Milberg Weiss Announces Class Action Lawsuit Against Great Atlantic & Pacific Tea Company, Inc. and Certain of Its Officers and Directors

Business Wire, June 3, 2002

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--June 3, 2002

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on June 3, 2002, on behalf of purchasers of the securities of Great Atlantic & Pacific Tea Company, Inc. ("Great Atlantic" or the "Company") (NYSE: GAP) between November 15, 2001 and May 28, 2002, inclusive.

A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/cases/greatatlantic/

The action is pending in the United States District Court, District of New Jersey, located at Martin Luther King, Jr. Federal Building and U.S. Courthouse, 50 Walnut Street, Newark, New Jersey 07101, against defendants Great Atlantic, Christian W.E. Haub, Elizabeth Culligan, Fred Corrado, Mitchell Goldstein and Kenneth A. Uhl.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between November 15, 2001 and May 28, 2002, thereby artificially inflating the price of Great Atlantic securities. Throughout the Class Period, as alleged in the complaint, defendants issued statements regarding Great Atlantic's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company was employing improper accounting practices regarding the recognition of vendor allowances and the accounting of inventory in certain of its regions for fiscal year 2001 in violation of Generally Accepted Accounting Principles. As a result, the Company's operating results were materially misrepresented and overstated; and (ii) based on the foregoing, defendants' statements concerning the prospects of Great Atlantic were lacking in a reasonable basis at all times.

On May 28, 2002, the last day of the Class Period, the Company announced that it would delay the filing of its annual report with the SEC while it conducted an accounting review which will most likely result in a charge to earnings. The accounting review will focus on the appropriate timing for the recognition of vendor allowances and the accounting of inventory in certain of the Company's regions for fiscal year 2001. Great Atlantic further noted that a substantial portion of any charge the Company will take will reverse credits which were recognized prematurely as reductions of cost of merchandise sold, and that portion will therefore be recognized in periods subsequent to fiscal 2001 as reductions of cost of merchandise sold. Following this disclosure, Great Atlantic stock fell $4.03 per share, or approximately 16%, to close on May 28, 2002 at $21.070 per share.

If you bought the securities of Great Atlantic between November 15, 2001 and May 28, 2002, you may, no later than August 2, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP, a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has more information about the firm.

If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

Steven G. Schulman or Samuel H. Rudman
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165

Phone number: (800) 320-5081
Email: GreatAtlanticcase@milbergNY.com
Website: http://www.milberg.com