EXHIBIT 99.1
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FOR IMMEDIATE RELEASE:                                CONTACT:      Marc Jampole
                                                    Jampole Communications, Inc.
                                                                    412-471-2463


                       THE PENN TRAFFIC COMPANY ANNOUNCES
                          NEW AGREEMENT WITH BANK GROUP


SYRACUSE, NY, MAY 12, 2003 --- The Penn Traffic Company (Nasdaq: PNFT) today
announced that it had entered into an amendment to its Credit Facility with its
bank lenders that replaces the one-week waiver agreement the Company previously
announced. The amendment reduces the required financial covenants in the Credit
Facility and as a result of this amendment, the Company was in compliance with
the financial covenants in the Credit Facility as of May 2, 2003 (the end of its
first fiscal quarter) and can borrow, repay and re-borrow under the revolving
credit portion of its Credit Facility. The amendment also contains a provision
that waives the Company's obligation to file its Annual Report on Form 10-K for
the fiscal year ended February 1, 2003 until the earlier of June 9, 2003 or the
date the Company's independent auditor notifies the Company that it will not
issue its unqualified report on the Company's consolidated financial statements
to be included in the Annual Report on Form 10-K. On May 2, 2003, the Company
had approximately $52 million of availability under the Credit Facility, after
giving effect to the amendment.

         "We are pleased that our bank group has responded positively to our
requests for covenant modifications, which will provide us with sufficient
flexibility in this challenging business environment" said Mr. Joseph V. Fisher,
Penn Traffic's President & Chief Executive Officer. "As we manage our business
through this challenging period, we are fortunate to have a bank group that has
supported us for many years as a constructive business partner."

         The Company also announced that it continues to work with its
independent auditor to finalize the audit of its consolidated financial
statements for the fiscal year ended February 1, 2003 so that it can file its
Annual Report on Form 10-K within the waiver period set forth in the amendment
to the Credit Facility. While the Company and its independent auditor are
working diligently to conclude the audit so that the Company may file its Annual
Report on Form 10-K, there can be no assurance that the Company will be able to
file its Form 10-K by the period


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required under the amended Credit Facility and failure by the Company to file
its Form 10-K by such period would trigger a default under the Credit Facility.

         Certain statements included in this press release which are not
statements of historical fact are intended to be, and are hereby identified as,
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended. Without limiting the foregoing, the
words "anticipate," "believe," "estimate," "expect," "intend," "plan," "project"
and other similar expressions are intended to identify forward-looking
statements. The Company cautions readers that forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievement expressed or
implied by such forward-looking statements. Such factors include, among other
things, the success or failure of the Company in implementing its current
business and operational strategies; 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 impact of the Company's loyalty card program;
availability and terms of and access to capital; the Company's ability to
improve its operating performance and effectuate its business plans; the
Company's liquidity and other financial considerations; the ability of the
Company to satisfy the financial and other covenants contained in its debt
instruments or otherwise negotiate further accommodations from its lenders; the
ability of the Company to complete the audit of its financial statements for the
year ended February 1, 2003 and have PricewaterhouseCoopers LLP deliver an
unqualified audit report on such financial statements; the success or failure in
the Company's ability to continue to obtain customary terms from its suppliers,
vendors and other third parties; and the outcome of pending or yet-to-be
instituted legal proceedings and governmental investigations. Penn Traffic
cautions that the foregoing list of important factors is not exhaustive.


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         The Penn Traffic Company operates 212 supermarkets in Ohio, West
Virginia, Pennsylvania, upstate New York, Vermont and New Hampshire under the
"Big Bear," "Big Bear Plus," "Bi-Lo," "P&C" and "Quality" trade names. Penn
Traffic also operates a wholesale food distribution business serving 79 licensed
franchises and 66 independent operators.


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