTER EARNINGS

                             ( UNAUDITED )

            (In thousands, except share amounts and store data)

                                       16 WEEKS ENDED   16 WEEKS ENDED
                                       JUNE 15, 1996    JUNE 17, 1995

SALES                                    $3,092,554      $3,135,514

COST OF MERCHANDISE SOLD                 (2,195,774)     (2,225,702)

GROSS MARGIN                                896,780         909,812

STORE OPERATING, GENERAL AND
   ADMINISTRATIVE EXPENSE                  (844,037)       (862,928)

INCOME FROM OPERATIONS                       52,743          46,884

INTEREST EXPENSE                            (20,771)        (22,346)

INCOME BEFORE INCOME TAXES                   31,972          24,538

PROVISION FOR INCOME TAXES                  (10,093)         (9,988)

NET INCOME                                  $21,879         $14,550

NET INCOME PER SHARE                          $0.57           $0.38

WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT SHARES
OUTSTANDING                              38,295,144      38,220,333

NUMBER OF STORES OPERATED
  AT END OF QUARTER                             993           1,082

CONTACT: The Great Atlantic & Pacific Tea Company Inc.

Michael Rourke, 201/930-4236