VOLUME AT PATHMARK INCHES UPWARD IN QUARTER AND HALF

WOODBRIDGE, N.J. -- Pathmark Stores here said sales rose slightly and operating cash flow declined for the second quarter and 26 weeks ended Aug. 2.the quarter and 0.9% for the half.The company said it attributed the same-store sales gains to the implementation of strategic initiatives to lower prices and improved customer service.Operating cash flow was down 17.7% for the quarter to $50.6 million

WOODBRIDGE, N.J. -- Pathmark Stores here said sales rose slightly and operating cash flow declined for the second quarter and 26 weeks ended Aug. 2.

the quarter and 0.9% for the half.

The company said it attributed the same-store sales gains to the implementation of strategic initiatives to lower prices and improved customer service.

Operating cash flow was down 17.7% for the quarter to $50.6 million and 14.5% for the half to $98.9 million, "[which] reflects the anticipated investments necessary to provide greater value to customers," said Ron Marshall, executive vice president and chief financial officer.

The company said it had a net loss for the quarter and year-to-date, including an extraordinary item of $7.5 million representing a loss on early extinguishment of debt, primarily related to the company's refinancing of its bank credit agreement.

2ND-QUARTER RESULTS

Qtr Ended 8/2/97 8/3/96

Sales $931.9 million $931.3 million

Change + 0.06%

Same-store + 1.1%

Net Income ($14.8 million) ($1.7 million)

26 Weeks 1997 1996

Sales $1.85 billion $1.84 billion

Change + 0.54%

Same-store + 0.9%

Net Income ($23.6 million) ($7.2 million)

Includes extraordinary item of $7.5 million representing a loss on early extinguishment of debt, primarily related to Pathmark's refinancing of its bank credit agreement.