A&P announces second quarter earnings.

MONTVALE, N.J.--(BUSINESS WIRE)--Sept. 18, 1996--The Great Atlantic & Pacific Tea Company, Inc. announced today that earnings for the second quarter ended September 7, 1996 were $13,994,000 or $.37 per share on sales of $2,329,987,000 compared with earnings of $9,384,000 or $.25 per share on sales of $2,341,171,000 in the second quarter of 1995. Comparable store sales were even with last year which was an improvement over the first quarter of 1996.

For the 28 weeks year-to-date, earnings were $35,873,000 or $.94 per share on sales of $5,422,541,000 compared with earnings of $23,934,000 or $.63 per share on sales of $5,476,685,000 for the same period of 1995.

James Wood, chairman and chief executive officer said, "The company's revival in profitability continued to accelerate in the second quarter. The Canadian company turn around is being led by improvements in our Dominion upscale stores as well as the roll-out of the Food Basics format where we now have 45 stores. We are also seeing very positive customer response to our new generation of stores in the U.S., especially in New Jersey and the Metro New York market. New stores are also helping sales and profits in Michigan, Philadelphia, Baltimore, New England and New Orleans."

The company operated 977 stores at the end of the quarter and served 36 franchised stores. It opened 17 new stores, remodeled or expanded 48 existing stores and closed 53 stores during the first 28 weeks of 1996, including 20 stores, which have already re-opened or will re-open later as Food Basics franchised stores. -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. 7,1996  SEPT. 9,1995   SEPT. 7,1996  SEPT. 9,1995

SALES             $2,329,987    $2,341,171     $5,422,541    $5,476,685
COST OF
MERCHANDISE SOLD  (1,667,632)   (1,672,068)    (3,863,406)   (3,897,770)
GROSS MARGIN         662,355       669,103      1,559,135     1,578,915
STORE OPERATING,
GENERAL AND
ADMINISTRATIVE
EXPENSE             (627,802)     (639,242)    (1,471,839)   (1,502,170)
INCOME FROM
OPERATIONS            34,553        29,861         87,296        76,745
INTEREST EXPENSE,
NET                  (15,476)      (16,006)       (36,247)      (38,352)
INCOME BEFORE
INCOME TAXES          19,077        13,855         51,049        38,393
PROVISION FOR
INCOME TAXES          (5,083)       (4,471)       (15,176)      (14,459)
NET INCOME            13,994         9,384         35,873        23,934
NET INCOME PER SHARE   $0.37         $0.25          $0.94         $0.63
WEIGHTED AVERAGE
NUMBER OF COMMON
& COMMON
EQUIVALENT SHARES
OUTSTANDING       38,252,259    38,220,000     38,281,559    38,220,000
NUMBER OF STORES
OPERATED AT END OF
QUARTER                  977         1,063
NUMBER OF
FRANCHISED STORES
SERVED AT END OF QUARTER  36             -

              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. 7,1996  SEPT.9, 1995  SEPT. 7, 1996  SEPT. 9,1995

SALES              $2,329,987    $2,341,171     $5,422,541     $5,476,685
GROSS MARGIN         $662,355      $669,103     $1,559,135     $1,578,915
GROSS MARGIN RATE       28.43%        28.58%         28.75%        28.83%
INCOME FROM
OPERATIONS            $34,553       $29,861        $87,296       $76,745
NET INCOME            $13,994        $9,384        $35,873       $23,934
NET INCOME PER SHARE    $0.37         $0.25          $0.94         $0.63
WEIGHTED AVERAGE
NUMBER OF COMMON
& COMMON EQUIVALENT SHARES
OUTSTANDING        38,252,259    38,220,000     38,281,559    38,220,000
NUMBER OF STORES
OPERATEDAT END
OF QUARTER                977         1,063
NUMBER OF FRANCHISED
STORES SERVED
AT END OF QUARTER          36            -

CONTACT: Mike Rourke

A&P

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