Penn Traffic Announces Sales of Nine Pennsylvania Stores.

SYRACUSE, N.Y.--(BUSINESS WIRE)--Dec. 22, 1998--The Penn Traffic Company (OTC:PNFT) today announced that it has sold the assets associated with five Bi-Lo supermarkets in northeastern Pennsylvania to Robesonia, Pennsylvania-based Associated Wholesalers, Inc. (AWI). The supermarkets are located in the following towns: Jim Thorpe, Mt. Carmel, Old Forge, Tamaqua and West Pittston, Pennsylvania.

Syracuse, New York-based Penn Traffic also announced that it has agreed to sell the assets associated with four Bi-Lo supermarkets in northeastern Pennsylvania to Sunbury, Pennsylvania- based Weis Markets, Inc. The supermarkets are located in the following towns: Carbondale, Honesdale, Mount Pocono and Tannersville, Pennsylvania. The sale to Weis Markets is subject to customary closing conditions, including approval by the Federal Trade Commission. No assurance can be made that these conditions for closing will be satisfied.

The nine Bi-Lo supermarkets listed above are part of the 22 Bi- Lo stores that Penn Traffic previously announced it was holding for disposition.

The Penn Traffic Company operates 241 supermarkets in Pennsylvania, upstate New York, Ohio and West Virginia under the "Big Bear," "Big Bear Plus," "Bi-Lo Foods," "P&C Foods," and "Quality Markets" trade names. Penn Traffic also operates wholesale food distribution businesses serving 100 licensed franchises and 86 independent operators.