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99.1                          Press Release dated October 20, 2004







                                                                    EXHIBIT 99.1
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[GRAPHIC OMITTED]
[LOGO - THE PENN TRAFFIC COMPANY]


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




                     PENN TRAFFIC ANNOUNCES POSTPONEMENT OF
                        DISCLOSURE STATEMENT HEARING AND
                 CONTINUED PURSUIT OF SALE-LEASEBACK TRANSACTION



                 (DISCLOSURE STATEMENT HEARING TO BE POSTPONED)


                  SYRACUSE, NEW YORK - - OCTOBER 20, 2004 - The Penn Traffic
Company (OTC: PNFTQ.PK) today announced that it is continuing to explore the
multiple compelling proposals for a sale-leaseback transaction it has received
involving most of its owned stores and distribution center properties. If
consummated, the proposed sale-leaseback transaction could result in substantial
additional funding to the Company. Accordingly, the Company is postponing the
October 21, 2004 hearing to approve the Disclosure Statement for its proposed
Plan of Reorganization to a date to be announced. Penn Traffic would use the
cash received from the proposed sale-leaseback transaction, in part, to repay
all of its senior secured bank debt in full, to invest in continuing to
modernize and enhance its store base, and for other working capital needs. The
sale-leaseback proposals received by Penn Traffic are non-binding indications of
interest and any definitive transaction remains subject to execution of binding
agreements and other customary conditions, including approval of the U.S.
Bankruptcy Court for the Southern District of New York.

                  Penn Traffic filed its Plan of Reorganization with the U.S.
Bankruptcy Court for the Southern District of New York on August 20, 2004, and a
hearing to approve the Disclosure Statement for that Plan was originally
scheduled for September 23, 2004, but was rescheduled by the Company to October
21st after it had received multiple attractive sale-leaseback proposals. The
previously filed Plan of Reorganization contemplated that reorganized Penn
Traffic would emerge from chapter 11 with approximately $55 million of senior
secured bank debt and approximately $50 million of undrawn availability under
its proposed working capital revolving credit facility.



                  In light of the progress made to date on the potential
sale-leaseback transaction and the significant change it would have on Penn
Traffic's capital structure upon emergence from chapter 11, the Company has
decided to postpone the October 21st Disclosure Statement hearing to give it
more time to pursue entering into a binding sale-leaseback agreement within the
next few weeks, subject to bankruptcy court approval. In that event, the Company
will file an amended Plan of Reorganization that would include a detailed
description of the sale-leaseback transaction and the resulting adjustments to
Penn Traffic's capital structure. Penn Traffic's Creditors' Committee, as well
as its senior secured bank lenders, have informed the Company that they support
the postponement of the Disclosure Statement hearing and the continued pursuit
of the sale-leaseback proposals.

                  Robert Chapman, President and CEO of Penn Traffic, said: "The
proposed sale-leaseback transaction offers many potential benefits to the
Company that require continued review and due consideration. The proposals on
the table would unlock the intrinsic value in the Company's real estate assets,
eliminate the need for any long term debt upon the Company's emergence from
bankruptcy and significantly enhance our liquidity, which will in turn enhance
our ability to compete in our core markets. Because of these benefits, the
Company, with the support of its banks and creditors committee, has decided to
postpone this week's bankruptcy court hearing to continue to explore these very
compelling proposals. We remain fully committed to the successful restructuring
of Penn Traffic on a timely basis."

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 preceded 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 continue as a going concern; 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; its ability to generate
cash; its ability to attract and maintain adequate capital; its ability to
refinance; increases in prevailing interest rates; 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; the ability of the


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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; uncertainties regarding the
terms of the proposed sale-leaseback transaction, including terms and conditions
under which, if at all, the Company may consummate such transaction; 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;
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 yet-to-be-instituted legal proceedings and governmental 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.



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