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                                                                    Exhibit 99.1

                                                   GRISTEDE'S FOODS, INC.

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Executive Offices                                         823 Eleventh Avenue
                                                        New York, NY 10019-3545
                                                          (Phone) 212-956-5803
                                                           (Fax) 212-247-4509
FOR IMMEDIATE RELEASE


GRISTEDE'S FOODS, INC.
         ("GRI" - AMERICAN STOCK EXCHANGE)


             GRISTEDE'S EBITDA INCREASED BY 50.5% TO $3,185,156 FROM
                 $2,116,396 FOR FIRST QUARTER ENDING 2/29/2004


New York, NY. May 14, 2004: Gristede's Foods Inc. announced today that its
EBITDA for first quarter ending 2/29/2004 had increased by 50.5% to $3,185,156
from $2,116,396 for the comparable quarter last year.

Sales for the 2004 first quarter decreased to $69,838,182 from $74,594,759 due
to the closing of two stores as well as the reduction of promotional pricing
implemented for seven new stores recently opened by Gristede's. In addition,
Gristede's has lost an undetermined amount of sales due to a new entrant into
the New York e-commerce grocery market that has been giving away $50 in free
groceries to first time purchasers.

                                    1st quarter                1st quarter
                                    (13 weeks) ended           (13 weeks) ended
                                    February 29, 2004          March 2, 2003
                                    -----------------          -------------

Sales                                $ 69,838,182             $ 74,594,759
EBITDA*                                 3,185,156                2,116,396
Net loss                                 (251,572)              (1,382,736)
Earnings (loss) per share            $      (0.01)                   (0.07)
Weighted average number
  of shares                            19,636,574               19,636,574


     o EBITDA is net income before interest expense, income taxes, depreciation
       amortization and changes in deferred rent.


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The negative EBIDTA reported during fiscal 2003 from the seven new stores during
the first year of operation (and 2 closed stores), was approximately $3,900,000.
The negative EBITDA for these stores for the quarter ending 2/29/04 has been
reduced to under $300,000.


The Company uses the term "EBITDA" to mean net income before income taxes,
interest expense, depreciation, amortization, and changes in deferred rent and
other non-cash charges. EBITDA is a term not defined under United States
generally accepted accounting principles. The Company's management considers
EBITDA to be an important measure in evaluating the Company's financial
performance and uses this measure in managing its ongoing operations. The
Company's method of computation of EBITDA may or may not be comparable to other
similarly titled measures used by other companies. (See reconciliation of EBITDA
to net income in the table set forth below).


RECONCILIATION OF EBITDA TO NET INCOME:


                                       1st quarter                1st quarter
                                       ended                      ended
                                       February 29, 2004          March 2, 2003
                                       -----------------          -------------

Net (loss)                                (251,572)             (1,382,736)
Interest expense                           776,929                 842,769
Income tax expense                               0                       0
Depreciation, amortization &
  changes in deferred rent               2,659,799               2,656,483

EBITDA                                   3,185,156               2,116,396

Supplemental Data

** Loan by UAC to Gristede's            24,018,521              16,188,447


** UAC is United Acquisition Corp., a company owned 100% indirectly by Mr.
Catsimatidis, the majority shareholder which has advanced monies to Gristede's.
Of this amount, $23.5 million is subordinated to the Company's agent bank.

Gristede's has completed its agreement with its agent Bank to increase its
revolving line of credit to $19.5 from $17 million, and extend its maturity from
March 2005 to March 2007.



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UAC LINE OF CREDIT

Pending final settlement of the Company's "Northeast Blackout" insurance claim,
United Acquisition Corp. (UAC), agreed to provide the Company with an interim $5
million liquidity credit facility available during fiscal 2004. As of February
29, 2004, UAC advanced approximately $2,250,000 of the $5 million.

BANK  LINE OF CREDIT STATUS

The Company's Banks have extended the revolver to March 31, 2007 for 3 years and
increased it from $17 million to $19.5 million.

GOING PRIVATE

The Company's independent directors have hired an outside firm to determine the
fairness of the Chairman's offer to take the Company private.

INSURANCE PROCEEDS

The insurance company auditors are in the process of completing their audit. The
Company is owed a remaining balance of approximately $5 million in insurance
proceeds from the Blackout. The Company is hopeful that it will receive it in
the 3rd quarter of fiscal 2004. The Company received $1 million in December 2003
as an advance against this claim.


XPRESSGROCER.COM

The Company started XpressGrocer.com on October 14, 2003. XpressGrocer.com had a
start-up negative EBITDA amounting to approximately $240,000 for the first
quarter ended 2/29/04.

Gristede's has signed a contract with a national internet retailer to sell and
fulfill grocery orders through their web venue. This venture is slated to launch
approximately June 2004. The Company has not yet determined the extent of sales
or profitability this venture will generate.





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The statements contained herein that are not purely historical are forward
looking statements within the meaning of the Securities Exchange Act of 1934.
All forward-looking statements contained herein are based upon information
available to the Company as of that date hereof, and the Company assumes no
obligation to update any such forward-looking statements. Actual results could
differ materially from the Company's current expectations. Factors that could
cause or contribute to such differences include, but are not limited to, the
factors and risks discussed in the Company's Annual Report on Form 10-K for the
fiscal year ended November 30, 2003, and the other reports files from time to
tome by the Company with the Securities and Exchange Commission.






For further information, please contact Mr. Catsimatidis, Chairman & Chief
Executive Officer, Gristede's Foods, Inc., at (212) 956-5803.



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