The Great Atlantic & Pacific Tea Company, Inc. (A&P)(NYSE:GAP) today announced agreements for the sale of 19 New Orleans-area Sav-A-Center stores to Rouse's Supermarket (Thibadoux, Louisiana). In addition, two other Sav-A-Center units are being sold to other buyers including an independent food retailer. William Blair & Company, LLC served as the exclusive financial advisor for A&P on the transaction.

The Company said that as stipulated by the terms of the sale agreements, substantially all current Sav-A-Center associates will be offered positions by new owners. Transfer of ownership of all stores is expected to be completed over an approximately six-week period.

A&P said the sale of the Sav-A-Center stores will complete its exit from non-core markets, concentrating its retail operations fully in the Northeast, as aligned with the Company's strategic transformation. Earlier this year, A&P announced an agreement to acquire Pathmark Stores Inc., also based in the Northeast. That transaction is currently under FTC review and is expected to be completed during the second half of A&P's fiscal year 2007.

Eric Claus, President & CEO of A&P, said, ?This marks a critical step in A&P's strategic transformation, enabling us to focus all resources on our core operations in the Northeast. We're especially delighted with the sale of the majority of our local stores to Rouse's, in light of our desire to sell the business largely intact for the benefit of our outstanding office and store associates. Their dedication made possible our swift return to business following Hurricane Katrina, and the ongoing revitalization of our operations since then. We're grateful for their efforts, and pleased that the majority will now go forward under new ownership committed to the New Orleans marketplace, as that great city continues to rebuild.?

Founded in 1859, A&P is one of the nation's first supermarket chains. The Company operates 337 stores in eight states and the District of Columbia under the following trade names: A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Sav-A-Center and Food Basics.

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