Penn Traffic Signs Procurement Agreement with C&S Wholesale Grocers, Inc

Business Wire, Feb 5, 2008

SYRACUSE, N.Y. -- The Penn Traffic Company (Pink Sheets: PTFC.PK) announced today that it has signed a produce procurement contract with C&S Wholesale Grocers, Inc., the nation's second largest food wholesaler. Effective March 1, 2008, the agreement will allow Penn Traffic to benefit from purchasing cost efficiencies while expanding access to new and alternative products.

The Keene, New Hampshire-based C&S Wholesale Grocers, Inc., which currently serves more than 5,000 stores from over 70 locations in 12 states, will provide sourcing, purchasing and in-bound logistics services for all of Penn Traffic's retail stores and wholesale customers. "We're continually seeking process enhancements that will drive greater value throughout our company. The C&S agreement will benefit our organization's financial well-being while improving the service we provide our customers," commented Penn Traffic President and Chief Executive Officer Greg Young.

Penn Traffic will continue to operate all of its existing warehouse and transportation functions, including the internal management of out-bound product delivery to its retail stores and wholesale customers, as well as merchandising and inspection teams.

About Penn Traffic

The Penn Traffic Company currently operates 98 supermarkets in Pennsylvania, upstate New York, Vermont and New Hampshire under the BiLo, P&C and Quality trade names. Penn Traffic also operates a wholesale food distribution business serving approximately 121 independent operators.

Forward Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, as amended, reflecting management's current analysis and expectations, based on what management believes to be reasonable assumptions. These forward-looking statements include statements relating to our anticipated financial performance and business prospects. Statements proceeded by, followed by or that include words such as "believe," "anticipate," "estimate," "expect," "could," and other similar expressions are to be considered such forward-looking statements. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from those projected, stated or implied, depending on such factors as: the ability of the company to improve its operating performance and effectuate its business plans; the ability of the company to operate pursuant to the terms of its credit facilities and to comply with the terms of its lending agreements or to amend or modify the terms of such agreements as may be needed from time to time; the ability of the company to generate cash; the ability of the company to attract and maintain adequate capital; the ability of the company to refinance; increases in prevailing interest rates; the ability of the company to obtain trade credit, and shipments and terms with vendors and service providers for current orders; the ability of the company to maintain contracts that are critical to its operations; potential adverse developments with respect to the company's liquidity or results of operations; general economic and business conditions; competition, including increased capital investment and promotional activity by the company's competitors; availability, location and terms of sites for store development; the successful implementation of the company's capital expenditure program; labor relations; labor and employee benefit costs including increases in health care and pension costs and the level of contributions to the company sponsored pension plans; the result of the pursuit of strategic alternatives; economic and competitive uncertainties; the ability of the company to pursue strategic alternatives; economic and competitive uncertainties; changes in strategies; changes in generally accepted accounting principles; adverse changes in economic and political climates around the world, including terrorist activities and international hostilities; and the outcome of pending, or the commencement of any new, legal proceedings against, or governmental investigations of the company, including the previously announced SEC and U.S. Attorney's Office investigations. The company cautions that the foregoing list of important factors is not exhaustive. Accordingly, there can be no assurance that the company will meet future results, performance or achievements expressed or implied by such forward-looking statements. This paragraph is included to provide safe harbor for forward-looking statements, which are not generally required to be publicly revised as circumstances change, and which the company does not intend to update.