EXHIBIT 99.1
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[LOGO - THE PENN TRAFFIC COMPANY]


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


               PENN TRAFFIC APPOINTS NEW EXECUTIVE VICE PRESIDENT
                          AND CHIEF FINANCIAL OFFICER


         SYRACUSE, NEW YORK, JANUARY 4, 2005 -- The Penn Traffic Company (OTC:
PNFTQ.PK) today announced that it has appointed supermarket industry finance
executive Robert B. Dimond, CPA, as its new Executive Vice President and Chief
Financial Officer, subject to the approval of the U.S. Bankruptcy Court for the
Southern District of New York.

         "We are delighted to have Bob join us as our new Executive Vice
President and Chief Financial Officer," said Bob Chapman, President and Chief
Executive Officer of Penn Traffic. "Bob's wealth of experience will be a
tremendous contribution to our organization as we exit chapter 11 and position
the company for long-term growth."

         "Appointing Bob Dimond marks another major milestone in our efforts to
reorganize our Company," said Mr. Chapman. Penn Traffic also recently announced
that it intends to emerge from chapter 11 in the first quarter of 2005.

         Mr. Dimond replaces William B. Murphy, who has been serving as Penn
Traffic's interim CFO. Mr. Murphy will remain with Penn Traffic for an
unspecified period of time to facilitate the transition and assist with the
restructuring process.

         Mr. Dimond joins Penn Traffic with 16 years of experience in finance
and accounting at supermarkets throughout the U.S. He served as executive vice
president, CFO and treasurer for Nash Finch Company, a $4 billion supermarket
operator and food distribution company based in Minneapolis, Minnesota.
Previously, Mr. Dimond was group vice president and CFO for the Kroger Co.
Western Region and served as vice president and controller for Smith's Food &
Drug Centers, Inc. Mr. Dimond's experience and responsibilities encompass a wide
range of activities including accounting, tax, financial reporting, budgeting
and forecasting, strategic planning and analysis, and mergers and acquisitions.





         Penn Traffic entered chapter 11 in May 2003 with the intention to exit
reorganization as a stronger, more competitive company. In December 2004, the
Company filed its First Amended Plan of Reorganization Disclosure Statement with
the U.S. Bankruptcy Court for the Southern District of New York. More
information about Penn Traffic's reorganization case is available at the
following phone numbers: Employees: 877-807-7097 (toll-free); Customers:
800-724-0205 (toll-free); Vendors and Suppliers: 315-461-2341.

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 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


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generally required to be publicly revised as circumstances change, and which
the Company does not intend to update.

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         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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