EXHIBIT 99.1
                                                                    ------------


       [GRAPHIC OMITTED]
[LOGO - THEPENN TRAFFIC COMPANY]


          PENN TRAFFIC ANNOUNCES RECEIPT OF SEC SUBPOENAS AND DELAY OF
            FINALIZATION AND RELEASE OF AUDITED FINANCIAL STATEMENTS


   WORKING CAPITAL LENDERS EXTEND DEADLINE FOR DELIVERY OF AUDITED FINANCIALS

         SYRACUSE, NEW YORK - JULY 1, 2005 - The Penn Traffic Company (Penn
Traffic) announced today that it has received requests for information in the
form of subpoenas from the U.S. Securities and Exchange Commission (SEC) for
documents concerning its promotional and allowance practices and policies. As
Penn Traffic disclosed in its Disclosure Statement for its recently confirmed
Plan of Reorganization, Penn Traffic continues to cooperate with the SEC and the
U.S. Attorney's office in their investigation into these matters and will comply
with these subpoenas. Penn Traffic's Audit Committee also commenced an internal
investigation into these matters which it has suspended while the government
investigations continue and the Company has placed an employee on leave of
absence pending completion of these investigations.

         As a result of these pending investigations, Penn Traffic also
announced that it would be delaying the finalization and release of its audited
financial statements for its 2003, 2004 and 2005 fiscal years, and that these
audited financial statements would not be completed before August 30, 2005, the
deadline for delivery of such statements in its $164 million revolving credit
facility. At Penn Traffic's request, the lenders under Penn Traffic's revolving
credit facilities have agreed to extend the deadline for delivery of its audited
financial statements to December 31, 2005, enabling Penn Traffic to continue to
access fully its working capital facility. At June 25, 2005, Penn Traffic had
undrawn availability of approximately $62 million under this revolving credit
facility.

         "We regret that the audit of our financial statements cannot be
completed prior to the August deadline," said Robert Chapman, Penn Traffic's
President and Chief Executive Officer, "but we are extremely gratified that our
lenders have been understanding in working with us to get past this disruption
so that we can achieve the goals we established for our reorganized Company and
its 9,000 plus employees."


                                       1



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 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; 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; 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,
including the pending SEC and US Attorney investigations described in this press
release. 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 79 licensed franchises and 40 independent operators and Penny Curtiss, a
Syracuse-based commercial bakery.