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 FILES AMENDED PLAN OF REORGANIZATION AND
           DISCLOSURE STATEMENT ANNOUNCING SALE-LEASEBACK TRANSACTION


                  SYRACUSE, NEW YORK - DECEMBER 23, 2004 - The Penn Traffic
Company (OTC: PNFTQ.PK) today filed its First Amended Plan of Reorganization and
Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of
New York, which describes its intention to consummate a sale-leaseback
transaction with respect to its distribution centers upon emergence from chapter
11. Under the sale-leaseback transaction, Penn Traffic will sell five of its
owned distribution centers located in New York and Pennsylvania to Equity
Industrial Partners Corp. for $37,000,000, and Equity Industrial will lease the
distribution centers back to Penn Traffic for an initial term of 15 years, with
four consecutive five year options to renew the lease (except that the lease
term will end no later than the 14th anniversary of the expiration of the
initial term with respect to the Pennsylvania distribution centers). In addition
to the proceeds of the sale-leaseback transaction, Penn Traffic expects to fund
its operations upon emergence from chapter 11 with a working capital revolving
credit facility.

                  Penn Traffic filed its initial Plan of Reorganization and
Disclosure Statement on August 20, 2004, but postponed the hearing to approve
the Disclosure Statement to explore multiple compelling proposals for a
sale-leaseback transaction with respect to its owned properties. Following
extensive negotiations with several potential buyers, Penn Traffic concluded
that the sale-leaseback transaction with Equity Industrial Partners Corp.,
together with a working capital revolving credit facility, would provide the
Company with the most optimal levels of liquidity to repay all of its current
senior secured bank debt in full, to invest in continuing to modernize and
enhance its store base, and for other working capital needs after emerging from
chapter 11. A hearing to approve the Amended Disclosure Statement is scheduled
for January 27, 2005 at 10:00 a.m. The Company expects to emerge from chapter 11
in the first quarter of 2005.

                  Robert Chapman, President and Chief Executive Officer of Penn
Traffic, said: "We are very pleased to have reached agreement with Equity
Industrial Partners



Corp. to sell and then lease back our five distribution centers. This
transaction will help provide the Company with the financial strength and
flexibility to emerge from chapter 11 with dramatically reduced debt and strong
liquidity to fund our operations going forward. The Company is now
well-positioned to complete our restructuring efforts within the next couple of
months, and to come out of chapter 11 with a solid core of very healthy and
competitive supermarkets, together with strong bakery and wholesale/franchise
operations. We are very excited and optimistic about Penn Traffic's future."

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 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


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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.

                       _________________________________


                  The Penn Traffic Company operates 109 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 80 licensed franchises and 39 independent
operators.



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