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PENN TRAFFIC ANNOUNCES INCREASE IN SIZE OF PUBLIC OFFERING OF SENIOR SUBORDINATED NOTES DUE 2005

 JOHNSTOWN, Pa., April 2 /PRNewswire/ -- The Penn Traffic Company (AMEX: PNF) announced today that it has filed an amendment to its registration statement relating to a proposed public offering of $300 million principal amount of senior subordinated notes due 2005 (the "notes") and 2,000,000 shares of common stock to reflect an increase in the size of the offering of the notes from $300 million to $400 million.
 The offering of the notes will be underwritten by Goldman, Sachs & Co. and by BT Securities Corporation. The managers for the offering of the common stock are Goldman, Sachs & Co.
 The offerings are part of a series of transactions, including the mergers of the company's subsidiaries P&C Food Markets, Inc. ("P&C") and Big Bear Stores Company ("Big Bear") into Penn Traffic and the retirement of certain debt-bearing interest at a weighted average rate of approximately 13-1/2 percent per annum.
 These transactions are intended to simplify the company's capital structure and reduce interest expense. Penn Traffic said it believes that the creation of a single borrowing entity with greater geographic, demographic, economic and competitive diversity will reduce its cost of capital. In addition, Penn Traffic said it believes that the transactions will allow it to improve its purchasing power and reduce operating expenses.
 A registration statement relating to the notes and the common stock has been filed with the Securities and Exchange Commission, but has not yet become effective. The notes and the common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the notes or the common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering will be made only by means of a prospectus.
 Penn Traffic is one of the leading food retailers in the Eastern United States, operating 217 supermarkets in Western Pennsylvania, Upstate New York, Ohio and Northern West Virginia under the names of Riverside Markets, Bi-Lo Foods, Quality Markets, P&C Foods, Big Bear and Big Bear Plus. Additionally, the company operates a wholesale food distribution business serving 133 licensed franchisees and 127 independent operators and a discount general merchandise business with 17 stores. Grand Union, in which Penn Traffic holds a 17.8 percent equity interest, operates supermarkets in the Eastern United States.
 -0- 4/2/93
 /CONTACT: Martin A. Fox, vice chairman - finance, of Penn Traffic, 212-370-0040/
 (PNF)


CO: Penn Traffic Company ST: Pennsylvania IN: REA SU: OFR

CD-KC -- PG006 -- 2575 04/02/93 14:19 EST
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Publication:PR Newswire
Date:Apr 2, 1993
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