EXHIBIT 99.1
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[LOGO - THE PENN TRAFFIC COMPANY]


FOR IMMEDIATE RELEASE                                  CONTACT:     Marc Jampole
                                                          Jampole Communications
                                                                    412-471-2463


            JOSEPH FISHER RESIGNS AS PENN TRAFFIC'S PRESIDENT AND CEO

                 PENN TRAFFIC ALSO ANNOUNCES THE CLOSING OF ITS
                          $270 MILLION DIP FINANCING.

         SYRACUSE, NY, AUGUST 7, 2003 - The Penn Traffic Company (OTC: PNFTQ.PK)
today announced that Joseph Fisher has resigned as President and Chief Executive
Officer for personal family reasons, effective August 6, 2003. The Board of
Directors has appointed Steven G. Panagos to serve as interim CEO. Mr. Fisher
will remain a Director of the Company and be available to assist with the
transition of leadership.

         "Joe Fisher has worked tirelessly for Penn Traffic for five years,"
said Peter L. Zurkow, Penn Traffic's Chairman of the Board. "His leadership of
our employees and of our day-to-day operations will be sorely missed, but we are
glad that he has agreed to stay on the Board of Directors, where he will
continue to contribute his substantial knowledge of the supermarket business to
our Company."

         "The Board strongly believes that Steve Panagos' appointment as interim
CEO is the best course for Penn Traffic, its creditors, and its employees," said
Mr. Zurkow. "We have already begun our search for Joe Fisher's permanent
replacement, but we are confident that in the interim Steve Panagos is the right
person to lead Penn Traffic."

         Mr. Panagos is currently Penn Traffic's Chief Restructuring Officer and
will remain in that position. He has been actively engaged in advising the
Company on reorganization matters and working with the senior management team to
prepare Penn Traffic for completion of its reorganization as a strong and viable
company. Mr. Panagos has vast retail operating experience. As interim CEO of
Crown Books, he led that company out of chapter 11, and has also helped numerous
other companies with financial restructuring counsel, including Federated
Department Stores, Maidenform, Metromedia Fiber Network and Montgomery Ward. Mr.
Panagos is a Managing Director of Kroll Zolfo Cooper, a prominent New York-based
financial consulting firm with extensive experience in financial restructurings.


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         Penn Traffic has established a CEO search committee comprising Mr.
Zurkow, Kevin P. Collins, Chairman of the Company's Audit Committee, and David
B. Jenkins and Byron E. Allumbaugh, Directors, who together have more than 75
years of experience in the supermarket industry. Mr. Zurkow will serve as chair
of the search committee.

         Penn Traffic also announced that later today it expects to close a $270
million permanent debtor-in-possession (DIP) financing, which was approved on
July 31 by the U.S. Bankruptcy Court for the Southern District of New York.
Fleet Capital Corporation and a syndicate of lenders that were lenders to the
Company prior to the filing of its chapter 11 petition is providing the $270
million senior secured DIP financing facility.

         "The Company is gratified by the strong support of our lenders as
evidenced by the closing of the DIP financing which we view as an important vote
of confidence in our Company, our people and our potential," said Mr. Panagos.
"I am looking forward to continuing to work with all of our employees, vendors
and other business partners to strengthen Penn Traffic."

FORWARD-LOOKING STATEMENTS

         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 Company's ability to improve its operating performance and
effectuate its business plans; the ability of the Company to continue as a going
concern; the ability of the Company to operate pursuant to the terms of it's DIP
facility; court approval of the Company's motions prosecuted by it from time to
time; the ability of the Company to develop, prosecute, confirm and consummate
one or more plans of reorganization with respect to the chapter 11 cases; risks
associated with third parties seeking and obtaining court approval to terminate
or shorten the exclusivity period for the Company to propose and confirm one or
more plans of reorganization, for the appointment of a chapter 11 trustee or to
convert the cases to chapter 7 cases; the ability of the Company to obtain trade
credit, and shipments and terms with vendors and service providers for current
orders; the Company's ability to maintain contracts that are critical to its
operations; potential adverse developments with respect to the Company's
liquidity or results of operations; the ability of the Search Committee to find
a replacement CEO; 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; 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 76 licensed
franchises and 53 independent operators.




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