Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:

Marc Jampole
Jampole Communications, Inc.
412-471-2463

PENN TRAFFIC ANNOUNCES COMPLETION OF INTERNAL INVESTIGATION BY
AUDIT COMMITTEE

SYRACUSE, NEW YORK — June 1, 2006 - The Penn Traffic Company announced today that the Audit Committee of the Board of Directors has completed its internal investigation of the Company’s promotional allowance practices. The Audit Committee found that the Company had engaged in certain improper practices principally relating to the premature recognition of promotional allowances and that these practices had largely ceased by the time of the Company’s Chapter 11 filing under the Bankruptcy Code in May 2003. Penn Traffic continues to cooperate with the ongoing investigations by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office.

The Audit Committee also determined, on a preliminary basis, that these improper practices affected the Company’s prior reported financial results and the Company ultimately may restate its previously issued financial statements. However, no determination regarding restatement will be made until the Company completes an assessment of the financial statement impact.

Penn Traffic has full access to its working capital facility. At May 26, 2006, Penn Traffic had undrawn availability of approximately $43.7 million and a 30-day average undrawn availability of approximately $45.5 million under this revolving credit facility.

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 diff er 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 com petitors; 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 previously announced SEC and U.S. Attorney’s Office 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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The Penn Traffic Company operates 112 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 49 independent operators and Penny Curtiss, a Syracuse-based commercial bakery.

Delaware	001-9930	25-0716800
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1200 State Fair Boulevard
Syracuse, New York		13221-4737
(Address of principal executive offices)		(Zip Code)

	Exhibit Number		Description
99.1		Press Release dated
		June 1, 2006

Date: June 1, 2006
	THE PENN TRAFFIC COMPANY


	By:	/s/ FRANCIS D. PRICE, JR.
		Francis D. Price, Jr.
		Vice President

	Exhibit Number		Description
99.1		Press Release dated
		June 1, 2006