77155--10/31/2007--PENN_TRAFFIC

related topics

{cost, regulation, environmental}

{financial, litigation, operation}

{loss, insurance, financial}

{condition, economic, financial}

{competitive, industry, competition}

{regulation, change, law}

{loan, real, estate}

{operation, natural, condition}

{debt, indebtedness, cash}

{product, market, service}

{stock, price, operating}

{personnel, key, retain}

{stock, price, share}

{system, service, information}

{control, financial, internal}

THE SUPERMARKET INDUSTRY IS HIGHLY COMPETITIVE. IF WE ARE UNABLE TO COMPETE EFFECTIVELY, OUR FINANCIAL CONDITION AND RESULTS OF OPERATIONS COULD BE MATERIALLY AFFECTED. OUR BUSINESS AND RESULTS OF OPERATIONS MAY BE SENSITIVE TO ECONOMIC CONDITIONS THAT IMPACT CONSUMER SPENDING. WE MAY EXPERIENCE SIGNIFICANT FLUCTUATIONS IN OUR COMPARABLE STORE SALES. OUR STORES ARE CONCENTRATED IN THE NORTHEASTERN UNITED STATES, MAKING US SUSCEPTIBLE TO ECONOMIC DOWNTURNS, NATURAL DISASTERS AND OTHER ADVERSE CONDITIONS OR CATASTROPHIC EVENTS IN THAT REGION. OUR DISTRIBUTION AND BAKERY BUSINESS COULD BE NEGATIVELY AFFECTED IF WE FAIL TO RETAIN EXISTING CUSTOMERS OR ATTRACT SIGNIFICANT NUMBERS OF NEW CUSTOMERS. CHANGES IN VENDOR PROMOTIONS OR ALLOWANCES, INCLUDING THE WAY VENDORS TARGET THEIR PROMOTIONAL SPENDING, AND OUR ABILITY TO EFFECTIVELY MANAGE THESE PROGRAMS COULD SIGNIFICANTLY IMPACT OUR MARGINS AND PROFITABILITY. OUR DEBT INSTRUMENTS INCLUDE FINANCIAL AND OTHER COVENANTS THAT MAY LIMIT OUR OPERATING FLEXIBILITY AND MAY AFFECT OUR FUTURE BUSINESS STRATEGIES AND OPERATING RESULTS. SUBSTANTIAL OPERATING LOSSES MAY OCCUR IF THE CUSTOMERS TO WHOM WE EXTEND CREDIT OR FOR WHOM WE SUBLEASE PROPERTIES FAIL TO REPAY US OR HONOR THEIR LEASE OBLIGATIONS. COULD HAVE AN ADVERSE IMPACT ON OUR FINANCIAL RESULTS. WE MAY EXPERIENCE TECHNOLOGY FAILURES WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS. LOSSES AS A RESULT OF OUR OWNING, LEASING AND DEVELOPING REAL ESTATE MAY IMPAIR OUR ABILITY TO FOCUS ON AND EXPAND OUR CORE BUSINESS AS DESIRED. WE ARE AFFECTED BY FLUCTUATING UTILITY AND FUEL COSTS. WE MAY BE HELD LIABLE FOR ENVIRONMENTAL DAMAGES WITH REGARD TO OUR CURRENT AND FORMER PROPERTIES, REGARDLESS OF THE LAWFULNESS OF OUR ACTIVITIES ON SUCH PROPERTIES. CUSTOMER CONCERNS REGARDING FOOD SAFETY MAY ADVERSELY AFFECT OUR BUSINESS. OUR OPERATING RESULTS MAY BE IMPACTED BY VARIABILITY IN SELF-INSURANCE LIABILITY ESTIMATES. WE HAVE NOT RECENTLY FILED PERIODIC REPORTS WITH THE SECURITIES AND EXCHANGE COMMISSION. WE HAVE NOT RECENTLY FILED LOCAL, STATE OR FEDERAL INCOME TAX RETURNS WITH THE APPROPRIATE GOVERNMENTAL AUTHORITIES. THERE IS NO EXISTING TRADING MARKET FOR OUR COMMON STOCK. THE RESULTS OF THE ONGOING GOVERNMENTAL INVESTIGATIONS REGARDING OUR PROMOTIONAL ALLOWANCE PRACTICES AND POLICIES MAY HAVE AN ADVERSE EFFECT ON US. AND THESE WEAKNESSES COULD HAVE A MATERIALLY ADVERSE EFFECT ON US.

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77155--10/31/2007--PENN_TRAFFIC_CO