----

|                                                                                                                                                                         | For the 16 Weeks Ended |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|------------|
|                                                                                                                                                                         | June 18, 2011          |       |   | June 19, 2010 |   |
|                                                                                                                                                                         |                   |       |   |   |   |
| Sales                                                                                                                                                                        | $                      | 2,230,646  |   |   | $ | 2,564,930 |   |
| Cost of merchandise sold                                                                                                                                                     |                   | (1,608,449 | ) |   |   | (1,801,118 | ) |
| Gross margin                                                                                                                                                                 |                   | 622,197    |   |   |   | 763,812 |   |
| Store operating, general and administrative expense                                                                                                                          |                   | (788,727   | ) |   |   | (821,016 | ) |
| Goodwill, trademark and long-lived asset impairment                                                                                                                          |                   | (55,418    | ) |   |   | (5,398 | ) |
| Loss from continuing operations before                                                                                                                                       |                   |       |   |   |   |   |   |
| nonoperating income, interest expense, net                                                                                                                                   |                   |       |   |   |   |   |   |
| and reorganization items, net                                                                                                                                                |                   | (221,948   | ) |   |   | (62,602 | ) |
| Nonoperating income                                                                                                                                                          |                   | 83         |   |   |   | 8,277 |   |
| Interest expense, net                                                                                                                                                        |                   | (48,454    | ) |   |   | (61,142 | ) |
| Reorganization items, net                                                                                                                                                    |                   | 77,878     |   |   |   | - |   |
| Loss from continuing operations before income taxes                                                                                                                          |                   | (192,441   | ) |   |   | (115,467 | ) |
| Benefit from (provision for) income taxes                                                                                                                                    |                   | 14,650     |   |   |   | (140 | ) |
| Loss from continuing operations                                                                                                                                              |                   | (177,791   | ) |   |   | (115,607 | ) |
| Discontinued operations:                                                                                                                                                     |                   |       |   |   |   |   |   |
| Income (loss) from operations of discontinued businesses, net ofincome tax benefit of $1,142 and $0 for the 16 weeks endedJune 18, 2011 and June 19, 2010, respectively |                   | 797        |   |   |   | (7,115 | ) |
| Gain on disposal of discontinued operations, net of income taxprovision of $0 for the 16 weeks ended June 19, 2010                                                           |                   | -          |   |   |   | 79 |   |
| Reorganization items, net of income tax provision of $14,361for the 16 weeks ended June 18, 2011                                                                             |                   | 19,833     |   |   |   | - |   |
| Income (loss) from discontinued operations                                                                                                                                   |                   | 20,630     |   |   |   | (7,036 | ) |
| Net loss                                                                                                                                                                     | $                      | (157,161   | ) |   | $ | (122,643 | ) |
|                                                                                                                                                                         |                   |       |   |   |   |   |   |
| Net (loss) income per share – basic:                                                                                                                                   |                   |       |   |   |   |   |   |
| Continuing operations                                                                                                                                                        | $                      | (3.33      | )  |   | $ | (2.27 | ) |
| Discontinued operations                                                                                                                                                      |                   | 0.38       |   |   |   | (0.13 | ) |
| Net loss per share – basic                                                                                                                                             | $                      | (2.95      | )  |   | $ | (2.40 | ) |
|                                                                                                                                                                         |                   |       |   |   |   |   |   |
| Net (loss) income per share – diluted:                                                                                                                                 |                   |       |   |   |   |   |   |
| Continuing operations                                                                                                                                                        | $                      | (3.33      | ) |   | $ | (4.60 | ) |
| Discontinued operations                                                                                                                                                      |                   | 0.38       |   |   |   | (0.23 | ) |
| Net loss per share – diluted                                                                                                                                           | $                      | (2.95      | ) |   | $ | (4.83 | ) |
|                                                                                                                                                                         |                   |       |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                                                                                  |                   |       |   |   |   |   |   |
| Basic                                                                                                                                                                        |                   | 53,852,470 |   |   |   | 53,498,121 |   |
| Diluted                                                                                                                                                                      |                   | 53,852,470 |   |   |   | 30,524,651 |   |
|                                                                                                                                                                         |                   |       |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                                                                                              |                   |

----

|                                        |   |         |       |   |    |   |   |          |   |   | Accumulated |   |   |                |    |   |    |   |
|---------------------------------------------|--------|--------------|------------|--------|---------|--------|--------|---------------|--------|--------|-------------|--------|--------|---------------------|---------|--------|---------|--------|
|                                        |   |         |       |   |    |   |   | Additional    |   |   | Other       |   |   |                |    |   | Total   |   |
|                                        |   | Common Stock |       |   | Paid-in |   |   | Comprehensive |   |   | Accumulated |   |   | Stockholders’ |    |
| 16 Weeks Ended June 18, 2011                |   | Shares       |       |   | Amount  |   |   | Capital       |   |   | Loss        |   |   | Deficit             |    |   | Deficit |   |
| Balance at 2/26/2011                        |   |         | 53,852,470 |   |    | $      | 53,852 |          |   | $      | 511,157     |   |   | $                   | (75,309 | )      |    | $      | (1,630,664 | ) |   | $ | (1,140,964 | ) |
| Net loss                                    |   |         | -          |   |    |   | -      |          |   |   | -           |   |   |                | -       |   |    |   | (157,161 | ) |   |   | (157,161 | ) |
| Beneficial conversion feature related to    |   |         |       |   |    |   |   |          |   |   |        |   |   |                |    |   |    |   |   |   |   |   |   |   |
| preferred stock, net of accretion           |   |         | -          |   |    |   | -      |          |   |   | (1,482      | )      |   |                | -       |   |    |   | - |   |   |   | (1,482 | ) |
| Preferred stock financing fees amortization |   |         | -          |   |    |   | -      |          |   |   | (535        | )      |   |                | -       |   |    |   | - |   |   |   | (535 | ) |
| Other share based awards                    |   |         | -          |   |    |   | -      |          |   |   | 491         |   |   |                | -       |   |    |   | - |   |   |   | 491 |   |
| Other comprehensive loss                    |   |         | -          |   |    |   | -      |          |   |   | -           |   |   |                | (1,236  | )      |    |   | - |   |   |   | (1,236 | ) |
| Balance at 06/18/2011                       |   |         | 53,852,470 |   |    | $      | 53,852 |          |   | $      | 509,631     |   |   | $                   | (76,545 | )      |    | $      | (1,787,825 | ) |   | $ | (1,300,887 | ) |
|                                        |   |         |       |   |    |   |   |          |   |   |        |   |   |                |    |   |    |   |   |   |   |   |   |   |
| 16 Weeks Ended June 19, 2010                |   |         |       |   |    |   |   |          |   |   |        |   |   |                |    |   |    |   |   |   |   |   |   |   |
| Balance at 2/27/2010                        |   |         | 55,868,129 |   |    | $      | 55,868 |          |   | $      | 526,421     |   |   | $                   | (79,403 | )      |    | $      | (1,032,089 | ) |   | $ | (529,203 | ) |
| Net loss                                    |   |         | -          |   |    |   | -      |          |   |   | -           |   |   |                | -       |   |    |   | (122,643 | ) |   |   | (122,643 | ) |
| Beneficial conversion feature related to    |   |         |       |   |    |   |   |          |   |   |        |   |   |                |    |   |    |   |   |   |   |   |   |   |
| preferred stock, net of accretion           |   |         | -          |   |    |   | -      |          |   |   | (1,481      | )      |   |                | -       |   |    |   | - |   |   |   | (1,481 | ) |
| Dividends on preferred stock                |   |         | -          |   |    |   | -      |          |   |   | (4,308      | )      |   |                | -       |   |    |   | - |   |   |   | (4,308 | ) |
| Preferred stock financing fees amortization |   |         | -          |   |    |   | -      |          |   |   | (534        | )      |   |                | -       |   |    |   | - |   |   |   | (534 | ) |
| Stock options exercised                     |   |         | 4,834      |   |    |   | 5      |          |   |   | 23          |   |   |                | -       |   |    |   | - |   |   |   | 28 |   |
| Other share based awards                    |   |         | 250,245    |   |    |   | 250    |          |   |   | (1,111      | )      |   |                | -       |   |    |   | - |   |   |   | (861 | ) |
| Other comprehensive income                  |   |         | -          |   |    |   | -      |          |   |   | -           |   |   |                | 252     |   |    |   | - |   |   |   | 252 |   |
| Balance at 06/19/2010                       |   |         | 56,123,208 |   |    | $      | 56,123 |          |   | $      | 519,010     |   |   | $                   | (79,151 | )      |    | $      | (1,154,732 | ) |   | $ | (658,750 | ) |

| Comprehensive Loss                                                     |   | 16 Weeks Ended   |   |
|------------------------------------------------------------------------|--------|------------------|--------|
|                                                                   |   | June 18, 2011    |   | June 19, 2010 |   |
| Net loss                                                               |   |  $(157,161) |   |  $(122,643) |   |
| Pension and other postretirement benefits, net of tax of $1,719 and $0 |   | (1,236)          |   |  252 |   |
| Other comprehensive (loss) income, net of tax of $1,719 and $0         |   | (1,236)          |   |  252 |   |
| Total comprehensive loss                                               |   |  $(158,397) |   |  $(122,391) |   |
|                                                                   |   |             |   |   |   |
| See Notes to Consolidated Financial Statements.                        |

----

| Assets                                                                                                        |   | June 18, 2011 |       |   | February 26, 2011 |   |
|---------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
| Current assets:                                                                                               |   |          |       |   |              |   |
| Cash and cash equivalents                                                                                     |   | $             | 312,131    |   |              | $      | 352,607 |   |
| Restricted cash                                                                                               |   |          | 1,731      |   |              |   | 1,731 |   |
| Accounts receivable, net of allowance for doubtful accounts of $5,189 and $5,554 at                           |   |          |       |   |              |   |   |   |
| June 18, 2011 and February 26, 2011, respectively                                                             |   |          | 161,982    |   |              |   | 209,966 |   |
| Inventories, net                                                                                              |   |          | 406,279    |   |              |   | 440,960 |   |
| Prepaid expenses and other current assets                                                                     |   |          | 35,451     |   |              |   | 36,329 |   |
| Assets held for sale                                                                                          |   |          | 12,915     |   |              |   | - |   |
| Total current assets                                                                                          |   |          | 930,489    |   |              |   | 1,041,593 |   |
| Non-current assets:                                                                                           |   |          |       |   |              |   |   |   |
| Property:                                                                                                     |   |          |       |   |              |   |   |   |
| Property owned, net                                                                                           |   |          | 1,040,903  |   |              |   | 1,163,853 |   |
| Property under capital leases, net                                                                            |   |          | 60,296     |   |              |   | 63,346 |   |
| Property, net                                                                                                 |   |          | 1,101,199  |   |              |   | 1,227,199 |   |
| Goodwill                                                                                                      |   |          | 110,412    |   |              |   | 110,412 |   |
| Intangible assets, net                                                                                        |   |          | 120,988    |   |              |   | 124,288 |   |
| Other assets                                                                                                  |   |          | 142,313    |   |              |   | 141,357 |   |
| Total assets                                                                                                  |   | $             | 2,405,401  |   |              | $      | 2,644,849 |   |
|                                                                                                          |   |          |       |   |              |   |   |   |
| Liabilities and Stockholders’ Deficit                                                                   |   |          |       |   |              |   |   |   |
| Current liabilities:                                                                                          |   |          |       |   |              |   |   |   |
| Current portion of long-term debt                                                                             |   | $             | 350,000    |   |              | $      | - |   |
| Accounts payable                                                                                              |   |          | 112,300    |   |              |   | 119,245 |   |
| Book overdrafts                                                                                               |   |          | 20,897     |   |              |   | 23,722 |   |
| Accrued salaries, wages and benefits                                                                          |   |          | 105,111    |   |              |   | 109,428 |   |
| Accrued taxes                                                                                                 |   |          | 32,309     |   |              |   | 26,175 |   |
| Other accruals                                                                                                |   |          | 75,427     |   |              |   | 65,048 |   |
| Total current liabilities                                                                                     |   |          | 696,044    |   |              |   | 343,618 |   |
| Non-current liabilities:                                                                                      |   |          |       |   |              |   |   |   |
| Long-term debt                                                                                                |   |          | -          |   |              |   | 350,000 |   |
| Other non-current liabilities                                                                                 |   |          | 75,539     |   |              |   | 74,162 |   |
| Total liabilities not subject to compromise                                                                   |   |          | 771,583    |   |              |   | 767,780 |   |
| Liabilities subject to compromise                                                                             |   |          | 2,789,412  |   |              |   | 2,874,734 |   |
| Total liabilities                                                                                             |   |          | 3,560,995  |   |              |   | 3,642,514 |   |
|                                                                                                          |   |          |       |   |              |   |   |   |
| Series A redeemable preferred stock – no par value, $1,000 redemption value; authorized –         |   |          |       |   |              |   |   |   |
| 700,000 shares; issued 179,020 shares at June 18, 2011 and February 26, 2011                                  |   |          | 145,293    |   |              |   | 143,299 |   |
|                                                                                                          |   |          |       |   |              |   |   |   |
| Commitments and contingencies  (Refer to Note 20)                                                   |   |          |       |   |              |   |   |   |
|                                                                                                          |   |          |       |   |              |   |   |   |
| Stockholders’ deficit:                                                                                  |   |          |       |   |              |   |   |   |
| Common stock – $1 par value; authorized – 260,000,000 shares; issued and outstanding – |   |          |       |   |              |   |   |   |
| 53,852,470 shares at June 18, 2011 and February 26, 2011                                                      |   |          | 53,852     |   |              |   | 53,852 |   |
| Additional paid-in capital                                                                                    |   |          | 509,631    |   |              |   | 511,157 |   |
| Accumulated other comprehensive loss                                                                          |   |          | (76,545    | )      |              |   | (75,309 | ) |
| Accumulated deficit                                                                                           |   |          | (1,787,825 | )      |              |   | (1,630,664 | ) |
| Total stockholders’ deficit                                                                             |   |          | (1,300,887 | )      |              |   | (1,140,964 | ) |
| Total liabilities and stockholders’ deficit                                                             |   | $             | 2,405,401  |   |              | $      | 2,644,849 |   |
|                                                                                                          |   |          |       |   |              |   |   |   |
| See Notes to Consolidated Financial Statements.                                                               |   |

----

|                                                                                                       |   | 16 Weeks Ended |     |
|------------------------------------------------------------------------------------------------------------|--------|----------------|----------|
|                                                                                                       |   | June 18, 2011  |     |   | June 19, 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                      |   |           |     |   |   |   |
| Net loss                                                                                                   |   | $              | (157,161 | ) |   | $ | (122,643 | ) |
| Adjustments to reconcile net loss to net cash used in                                                      |   |           |     |   |   |   |   |   |
|        operating activities (see next page)                             |   |           | 92,890   |   |   |   | 82,782 |   |
| Other changes in assets and liabilities:                                                                   |   |           |     |   |   |   |   |   |
|       Decrease in receivables                                                |   |           | 47,920   |   |   |   | 4,139 |   |
|       Decrease (increase) in inventories                                     |   |           | 26,573   |   |   |   | (4,401 | ) |
|       (Increase) decrease in prepaid expenses and other current assets       |   |           | (2,039   | ) |   |   | 1,209 |   |
|       Increase in other assets                                               |   |           | (4,487   | ) |   |   | (1,224 | ) |
|       (Decrease) increase in accounts payable                                |   |           | (21,151  | ) |   |   | 1,584 |   |
|       (Decrease) increase in accrued salaries, wages and benefits, and taxes |   |           | (1,853   | ) |   |   | 2,059 |   |
|       Increase (decrease) in other accruals                                  |   |           | 67,753   |   |   |   | (1,763 | ) |
|       Decrease in other non-current liabilities                              |   |           | (67,943  | ) |   |   | (19,978 | ) |
|       Other operating activities, net                                        |   |           | (113     | )  |   |   | (29 | ) |
|       Payment for reorganization items                                            |   |           | (11,304  | ) |   |   | - |   |
|       Net cash used in operating activities                                       |   |           | (30,915  | ) |   |   | (58,265 | ) |
|                                                                                                       |   |           |     |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                      |   |           |     |   |   |   |   |   |
|       Expenditures for property                                              |   |           | (11,177  | ) |   |   | (19,668 | ) |
|       Proceeds from disposal of property                                     |   |           | 6,805    |   |   |   | 1,677 |   |
|       Decrease in restricted cash                                            |   |           | -        |   |   |   | 302 |   |
|       Proceeds from sale of pharmacy assets                                  |   |           | 2,821    |   |   |   | - |   |
| Net cash used in investing activities                                                                      |   |           | (1,551   | ) |   |   | (17,689 | ) |
|                                                                                                       |   |           |     |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                      |   |           |     |   |   |   |   |   |
|       Proceeds from issuance of long-term debt                               |   |           | -        |   |   |   | 800 |   |
|       Principal payments on long-term debt                                   |   |           | (55      | ) |   |   | (69 | ) |
|       Principal payments on long-term real estate liabilities                |   |           | (355     | )  |   |   | (383 | ) |
|       Principal payments on capital leases                                   |   |           | (3,360   | ) |   |   | (3,775 | ) |
|       (Decrease) increase in book overdrafts                                 |   |           | (2,825   | ) |   |   | 4,710 |   |
|       Payments of financing fees for debtor-in-possession financing          |   |           | (1,415   | ) |   |   | - |   |
|       Deferred financing fees                                                |   |           | -        |   |   |   | (21 | ) |
|       Dividends paid on preferred stock                                      |   |           | -        |   |   |   | (7,000 | ) |
|       Proceeds from exercises of stock options                               |   |           | -        |   |   |   | 28 |   |
| Net cash used in financing activities                                                                      |   |           | (8,010   | ) |   |   | (5,710 | ) |
|                                                                                                       |   |           |     |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                                  |   |           | (40,476  | ) |   |   | (81,664 | ) |
| Cash and cash equivalents at beginning of period                                                           |   |           | 352,607  |   |   |   | 252,426 |   |
| Cash and cash equivalents at end of period                                                                 |   | $              | 312,131  |   |   | $ | 170,762 |   |
|                                                                                                       |   |           |     |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                            |   |

----

| ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES:      |   |
|----------------------------------------------------------------------------------|--------|
|                                                                             |   |   |   |   |   |   |
|                                                                             |   | 16 Weeks Ended |   |
|                                                                             |   | June 18, 2011 |   |   | June 19, 2010 |   |
| Depreciation and amortization                                                    |   | $ | 59,444 |   |   | $ | 70,379 |   |
| Impairment of long-lived assets                                                  |   |   | 55,418 |   |   |   | 5,890 |   |
| Nonoperating income                                                              |   |   | (83 | ) |   |   | (8,277 | ) |
| Non-cash interest expense                                                        |   |   | 3,726 |   |   |   | 12,785 |   |
| Stock compensation expense (income)                                              |   |   | 491 |   |   |   | (861 | ) |
| Pension withdrawal costs                                                         |   |   | 13,923 |   |   |   | - |   |
| Employee benefit related costs                                                   |   |   | 3,672 |   |   |   | 1,965 |   |
| LIFO adjustment                                                                  |   |   | 1,122 |   |   |   | 856 |   |
| Asset disposition initiatives in the normal course of business                   |   |   | 64,662 |   |   |   | - |   |
| Asset disposition initiatives relating to discontinued operations                |   |   | - |   |   |   | 4 |   |
| Non-cash occupancy charges for locations closed in the normal course of business |   |   | 813 |   |   |   | 466 |   |
| (Gains) losses on disposal of owned property and write-down of property, net     |   |   | (146 | ) |   |   | 1,025 |   |
| Amortization of deferred real estate income                                      |   |   | (1,030 | ) |   |   | (1,371 | ) |
| Gain on disposal of discontinued operations                                      |   |   | - |   |   |   | (79 | ) |
| Gain on sale of pharmacy assets                                                  |   |   | (2,821 | ) |   |   | - |   |
| C&S contract effect                                                          |   |   | 6,986 |   |   |   | - |   |
| Provision for deferred income taxes                                              |   |   | (1,719 | ) |   |   | - |   |
| Reorganization items, net relating to continuing operations                      |   |   | (77,878 | ) |   |   | - |   |
| Reorganization items, net relating to discontinued operations                    |   |   | (34,194 | ) |   |   | - |   |
| Financing fees                                                                   |   |   | 504 |   |   |   | - |   |
| Total adjustments to net loss                                                    |   | $ | 92,890 |   |   | $ | 82,782 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                  |   |

----

| 3.   | Goodwill and Other Intangible Assets |
|----------------|--------------------------------------|

|                          |   | Fresh  |    |   | Gourmet |   |   | Other  |   |   | Total  |   |
|-------------------------------|--------|--------|---------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
| Goodwill                      |   | $      | 116,032 |   |    | $      | 12,110 |   |   | $      | 5,974  |   |   | $ | 134,116 |   |
| Accumulated impairment losses |   |   | (23,704 | )      |    |   | -      |   |   |   | -      |   |   |   | (23,704 | ) |
| Goodwill at February 26, 2011 |   | $      | 92,328  |   |    | $      | 12,110 |   |   | $      | 5,974  |   |   | $ | 110,412 |   |
|                          |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                      |   | $      | 116,032 |   |    | $      | 12,110 |   |   | $      | 5,974  |   |   | $ | 134,116 |   |
| Accumulated impairment losses |   |   | (23,704 | )      |    |   | -      |   |   |   | -      |   |   |   | (23,704 | ) |
| Goodwill at June 18, 2011     |   | $      | 92,328  |   |    | $      | 12,110 |   |   | $      | 5,974  |   |   | $ | 110,412 |   |

----

|                                |   | Weighted Average |   |   | Gross    |   |    | Accumulated     |   |   | Accumulated     |   |
|-------------------------------------|--------|------------------|--------|--------|----------|--------|---------|-----------------|--------|--------|-----------------|--------|
|                                |   | Amortization     |   |   | Carrying |   |    | Amortization at |   |   | Amortization at |   |
|                                |   | Period (years)   |   |   | Amount   |   |    | June 18, 2011   |   |   | Feb. 26, 2011   |   |
| Loyalty card customer relationships |   |             | 5      |   |     | $      | 19,200  |            |   | $      | 13,114          |   |   | $ | 11,815 |   |
| In-store advertiser relationships   |   |             | 20     |   |     |   | 14,720  |            |   |   | 2,604           |   |   |   | 2,378 |   |
| Pharmacy payor relationships        |   |             | 13     |   |     |   | 75,000  |            |   |   | 20,414          |   |   |   | 18,639 |   |
| Pathmark trademark                  |   | Indefinite       |   |   |     | 48,200 |    |            |   | -      |            |   |   | - |   |
| Total                               |   |             |   |   |     | $      | 157,120 |            |   | $      | 36,132          |   |   | $ | 32,832 |   |

| 2011       |   |   |   | $7,425 |
|------------|--------|--------|--------|--------|
| 2012       |   |   |   | 9,670  |
| 2013       |   |   |   | 6,505  |
| 2014       |   |   |   | 6,505  |
| 2015       |   |   |   | 6,505  |
| Thereafter |   |   |   | 36,178 |

|             |   |           |   |   | Fair Value Measurements at June 18, 2011 Using |   |
|------------------|--------|----------------|--------|--------|------------------------------------------------|--------|
|             |   |           |   |   | Quoted Prices                                  |   |   | Significant Other |   |   | Significant |   |
|             |   | Total Carrying |   |   | in Active                                      |   |   | Observable |   |   | Unobservable |   |
|             |   | Value at       |   |   | Markets                                        |   |   | Inputs |   |   | Inputs |   |
|             |   | June 18, 2011  |   |   | (Level 1)                                      |   |   | (Level 2) |   |   | (Level 3) |   |
| Assets:          |   |           |   |   |                                           |   |   |   |   |   |   |   |
| Cash equivalents |   | $              | 1,552  |   |                                           | $      | - |   |   | $ | 1,552 |   |   | $ | - |   |
|             |   |           |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:     |   |           |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Series B warrant |   | $              | 87     |   |                                           | $      | - |   |   | $ | 87 |   |   | $ | - |   |
|             |   |           |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |

----

|             |   |           |   |   | Fair Value Measurements at Feb. 26, 2011 Using |   |
|------------------|--------|----------------|--------|--------|------------------------------------------------|--------|
|             |   |           |   |   | Quoted Prices                                  |   |   | Significant Other |   |   | Significant |   |
|             |   | Total Carrying |   |   | in Active                                      |   |   | Observable |   |   | Unobservable |   |
|             |   | Value at       |   |   | Markets                                        |   |   | Inputs |   |   | Inputs |   |
|             |   | Feb. 26, 2011  |   |   | (Level 1)                                      |   |   | (Level 2) |   |   | (Level 3) |   |
| Assets:          |   |           |   |   |                                           |   |   |   |   |   |   |   |
| Cash equivalents |   | $              | 1,553  |   |                                           | $      | - |   |   | $ | 1,553 |   |   | $ | - |   |
|             |   |           |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:     |   |           |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Series B warrant |   | $              | 170    |   |                                           | $      | - |   |   | $ | 170 |   |   | $ | - |   |

|                                                          |   | At June 18, 2011 |    |   | At February 26, 2011 |   |
|---------------------------------------------------------------|--------|------------------|---------|--------|----------------------|--------|
|                                                          |   | Carrying         |    |   | Fair                 |   |   | Carrying |   |   | Fair |   |
|                                                          |   | Amount           |    |   | Value                |   |   | Amount |   |   | Value |   |
| Current portion of long-term debt                             |   | $                | 350,000 |   |                 | $      | 350,000 |   |   | $ | 159 |   |   | $ | 159 |   |
| Long-term debt-subject to compromise, net of related discount |   |             | 905,278 |   |                 |   | 470,674 |   |   |   | 1,255,225 |   |   |   | 765,577 |   |

----

|                                             |   | At             |    |   | At                |   |
|--------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                             |   | June 18, 2011  |    |   | February 26, 2011 |   |
|                                             |   | Other Accruals |    |   |              |   |   |   |   |   | Other Accruals |   |   |   |   |   |   |   |
|                                             |   | Prior to       |    |   | Amounts           |   |   |   |   |   | Prior to |   |   | Amounts |   |   |   |   |
|                                             |   | Financial      |    |   | Classified as     |   |   |   |   |   | Financial |   |   | Classified as |   |   |   |   |
|                                             |   | Statement      |    |   | Subject to        |   |   | Other |   |   | Statement |   |   | Subject to |   |   | Other |   |
|                                             |   | Classification |    |   | Compromise1       |   |   | Accruals |   |   | Classification |   |   | Compromise1 |   |   | Accruals |   |
| Self-insurance reserves                          |   | $              | 52,446  |   |              | $      | (43,406 | ) |   | $ | 9,040 |   |   | $ | 47,792 |   |   | $ | (45,466 | ) |   | $ | 2,326 |   |
| Deferred taxes                                   |   |           | 27,064  |   |              |   | - |   |   |   | 27,064 |   |   |   | 28,335 |   |   |   | - |   |   |   | 28,335 |   |
| Closed locations reserves                        |   |           | 6,261   |   |              |   | (6,261 | )  |   |   | - |   |   |   | 11,358 |   |   |   | (11,358 | ) |   |   | - |   |
| Damages claim for rejected leases                |   |           | 168,796 |   |              |   | (168,796 | ) |   |   | - |   |   |   | 106,642 |   |   |   | (106,642 | ) |   |   | - |   |
| Pension withdrawal liabilities                   |   |           | 10,461  |   |              |   | (10,461 | ) |   |   | - |   |   |   | 10,461 |   |   |   | (10,461 | ) |   |   | - |   |
| GHI liability for employee benefits              |   |           | 7,946   |   |              |   | (7,946 | ) |   |   | - |   |   |   | 7,776 |   |   |   | (7,776 | ) |   |   | - |   |
| Accrued occupancy-related costs for open stores  |   |           | 40,721  |   |              |   | (22,200 | ) |   |   | 18,521 |   |   |   | 48,742 |   |   |   | (24,523 | ) |   |   | 24,219 |   |
| Deferred income                                  |   |           | 20,664  |   |              |   | (11,931 | ) |   |   | 8,733 |   |   |   | 23,299 |   |   |   | (21,363 | ) |   |   | 1,936 |   |
| Deferred real estate income                      |   |           | 1,799   |   |              |   | (1,799 | ) |   |   | - |   |   |   | 2,508 |   |   |   | (2,508 | ) |   |   | - |   |
| Accrued audit, legal and other                   |   |           | 10,377  |   |              |   | (6,886 | ) |   |   | 3,491 |   |   |   | 11,777 |   |   |   | (8,118 | ) |   |   | 3,659 |   |
| Accrued interest                                 |   |           | 49,213  |   |              |   | (43,021 | ) |   |   | 6,192 |   |   |   | 35,600 |   |   |   | (33,921 | ) |   |   | 1,679 |   |
| Other postretirement and postemployment benefits |   |           | 2,918   |   |              |   | (2,918 | ) |   |   | - |   |   |   | 2,918 |   |   |   | (2,918 | ) |   |   | - |   |
| Accrued advertising                              |   |           | 488     |   |              |   | - |   |   |   | 488 |   |   |   | 718 |   |   |   | - |   |   |   | 718 |   |
| Other accruals                                   |   |           | 11,208  |   |              |   | (9,310 | ) |   |   | 1,898 |   |   |   | 10,181 |   |   |   | (8,005 | ) |   |   | 2,176 |   |
| Total                                            |   | $              | 410,362 |   |              | $      | (334,935 | ) |   | $ | 75,427 |   |   | $ | 348,107 |   |   | $ | (283,059 | ) |   | $ | 65,048 |   |

----

|                                             |   | At                 |    |   | At                    |   |
|--------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
|                                             |   | June 18, 2011      |    |   | February 26, 2011     |   |
|                                             |   | Non-Current        |    |   |                  |   |   |   |   |   | Non-Current |   |   |   |   |   |   |   |
|                                             |   | Liabilities        |    |   |                  |   |   |   |   |   | Liabilities |   |   |   |   |   |   |   |
|                                             |   | Prior to Financial |    |   | Amounts Classified as |   |   | Other Non- |   |   | Prior to Financial |   |   | Amounts Classified as |   |   | Other Non- |   |
|                                             |   | Statement          |    |   | Subject to            |   |   | Current |   |   | Statement |   |   | Subject to |   |   | Current |   |
|                                             |   | Classification     |    |   | Compromise1           |   |   | Liabilities |   |   | Classification |   |   | Compromise1 |   |   | Liabilities |   |
| Self-insurance reserves                          |   | $                  | 365,797 |   |                  | $      | (352,854 | ) |   | $ | 12,943 |   |   | $ | 366,891 |   |   | $ | (354,704 | ) |   | $ | 12,187 |   |
| Closed locations reserves                        |   |               | 5,093   |   |                  |   | (5,093 | ) |   |   | - |   |   |   | 39,192 |   |   |   | (39,192 | ) |   |   | - |   |
| Pension withdrawal liabilities                   |   |               | 102,152 |   |                  |   | (102,152 | ) |   |   | - |   |   |   | 86,735 |   |   |   | (86,735 | ) |   |   | - |   |
| GHI liability for employee benefits              |   |               | 88,755  |   |                  |   | (88,755 | ) |   |   | - |   |   |   | 86,505 |   |   |   | (86,505 | ) |   |   | - |   |
| Pension plan benefits                            |   |               | 127,659 |   |                  |   | (127,659 | ) |   |   | - |   |   |   | 125,000 |   |   |   | (125,000 | ) |   |   | - |   |
| Other postretirement and postemployment benefits |   |               | 38,913  |   |                  |   | (38,913 | ) |   |   | - |   |   |   | 38,737 |   |   |   | (38,737 | ) |   |   | - |   |
| Loans on life insurance policies                 |   |               | 61,943  |   |                  |   | - |   |   |   | 61,943 |   |   |   | 61,943 |   |   |   | - |   |   |   | 61,943 |   |
| Deferred rent liabilities                        |   |               | 51,570  |   |                  |   | (51,524 | ) |   |   | 46 |   |   |   | 56,287 |   |   |   | (56,287 | ) |   |   | - |   |
| Deferred income                                  |   |               | 22,676  |   |                  |   | (22,112 | ) |   |   | 564 |   |   |   | 53,031 |   |   |   | (53,031 | ) |   |   | - |   |
| Deferred real estate income                      |   |               | 33,196  |   |                  |   | (33,196 | ) |   |   | - |   |   |   | 86,801 |   |   |   | (86,801 | ) |   |   | - |   |
| Unfavorable lease liabilities                    |   |               | 825     |   |                  |   | (825 | ) |   |   | - |   |   |   | 4,201 |   |   |   | (4,201 | ) |   |   | - |   |
| Other non-current liabilities                    |   |               | 10,721  |   |                  |   | (10,678 | ) |   |   | 43 |   |   |   | 11,348 |   |   |   | (11,316 | ) |   |   | 32 |   |
| Total                                            |   | $                  | 909,300 |   |                  | $      | (833,761 | ) |   | $ | 75,539 |   |   | $ | 1,016,671 |   |   | $ | (942,509 | ) |   | $ | 74,162 |   |

----

| 8.   | Indebtedness and Other Financial Liabilities |
|----------------|----------------------------------------------|

|                                                     |   | At             |      |   | At                |   |
|----------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                                     |   | June 18, 2011  |      |   | February 26, 2011 |   |
|                                                     |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Indebtedness   |      |   |              |   |   |   |   |   | Indebtedness |   |   |   |   |   |   |   |
|                                                     |   | Prior to       |      |   | Amounts           |   |   |   |   |   | Prior to |   |   | Amounts |   |   |   |   |
|                                                     |   | Financial      |      |   | Classified as     |   |   |   |   |   | Financial |   |   | Classified as |   |   |   |   |
|                                                     |   | Statement      |      |   | Subject to        |   |   |   |   |   | Statement |   |   | Subject to |   |   |   |   |
|                                                     |   | Classification |      |   | Compromise1       |   |   | Indebtedness |   |   | Classification |   |   | Compromise1 |   |   | Indebtedness |   |
| Debtor-in-Possession Credit Agreement, due June 14, 2012 |   | $              | 350,000   |   |              | $      | - |   |   | $ | 350,000 |   |   | $ | 350,000 |   |   | $ | - |   |   | $ | 350,000 |   |
| Related Party Promissory Note, due August 18, 2011       |   |           | 10,000    |   |              |   | (10,000 | ) |   |   | - |   |   |   | 10,000 |   |   |   | (10,000 | ) |   |   | - |   |
| 5.125% Convertible Senior Notes, due June 15, 2011       |   |           | 165,000   |   |              |   | (165,000 | ) |   |   | - |   |   |   | 165,000 |   |   |   | (165,000 | ) |   |   | - |   |
| 9.125% Senior Notes, dueDecember 15, 2011                |   |           | 12,840    |   |              |   | (12,840 | ) |   |   | - |   |   |   | 12,840 |   |   |   | (12,840 | ) |   |   | - |   |
| 6.750% Convertible Senior Notes, due December 15, 2012   |   |           | 255,000   |   |              |   | (255,000 | ) |   |   | - |   |   |   | 255,000 |   |   |   | (255,000 | ) |   |   | - |   |
| 11.375% Senior Secured Notes, due August 1, 2015         |   |           | 260,000   |   |              |   | (260,000 | ) |   |   | - |   |   |   | 260,000 |   |   |   | (260,000 | ) |   |   | - |   |
| 9.375% Notes, due August 1, 2039                         |   |           | 200,000   |   |              |   | (200,000 | ) |   |   | - |   |   |   | 200,000 |   |   |   | (200,000 | ) |   |   | - |   |
| Other                                                    |   |           | 2,438     |   |              |   | (2,438 | ) |   |   | - |   |   |   | 2,544 |   |   |   | (2,544 | ) |   |   | - |   |
| Subtotal                                                 |   |           | 1,255,278 |   |              |   | (905,278 | ) |   |   | 350,000 |   |   |   | 1,255,384 |   |   |   | (905,384 | ) |   |   | 350,000  |   |
| Less current portion of long-term debt                   |   |           | (350,000  | )      |              |   | - |   |   |   | (350,000 | ) |   |   | (159 | ) |   |   | 159 |   |   |   | - |   |
| Long-term debt                                           |   | $              | 905,278   |   |              | $      | (905,278 | ) |   | $ | - |   |   | $ | 1,255,225 |   |   | $ | (905,225 | ) |   | $ | 350,000 |   |

|   | • |   | the DIP Lenders agreed to lend up to $800.0 million in the form of a $350.0 million term loan and a $450.0 million revolving credit facility with a $250.0 million sublimit for letters of credit, in each case subject to the terms and conditions therein; |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | our Company’s and the Subsidiary Borrower’s obligations under the DIP Credit Agreement and the other specified loan documents are guaranteed by our Company’s certain other subsidiaries that are Debtors (“Subsidiary Guarantors” and, together with our Company and the Subsidiary Borrowers, the “Loan Parties”); and |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | the Loan Parties’ obligations under the DIP Credit Agreement and such other specified loan documents are secured by a security interest in, and lien upon, substantially all of the Loan Parties’ existing and after-acquired personal and real property, having the priority and subject to the terms therein and in the order(s) entered into by the Bankruptcy Court, as applicable. |
|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date               | Minimum Cumulative EBITDA                                |
|--------------------|----------------------------------------------------------|
| August 13, 2011    | $         - |
| September 10, 2011 |  10.0                                               |
| October 8, 2011    | 20.0                                                     |
| November 5, 2011   | 35.0                                                     |
| December 3, 2011   | 50.0                                                     |
| December 31, 2011  | 65.0                                                     |
| January 28, 2012   | 90.0                                                     |
| February 25, 2012  | 100.0                                                    |
| March 24, 2012     | 110.0                                                    |
| April 21, 2012     | 125.0                                                    |
| May 19, 2012       |  150.0                                              |
| June 16, 2012      | 175.0                                                    |

|                    | At            |   | At            |
|-------------------------|---------------|--------|---------------|
|                    | June 18, 2011 |   | Feb. 26, 2011 |
| Expected life           | 3.98 Years    |   | 4.29 Years    |
| Volatility              | 116.7%        |   | 111.3%        |
| Dividend yield range    | 0%            |   | 0%            |
| Risk-free interest rate | 1.53%         |   | 2.16%         |

| 9.   | Liabilities Subject to Compromise |
|----------------|-----------------------------------|

|                                                   |   | At            |      |   | At                     |   |
|--------------------------------------------------------|--------|---------------|-----------|--------|------------------------|--------|
|                                                   |   | June 18, 2011 |      |   | February 26, 2011 |   |
| Accounts payable                                       |   | $             | 204,044   |   |                   | $      | 212,135 |   |
| Accrued salaries, wages, and benefits                  |   |          | 10,941    |   |                   |   | 10,939 |   |
| Self-insurance reserves                                |   |          | 396,260   |   |                   |   | 400,170 |   |
| Closed locations reserves                              |   |          | 11,354    |   |                   |   | 50,550 |   |
| Damages claim for rejected leases                      |   |          | 168,796   |   |                   |   | 106,642 |   |
| Pension withdrawal liabilities                         |   |          | 112,613   |   |                   |   | 97,196 |   |
| GHI liability for employee benefits                    |   |          | 96,701    |   |                   |   | 94,281 |   |
| Accrued occupancy related costs for open stores        |   |          | 22,200    |   |                   |   | 24,523 |   |
| Deferred income                                        |   |          | 34,043    |   |                   |   | 74,394 |   |
| Deferred real estate income                            |   |          | 34,995    |   |                   |   | 89,309 |   |
| Accrued audit, legal and other                         |   |          | 6,886     |   |                   |   | 8,118 |   |
| Accrued interest                                       |   |          | 43,021    |   |                   |   | 33,921 |   |
| Other postretirement and postemployment benefits       |   |          | 41,831    |   |                   |   | 41,655 |   |
| Other accruals                                         |   |          | 9,310     |   |                   |   | 8,005 |   |
| Pension plan benefits                                  |   |          | 127,659   |   |                   |   | 125,000 |   |
| Deferred rent liabilities                              |   |          | 51,524    |   |                   |   | 56,287 |   |
| Unfavorable lease liabilities                          |   |          | 825       |   |                   |   | 4,201 |   |
| Other noncurrent liabilities                           |   |          | 10,678    |   |                   |   | 11,316 |   |
| 5.125% Convertible Senior Notes, due June 15, 2011     |   |          | 165,000   |   |                   |   | 165,000 |   |
| Related Party Promissory Note, due August 18, 2011     |   |          | 10,000    |   |                   |   | 10,000 |   |
| 9.125% Senior Notes, due December 15, 2011             |   |          | 12,840    |   |                   |   | 12,840 |   |
| 6.750% Convertible Senior Notes, due December 15, 2012 |   |          | 255,000   |   |                   |   | 255,000 |   |
| 11.375% Senior Secured Notes, due August 1, 2015       |   |          | 260,000   |   |                   |   | 260,000 |   |
| 9.375% Notes, due August 1, 2039                       |   |          | 200,000   |   |                   |   | 200,000 |   |
| Other debt                                             |   |          | 2,525     |   |                   |   | 2,714 |   |
| Obligations under capital leases                       |   |          | 110,337   |   |                   |   | 121,058 |   |
| Real estate liabilities                                |   |          | 390,029   |   |                   |   | 399,480 |   |
| Total liabilities subject to compromise                |   | $             | 2,789,412 |   |                   | $      | 2,874,734 |   |

----

----

|                                            |   | For the 16 Weeks Ended |   |
|-------------------------------------------------|--------|------------------------|--------|
|                                            |   | June 18, 2011          |   |   | June 19, 2010 |   |
| Stock options                                   |   | $                      | 756    |   |   | $ | (368 | ) |
| Restricted stock units                          |   |                   | 199    |   |   |   | 231 |   |
| Performance restricted stock units              |   |                   | -      |   |   |   | (973 | ) |
| Common stock granted to Directors               |   |                   | (464   | ) |   |   | 249 |   |
| Total stock-based compensation expense (income) |   | $                      | 491    |   |   | $ | (861 | ) |

----

|                           |   | For the 16 Weeks Ended |   |
|--------------------------------|--------|------------------------|--------|
|                           |   | June 18, 2011          |   |   | June 19, 2010 |   |
| Service cost                   |   | $                      | 1,998  |   |   | $ | 2,158 |   |
| Interest cost                  |   |                   | 8,837  |   |   |   | 8,929 |   |
| Expected return on plan assets |   |                   | (9,795 | ) |   |   | (8,853 | ) |
| Amortization of:               |   |                   |   |   |   |   |   |   |
| Net prior service cost         |   |                   | 28     |   |   |   | 81 |   |
| Actuarial loss                 |   |                   | 539    |   |   |   | 585 |   |
| Special termination benefits   |   |                   | -      |   |   |   | 50 |   |
| Net pension cost               |   | $                      | 1,607  |   |   | $ | 2,950 |   |

|                             |   | For the 16 Weeks Ended |   |
|----------------------------------|--------|------------------------|--------|
|                             |   | June 18, 2011          |   |   | June 19, 2010 |   |
| Service cost                     |   | $                      | 233    |   |   | $ | 201 |   |
| Interest cost                    |   |                   | 575    |   |   |   | 571 |   |
| Amortization of:                 |   |                   |   |   |   |   |   |   |
| Net prior service credit         |   |                   | -      |   |   |   | (264 | ) |
| Actuarial gain                   |   |                   | (85    | ) |   |   | (150 | ) |
| Net postretirement benefits cost |   | $                      | 723    |   |   | $ | 358 |   |

----

|                                                         |   | For the 16 Weeks Ended |   |
|--------------------------------------------------------------|--------|------------------------|--------|
|                                                         |   | June 18, 2011          |   |   | June 19, 2010 |   |
| $800 million Debtor-in-Possession Credit Agreement           |   | $                      | 11,469 |   |   | $ | - |   |
| $655 million Credit Agreement                                |   |                   | 711    |   |   |   | 4,005 |   |
| Related Party Promissory Note, due Aug. 18, 2011             |   |                   | -      |   |   |   | 187 |   |
| 11.375% Senior Secured Notes, due Aug. 1, 2015               |   |                   | 9,100  |   |   |   | 9,150 |   |
| 9.125% Senior Notes, due Dec. 15, 2011                       |   |                   | -      |   |   |   | 360 |   |
| 5.125% Convertible Senior Notes, due June 15, 2011           |   |                   | -      |   |   |   | 2,601 |   |
| 6.750% Convertible Senior Notes, due Dec. 15, 2012           |   |                   | -      |   |   |   | 5,295 |   |
| 9.375% Notes, due August 1, 2039                             |   |                   | -      |   |   |   | 5,815 |   |
| Obligations under capital leases and real estate liabilities |   |                   | 16,262 |   |   |   | 15,442 |   |
| Self-insurance and GHI interest                              |   |                   | 6,933  |   |   |   | 5,119 |   |
| GHI discount rate adjustment and COLI non-cash interest      |   |                   | 3,641  |   |   |   | 3,889 |   |
| Amortization of deferred financing fees and discounts        |   |                   | 332    |   |   |   | 8,734 |   |
| Other                                                        |   |                   | 6      |   |   |   | 575 |   |
| Subtotal                                                     |   |                   | 48,454 |   |   |   | 61,172 |   |
| Interest and dividend income                                 |   |                   | -      |   |   |   | (30 | ) |
| Interest expense, net                                        |   | $                      | 48,454 |   |   | $ | 61,142 |   |

----

| 14.   | Reorganization Items, Net |
|-----------------|---------------------------|

|                                                                                        |   | For the 16 Weeks |    |
|---------------------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                                        |   | Ended            |    |
|                                                                                        |   | June 18, 2011    |    |
| Professional fees, net                                                                      |   | $                | (17,168 | ) |
| US Trustee fees                                                                             |   |             | (255    | ) |
| Write-off of balance sheet items related to rejected contracts, net - continuing operations |   |             | 30,513  |   |
| C & S contract settlement                                                               |   |             | 34,139  |   |
| Reduction of closed locations reserves - continuing operations                              |   |             | 30,649  |   |
| Reorganization items, net - continuing operations                                           |   |             | 77,878  |   |
| Write-off of real estate liabilities - discontinued operations                              |   |             | 25,799  |   |
| Reduction of closed locations reserves - discontinued operations                            |   |             | 8,395   |   |
| Provision for income taxes for reorganization items, net – discontinued operations    |   |             | (14,361 | ) |
| Total reorganization items, net                                                             |   | $                | 97,711  |   |

----

----

|                                       |   | As Reported |     | Adjustment |   | As Revised |
|--------------------------------------------|--------|-------------|----------|------------|--------|------------|
| Benefit from (provision for) income taxes  |   | $           | 3,798    |       |   | $          | 33,146 |   |   | $ | 36,944 |   |
| Loss from continuing operations            |   |        | (673,400 | )          |   |       | 33,146 |   |   |   | (640,254 | ) |
| Income (loss) from discontinued operations |   |        | 74,825   |       |   |       | (33,146 | ) |   |   | 41,679 |   |
|                                       |   |        |     |       |   |       |   |   |   |   |   |   |
| Net (loss) income per share - basic        |   |        | (11.45   | )     |   |       | 0.01 |   |   |   | (11.44 | )  |

----

|                                            |   | For the 16 Weeks Ended June 18, 2011 |    |
|-------------------------------------------------|--------|--------------------------------------|---------|
|                                            |   | Balance at                           |    |   | Interest |   |   |   |   |   |   |   |   | Balance at |   |
|                                            |   | 2/26/2011                            |    |   | Accretion (1) |   |   | Adjustments(2) |   |   | Utilization(3) |   |   | 6/18/2011 |   |
| 2007 Events                                     |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                                       |   | $                                    | 49,317  |   |   | $ | 80 |   |   | $ | (6,716 | ) |   | $ | - |   |   | $ | 42,681 |   |
| Pension withdrawal                              |   |                                 | 57,581  |   |   |   | 1,079 |   |   |   | - |   |   |   | - |   |   |   | 58,660 |   |
|      2007 events total |   |                                 | 106,898 |   |   |   | 1,159 |   |   |   | (6,716 | ) |   |   | - |   |   |   | 101,341 |   |
|                                            |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2005 Event                                      |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                                       |   |                                 | 21,390  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,390 |   |
|                                            |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2003 Events                                     |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                                       |   |                                 | 8,451   |   |   |   | 12 |   |   |   | (1,641 | ) |   |   | (35 | ) |   |   | 6,787 |   |
|      Total             |   | $                                    | 136,739 |   |   | $ | 1,171 |   |   | $ | (8,357 | ) |   | $ | (35 | )  |   | $ | 129,518 |   |

|   |  (1) | The additions to occupancy and severance represent the interest accretion on future occupancy costs and future obligations for early withdrawal from multi-employer union pension plans which were recorded at present value at the time of the original charge.   Interest accretion is recorded as a component of “Loss from operations of discontinued businesses” in our Consolidated Statements of Operations. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | At each balance sheet date, we assess the adequacy of the balance of the remaining liability to determine if any adjustments are required as a result of changes in circumstances and/or estimates.   These adjustments are recorded as a component of “Loss from operations of discontinued business” in our Consolidated Statements of Operations. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Occupancy utilization represents payments made during those periods for rent, common area maintenance and real estate taxes.  Pension withdrawal utilization represents payments made to the union pension fund during the period. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                             |   | 2007 Events |    |   | 2005 Event |   |   | 2003 Event |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
| Total severance payments made to date                                                                            |   | $           | 37,089  |   |       | $      | 2,650  |       |   | $      | 22,528 |   |   | $ | 62,267 |   |
| Expected future pension withdrawal payments                                                                      |   |        | 58,660  |   |       |   | -      |       |   |   | -      |   |   |   | 58,660 |   |
| Total severance and pension withdrawal paymentsexpected to be incurred                                           |   |        | 95,749  |   |       |   | 2,650  |       |   |   | 22,528 |   |   |   | 120,927 |   |
| Total occupancy payments made to date                                                                            |   |        | 92,140  |   |       |   | 60,866 |       |   |   | 34,119 |   |   |   | 187,125 |   |
| Expected future occupancy payments,                                                                              |   |        |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| excluding interest accretion                                                                                     |   |        | 42,681  |   |       |   | 21,390 |       |   |   | 6,787  |   |   |   | 70,858 |   |
| Total occupancy payments expected to be incurred,                                                                |   |        |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| excluding interest accretion                                                                                     |   | $           | 134,821 |   |       | $      | 82,256 |       |   | $      | 40,906 |   |   | $ | 257,983 |   |
|                                                                                                             |   |        |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Total severance and occupancy payments made to date                                                              |   | $           | 129,229 |   |       | $      | 63,516 |       |   | $      | 56,647 |   |   | $ | 249,392 |   |
| Expected future pension withdrawal and occupancy payments                                                        |   |        |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| expected to be incurred, excluding interest accretion                                                            |   |        | 101,341 |   |       |   | 21,390 |       |   |   | 6,787  |   |   |   | 129,518 |   |
|                                                                                                             |   |        |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Total severance, pension withdrawal and occupancy payments expected to be incurred, excluding interest accretion |   | $           | 230,570 |   |       | $      | 84,906 |       |   | $      | 63,434 |   |   | $ | 378,910 |   |

|                              |   | June 18, 2011     |    |
|-----------------------------------|--------|-------------------|---------|
|                              |   | 2007 Events       |    |   | 2005 Event |   |   | 2003 Events |   |   | Total |   |
| Other accruals                    |   | $                 | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Other non-current liabilities     |   | $                 | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Liabilities subject to compromise |   | $                 | 101,341 |   |   | $ | 21,390 |   |   | $ | 6,787 |   |   | $ | 129,518 |   |
|                              |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | February 26, 2011 |    |
|                              |   | 2007 Events       |    |   | 2005 Event |   |   | 2003 Events |   |   | Total |   |
| Other accruals                    |   | $                 | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Other non-current liabilities     |   | $                 | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Liabilities subject to compromise |   | $                 | 106,898 |   |   | $ | 21,390 |   |   | $ | 8,451 |   |   | $ | 136,739 |   |

----

|                                    |   | For the 16 Weeks Ended June 18, 2011 |   |
|-----------------------------------------|--------|--------------------------------------|--------|
|                                    |   | Balance at                           |   |   | Interest |   |   |   |   |   |   |   |   | Balance at |   |
|                                    |   | 2/26/2011                            |   |   | Accretion (1) |   |   | Adjustments(2) |   |   | Utilization(3) |   |   | 6/18/2011 |   |
| 2011 Event                              |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing Operations                   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                               |   | $                                    | -      |   |   | $ | - |   |   | $ | 33,960 |   |   | $ | (1,264 | ) |   | $ | 32,696 |   |
| Severance                               |   |                                 | 2,738  |   |   |   | - |   |   |   | 2,948 |   |   |   | (945 | ) |   |   | 4,741 |   |
| 2011 event total                        |   |                                 | 2,738  |   |   |   | - |   |   |   | 36,908 |   |   |   | (2,209 | ) |   |   | 37,437 |   |
|                                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010 Event                              |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing Operations                   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                               |   |                                 | 29,353 |   |   |   | - |   |   |   | - |   |   |   | (168 | ) |   |   | 29,185 |   |
| Health benefits                         |   |                                 | 239    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 239 |   |
| 2010 event total                        |   |                                 | 29,592 |   |   |   | - |   |   |   | - |   |   |   | (168 | ) |   |   | 29,424 |   |
|                                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2005 Event                              |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing Operations                   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Health benefits                         |   |                                 | 445    |   |   |   | - |   |   |   | - |   |   |   | (60 | ) |   |   | 385 |   |
| 2005 event total                        |   |                                 | 445    |   |   |   | - |   |   |   | - |   |   |   | (60 | ) |   |   | 385 |   |
|                                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2001 Event                              |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing Operations                   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                               |   |                                 | 2,127  |   |   |   | - |   |   |   | 166 |   |   |   | - |   |   |   | 2,293 |   |
|                                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                               |   |                                 | 1,774  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,774 |   |
| 2001 event total                        |   |                                 | 3,901  |   |   |   | - |   |   |   | 166 |   |   |   | - |   |   |   | 4,067 |   |
|                                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1998 Event                              |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing Operations                   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                               |   |                                 | 3,400  |   |   |   | 8 |   |   |   | - |   |   |   | (118 | ) |   |   | 3,290 |   |
| Pension withdrawals and health benefits |   |                                 | 524    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 524 |   |
| 1998 event total                        |   |                                 | 3,924  |   |   |   | 8 |   |   |   | - |   |   |   | (118 | ) |   |   | 3,814 |   |
|                                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                   |   | $                                    | 40,600 |   |   | $ | 8 |   |   | $ | 37,074 |   |   | $ | (2,555 | ) |   | $ | 75,127 |   |

| (1)   | The additions to occupancy represent the interest accretion on future occupancy costs which were recorded at present value at the time of the original charge.   These adjustments are recorded to “Store operating, general and administrative expense” and "Reorganization items, net" for continuing operations and “Loss from operations of discontinued businesses” for discontinued operations in our Consolidated Statements of Operations.  |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | At each balance sheet date, we assess the adequacy of the balance to determine if any adjustments are required as a result of changes in circumstances and/or estimates.   These adjustments are recorded to “Store operating, general and administrative expense” for continuing operations and “Loss from operations of discontinued businesses” for discontinued operations in our Consolidated Statements of Operations. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Occupancy utilization represents payments made during those periods for rent.  Severance and benefits utilization represents payments made to terminated employees during the period. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | 2011   |   |   | 2010   |   |   | 2005   |   |   | 2001   |   |   | 1998   |   |   |   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   | Event  |   |   | Event  |   |   | Event  |   |   | Event  |   |   | Event  |   |   | Total  |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total severance payments made to date  |   | $      | 945    |   |   | $      | 533    |   |   | $      | 49,297 |   |   | $      | 28,205 |   |   | $      | 30,940 |   |   | $ | 109,920 |   |
| Expected future severance payments     |   |   | 4,741  |   |   |   | 239    |   |   |   | 385    |   |   |   | -      |   |   |   | 524 |   |   |   | 5,889 |   |
| Total severance payments expected      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to be incurred                         |   | $      | 5,686  |   |   | $      | 772    |   |   | $      | 49,682 |   |   | $      | 28,205 |   |   | $      | 31,464 |   |   | $ | 115,809 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total occupancy payments made to date  |   | $      | 1,264  |   |   | $      | 957    |   |   | $      | 13,856 |   |   | $      | 67,283 |   |   | $      | 120,090 |   |   | $ | 203,450 |   |
| Expected future occupancy payments,    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| excluding interest accretion           |   |   | 32,696 |   |   |   | 29,185 |   |   |   | -      |   |   |   | 4,067  |   |   |   | 3,290 |   |   |   | 69,238 |   |
| Total occupancy payments expected      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to be incurred, excluding interest     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accretion                              |   | $      | 33,960 |   |   | $      | 30,142 |   |   | $      | 13,856 |   |   | $      | 71,350 |   |   | $      | 123,380 |   |   | $ | 272,688 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total severance and occupancy          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| payments made to date                  |   | $      | 2,209  |   |   | $      | 1,490  |   |   | $      | 63,153 |   |   | $      | 95,488 |   |   | $      | 151,030 |   |   | $ | 313,370 |   |
| Expected future severance and          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| occupancy payments, excluding          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest accretion                     |   |   | 37,437 |   |   |   | 29,424 |   |   |   | 385    |   |   |   | 4,067  |   |   |   | 3,814 |   |   |   | 75,127 |   |
| Total severance and occupancy payments |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| expected to be incurred, excluding     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest accretion                     |   | $      | 39,646 |   |   | $      | 30,914 |   |   | $      | 63,538 |   |   | $      | 99,555 |   |   | $      | 154,844 |   |   | $ | 388,497 |   |

|                              |   |   |   |   |   |       |   | June 18, 2011 |       |              |   |       |   |   |       |
|-----------------------------------|--------|--------|--------|--------|--------|------------|--------|---------------|------------|-------------------|--------|------------|--------|--------|------------|
|                              |   | 2011   |   |   | 2010   |       |   | 2005          |       |              | 2001   |       |   | 1998   |       |   |   |   |
|                              |   | Event  |   |   | Event  |       |   | Event         |       |              | Event  |       |   | Event  |       |   | Total |   |
| Other accruals                    |   | $      | 4,741  |   |   | $          | -      |          |       | $                 | -      |       |   | $      | -          |   |   | $ | - |   |   | $ | 4,741 |   |
| Other non-current liabilities     |   | $      | -      |   |   | $          | -      |          |       | $                 | -      |       |   | $      | -          |   |   | $ | - |   |   | $ | - |   |
| Liabilities subject to compromise |   | $      | 32,696 |   |   | $          | 29,424 |          |       | $                 | 385    |       |   | $      | 4,067      |   |   | $ | 3,814 |   |   | $ | 70,386 |   |
|                              |   |   |   |   |   |       |   |          |       |              |   |       |   |   |       |   |   |   |   |   |   |   |   |   |
|                              |   |   |   |   |   |       |   |          |       |              |   |       |   |   |       |   |   |   |   |   |   |   |   |   |
|                              |   |   |   |   |   |       |   |          |       | February 26, 2011 |   |       |   |   |       |   |   |   |   |
|                              |   |   |   |   |   |  2010 |   |          |  2005 |              |   |  2001 |   |   | 1998  |   |   |   |   |
|                              |   |   |   |   |   | Event      |   |          | Event      |              |   | Event      |   |   | Event      |   |   | Total |   |
| Other accruals                    |   |   |   |   |   | $          | -      |          |       | $                 | -      |       |   | $      | -          |   |   | $ | - |   |   | $ | - |   |
| Other non-current liabilities     |   |   |   |   |   | $          | -      |          |       | $                 | -      |       |   | $      | -          |   |   | $ | - |   |   | $ | - |   |
| Liabilities subject to compromise |   |   |   |   |   | $          | 29,592 |          |       | $                 | 445    |       |   | $      | 3,901      |   |   | $ | 3,924 |   |   | $ | 37,862 |   |

|                               | 16 Weeks Ended |   | 16 Weeks Ended   |
|------------------------------------|----------------|--------|------------------|
|                               | June 18, 2011  |   | June 19, 2010    |
| Stock options                      | 5,096,413      |   |  1,988,469  |
| Warrants                           | 6,965,858      |   |  686,277    |
| Performance restricted stock units | -              |   |  218,294    |
| Restricted stock units             | 719,533        |   |  1,080,710  |
| Convertible debt                   | 11,157,569     |   | 8,086,769        |
| Financing warrant                  | 11,157,569     |   | 11,278,988       |
| Preferred stock                    | 35,804,000     |   |  35,000,000 |

----

|                                           |   | 16 Weeks Ended |       |   | 16 Weeks Ended |   |
|------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                           |   | June 18, 2011  |       |   | June 19, 2010  |   |
|                                           |   |           |       |   |           |   |
| Loss from continuing operations                |   | $              | (177,791   | )      |           | $      | (115,607 | ) |
| Preferred stock dividends                      |   |           | -          |   |           |   | (4,308 | ) |
| Beneficial conversion feature amortization     |   |           | (1,482     | )      |           |   | (1,481 | ) |
| Loss from continuing operations - basic        |   |           | (179,273   | )      |           |   | (121,396 | ) |
|                                           |   |           |       |   |           |   |   |   |
| Adjustments for convertible debt (1)           |   |           | -          |   |           |   | (10,655 | ) |
| Adjustments on Other financial liabilities (2) |   |           | -          |   |           |   | (8,277 | ) |
| Loss from continuing operations–diluted  |   | $              | (179,273   | )      |           | $      | (140,328 | ) |
|                                           |   |           |       |   |           |   |   |   |
| Weighted average common shares outstanding     |   |           | 53,852,470 |   |           |   | 55,926,065 |   |
| Share lending agreement (3)                    |   |           | -          |   |           |   | (2,427,944 | ) |
| Common shares outstanding–basic          |   |           | 53,852,470 |   |           |   | 53,498,121 |   |
|                                           |   |           |       |   |           |   |   |   |
| Effect of dilutive securities:                 |   |           |       |   |           |   |   |   |
| Convertible debt (1)                           |   |           | -          |   |           |   | 3,192,219 |   |
| Convertible financial liabilities (2)          |   |           | -          |   |           |   | (26,165,689 | ) |
| Common shares outstanding–diluted        |   |           | 53,852,470 |   |           |   | 30,524,651 |   |

|    (1) | We have debt instruments with a bifurcated conversion feature that were recorded at a significant discount.  (Refer to Note 8 – Indebtedness and Other Financial Liabilities).  For purposes of determining if an application of the “if-converted method” to these convertible instruments produces a dilutive result, we consider the combined impact of the numerator and denominator adjustments, including a numerator adjustment for gains and losses, which would have been incurred had the instruments been converted on the first day of the period presented.  |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    (2) | Our Series B Warrants are classified as a liability because a third party has the right to determine their cash or share settlement.    (Refer to Note 8 – Indebtedness and Other Financial Liabilities).  These warrants are marked-to-market in our Consolidated Statements of Operations.  For example, in periods when the market price of our common stock decreases, our income from continuing operations is increased.   For purposes of determining if an application of the treasury stock method produces a dilutive result, we assume proceeds are used to repurchase common stock and we adjust the numerator similar to the adjustments required under the “if-converted” method.  We consider the combined impact of the numerator and denominator adjustments, including a denominator adjustment to reduce shares, even when the average market price of our common stock for the period is below the warrant’s strike price.  |
|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   (3) | As of June 19, 2010, we had 5,634,002 of loaned shares under our share lending agreements, which were considered issued and outstanding.  The obligation of the financial institutions to return the borrowed shares has been accounted for as prepaid forward contract and, accordingly, shares underlying this contract are removed from the computation of basic and diluted earnings per share, unless the borrower defaults on returning the related shares.  On September 15, 2008, Lehman Europe, who is a party to a 3,206,058 share lending agreement with our Company filed under chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court and/or commenced equivalent proceedings in jurisdictions outside of the United States (collectively, the “Lehman Bankruptcy”).  As such, we have included these loaned shares as issued and outstanding effective September 15, 2008 for purposes of computing our basic and diluted weighted average shares and (loss) income per share.  During fiscal 2009, Bank of America, N.A., who is a party to our share lending agreement, returned 2,500,000 shares, eliminating our obligation to lend additional shares to them in the future.  The returned shares were immediately retired, reducing our issued and outstanding shares. For the 16 weeks ended June 19, 2010, weighted average common shares relating to share lending agreements of 2,427,944 were excluded from the computation of earnings per share. As of February 26, 2011, there were no shares outstanding with Bank of America, N.A. |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        |   | Sales by Category      |      |
|-------------|--------|------------------------|-----------|
|        |   | For the 16 Weeks Ended |      |
|        |   | June 18, 2011          |      |   | June 19, 2010 |   |
| Grocery (1) |   | $                      | 1,537,285 |   |   | $ | 1,758,844 |   |
| Meat (2)    |   |                   | 428,711   |   |   |   | 491,482 |   |
| Produce (3) |   |                   | 264,650   |   |   |   | 314,604 |   |
| Total       |   | $                      | 2,230,646 |   |   | $ | 2,564,930 |   |

|  (1)   |  The grocery category includes grocery, frozen foods, dairy, general merchandise/health and beauty aids, wine, beer & spirits, and pharmacy. |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The meat category includes meat, deli, bakery and seafood. |
|-----------------|------------------------------------------------------------|

| (3)   | The produce category includes produce and floral. |
|-----------------|---------------------------------------------------|

|                                                |   | For the 16 Weeks Ended |      |
|-----------------------------------------------------|--------|------------------------|-----------|
|                                                |   | June 18, 2011          |      |   | June 19, 2010 |   |
| Sales                                               |   |                   |      |   |   |   |
| Fresh                                               |   | $                      | 1,127,572 |   |   | $ | 1,278,569 |   |
| Pathmark                                            |   |                   | 931,063   |   |   |   | 1,111,401 |   |
| Gourmet                                             |   |                   | 82,793    |   |   |   | 82,872 |   |
| Other                                               |   |                   | 89,218    |   |   |   | 92,088 |   |
| Total sales                                         |   | $                      | 2,230,646 |   |   | $ | 2,564,930 |   |
|                                                |   |                   |      |   |   |   |   |   |
| Segment (loss) income                               |   |                   |      |   |   |   |   |   |
| Fresh                                               |   | $                      | (19,390   | ) |   | $ | 13,472 |   |
| Pathmark                                            |   |                   | (54,280   | ) |   |   | (24,808 | ) |
| Gourmet                                             |   |                   | 6,451     |   |   |   | 6,511 |   |
| Other                                               |   |                   | (277      | ) |   |   | 737 |   |
| Total segment loss                                  |   |                   | (67,496   | ) |   |   | (4,088 | ) |
| Corporate(4)                                        |   |                   | (16,476   | ) |   |   | (47,242 | ) |
| Reconciling items (5)                               |   |                   | (137,976  | ) |   |   | (11,272 | ) |
| Loss from operations                                |   |                   | (221,948  | ) |   |   | (62,602 | ) |
| Nonoperating income                                 |   |                   | 83        |   |   |   | 8,277 |   |
| Interest expense, net                               |   |                   | (48,454   | ) |   |   | (61,142 | ) |
| Reorganization items, net                           |   |                   | 77,878    |   |   |   | - |   |
| Loss from continuing operations before income taxes |   | $                      | (192,441  | ) |   | $ | (115,467 | ) |

----

|                                                                      |   |                   |   |   |          |   |
|---------------------------------------------------------------------------|--------|------------------------|--------|--------|---------------|--------|
|                                                                      |   | For the 16 Weeks Ended |   |
|                                                                      |   | June 18, 2011          |   |   | June 19, 2010 |   |
| Segment depreciation and amortization – continuing operations       |   |                   |   |   |          |   |
| Fresh                                                                     |   | $                      | 20,418 |   |          | $      | 23,392 |   |
| Pathmark                                                                  |   |                   | 22,200 |   |          |   | 26,771 |   |
| Gourmet                                                                   |   |                   | 2,170  |   |          |   | 2,751 |   |
| Other                                                                     |   |                   | 1,655  |   |          |   | 1,663 |   |
| Total segment depreciation and amortization – continuing operations |   |                   | 46,443 |   |          |   | 54,577 |   |
| Corporate                                                                 |   |                   | 13,001 |   |          |   | 15,802 |   |
| Total depreciation and amortization – continuing operations         |   |                   | 59,444 |   |          |   | 70,379 |   |
| Discontinued operations                                                   |   |                   | -      |   |          |   | - |   |
| Total company depreciation and amortization                               |   | $                      | 59,444 |   |          | $      | 70,379 |   |

|  (4) |  Represents a $21.4 million decrease in corporate costs attributable to store-related activities, primarily benefits and occupancy costs which are not allocated to segments and a $9.4 million decline in corporate and administrative costs. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Reconciling items, which are not included in segment income, consist of the following: |
|-----|----------------------------------------------------------------------------------------|

|                                                |   | For the 16 Weeks Ended |     |
|-----------------------------------------------------|--------|------------------------|----------|
|                                                |   | June 18, 2011          |     |   | June 19, 2010 |   |
|                                                |   |                   |     |   |   |   |
| Goodwill, trademark and long-lived asset impairment |   | $                      | (55,418  | ) |   | $ | (5,398 | ) |
| Net restructuring and other                         |   |                   | (6,311   | ) |   |   | (3,932 | ) |
| Real estate related activity                        |   |                   | (53,725  | ) |   |   | (1,947 | ) |
| Stock-based compensation (expense) income           |   |                   | (491     | ) |   |   | 861 |   |
| Pension withdrawal costs                            |   |                   | (13,923  | ) |   |   | - |   |
| LIFO adjustment                                     |   |                   | (1,122   | ) |   |   | (856 | ) |
| C&S contract effect                             |   |                   | (6,986   | )  |   |   | - |   |
| Total reconciling items                             |   | $                      | (137,976 | ) |   | $ | (11,272 | ) |

----

| ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|------------------------------------------------------------------------------------------------------------|

| • | Overview – a general description of our business and segment structure. |
|---------|-------------------------------------------------------------------------------|

| •   | Operating Results – a discussion of the value drivers of our business; measurements; opportunities; challenges and risks; and initiatives. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Outlook – a discussion of certain trends or business initiatives for the remainder of fiscal 2011 to assist in understanding the business. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Results of Operations and Liquidity and Capital Resources – a discussion of results for the 16 weeks ended June 18, 2011 compared to the 16 weeks ended June 19, 2010 and current and expected future liquidity. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Critical Accounting Estimates – a discussion of significant estimates made by Management. |
|---------------------|-------------------------------------------------------------------------------------------------|

| • | Market Risk – a discussion of the impact of market changes in our Consolidated financial statements. |
|---------|------------------------------------------------------------------------------------------------------------|

----

|                                       |   | 16 Weeks Ended                                       |    |    | 16 Weeks Ended |   |    | Favorable     |   |   |     |    |
|--------------------------------------------|--------|------------------------------------------------------|---------|---------|----------------|--------|---------|---------------|--------|--------|----------|---------|
|                                       |   | June 18, 2011                                        |    |    | June 19, 2010  |   |    | (unfavorable) |   |   | % Change |    |
|                                       |   | (in millions, except percentages and per share data) |    |
|                                       |   |                                                 |    |    |           |   |    |          |   |   |     |    |
| Sales                                      |   | $                                                    | 2,230.6 |    |           | $      | 2,564.9 |          |   | $      | (334.3   | )       |   |   | (13.0 | )% |
| Decrease in comparable store sales         |   |                                                 | (4.2    | )%      |           |   | (7.2    | )%            |   | NA     |     |    | NA |   |
| Loss from continuing operations            |   | $                                                    | (177.8  | )       |           | $      | (115.6  | )             |   | $      | (62.2    | )       |   |   | (53.8 | )% |
|                                       |   |                                                 |    |    |           |   |    |          |   |   |     |    |   |   |   |   |
| Income (loss) from discontinued operations |   | $                                                    | 20.6    |    |           | $      | (7.0    | )             |   | $      | 27.6     |    |   | >100.0 |  % |
| Net loss                                   |   | $                                                    | (157.2  | )       |           | $      | (122.6  | )             |   | $      | (34.6    | )       |   |   | (28.2 | )% |
| Net loss per share - basic                 |   | $                                                    | (2.95   | )  |           | $      | (2.40   | )             |   | $      | (0.55    | )  |   |   | (22.9 | )% |
| Net loss per share - diluted               |   | $                                                    | (2.95   | )       |           | $      | (4.83   | )             |   | $      | 1.88     |    |   |   | 38.9 |  % |

|        |   | For the 16 Weeks Ended |      |
|-------------|--------|------------------------|-----------|
|        |   | June 18, 2011          |      |   | June 19, 2010 |   |
|        |   | (in thousands)         |      |
| Fresh       |   | $                      | 1,127,572 |   |   | $ | 1,278,569 |   |
| Pathmark    |   |                   | 931,063   |   |   |   | 1,111,401 |   |
| Gourmet     |   |                   | 82,793    |   |   |   | 82,872 |   |
| Other       |   |                   | 89,218    |   |   |   | 92,088 |   |
| Total sales |   | $                      | 2,230,646 |   |   | $ | 2,564,930 |   |

| Gross margin of $622.2 million decreased 189 basis points as a percentage of sales to 27.89% for the first quarter of fiscal 2011 from gross margin of $763.8 million or 29.78% for the first quarter of fiscal 2010 reflecting lower margins across all of our operating segments due to the lack of success of our lower price initiative as described above in SALES. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The following table details the dollar impact of items affecting the gross margin dollar decrease from the first quarter of fiscal 2010 to the first quarter of fiscal 2011 (in millions): |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   | Sales Volume |   |   | Gross Margin Rate |   |   | Total |   |
|---------------|--------|--------------|--------|--------|-------------------|--------|--------|-------|--------|
| Total Company |   | $            | (99.5  | )      |              | $      | (42.1  | )     |   | $ | (141.6 | ) |

| Our Store operating, general and administrative (“SG&A”) expense was $788.7 million or 35.36% as a percentage of sales for the first quarter of fiscal 2011, as compared to $821.0 million or 32.01% as a percentage of sales for the first quarter of fiscal 2010. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| SG&A expenses for the first quarter of fiscal 2011 included (i) real estate related costs of $56.5 million, or 254 basis points, of which $55.7 million was primarily attributed to the closing of 32 stores during the 16 weeks ended June 18, 2011 (ii) pension withdrawal costs of $13.9 million, or 62 basis points (iii) net restructuring and other costs of $3.5 million, or 16 basis points and (iv) net stock-based compensation related expense of $0.5 million, or 2 basis points. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| SG&A expenses for the first quarter of fiscal 2010 included (i) net restructuring and other costs of $3.9 million, or 15 basis points and (ii) real estate related costs of $1.9 million, or 8 basis points.  These costs were partially offset by net stock-based compensation related income of $0.9 million, or 3 basis points, primarily due to forfeitures. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |   | For the 16 Weeks Ended |    |
|--------------------|--------|------------------------|---------|
|               |   | June 18, 2011          |    |   | June 19, 2010 |   |
|               |   | (in thousands)         |    |
| Fresh              |   | $                      | (19,390 | ) |   | $ | 13,472 |   |
| Pathmark           |   |                   | (54,280 | ) |   |   | (24,808 | ) |
| Gourmet            |   |                   | 6,451   |   |   |   | 6,511 |   |
| Other              |   |                   | (277    | ) |   |   | 737 |   |
| Total segment loss |   | $                      | (67,496 | ) |   | $ | (4,088 | ) |

----

| REORGANIZATION ITEMS, NET |
|---------------------------|

----

|                                  | For the 16 Weeks Ended |
|---------------------------------------|------------------------|
|                                  | June 18, 2011          |   | June 19, 2010 |
| Net cash used in operating activities | $(30,915)              |   |  $(58,265) |
| Net cash used in investing activities | (1,551)                |   |  (17,689) |
| Net cash used in financing activities | (8,010)                |   |  (5,710) |

| • | An increase in the current portion of our long-term debt due to the reclassification of our term loan under the DIP Credit Agreement, due June 14, 2012; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | A decline in inventories primarily related to lower sales volume and a reduced number of open locations; |
|---------|----------------------------------------------------------------------------------------------------------|

| •• | A decrease in accounts receivable, primarily related to 1) lower sales, 2) settlement of C&S pre-petition accounts receivable, as well as, 3) an improvement in the collection rate and the related vendor funding of receivables from certain vendors since the Bankruptcy Filing; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | An increase in accrued taxes attributed to timing of payments; and |
|---------|--------------------------------------------------------------------|

| •• | An increase in other accruals resulting from the current portion of the allowable claim for damages pertaining to rejected leases that are expected to be settled upon our Company’s emergence from the Bankruptcy Filing. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | A decrease in accounts payable attributed to the payment of certain pre-petition liabilities; |
|---------|-----------------------------------------------------------------------------------------------|

| •• | A decline in accrued salaries, wages and benefits, primarily attributable to a reversal of the incentive compensation accrued for our executive and non-executive employees based on our operating results; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •  | An increase in other current assets resulting from the reclassification of the Southern stores to be sold in July 2011 from Property to Assets held for sale in our Consolidated Balance Sheets. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | At            |      |   | At            |   |
|-----------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                      |   | June 18, 2011 |      |   | Feb. 26, 2011 |   |
| Debtor-in-Possession Credit Agreement, due June 14, 2012  |   | $             | 350,000   |   |          | $      | 350,000 |   |
| Related Party Promissory Note, due August 18, 2011        |   |          | 10,000    |   |          |   | 10,000 |   |
| 5.125% Convertible Senior Notes, due June 15, 2011(1)     |   |          | 165,000   |   |          |   | 165,000 |   |
| 9.125% Senior Notes, due December 15, 2011(1)             |   |          | 12,840    |   |          |   | 12,840 |   |
| 6.750% Convertible Senior Notes, due December 15, 2012(1) |   |          | 255,000   |   |          |   | 255,000 |   |
| 11.375% Senior Secured Notes, due August 1, 2015          |   |          | 260,000   |   |          |   | 260,000 |   |
| 9.375% Notes, due August 1, 2039(1)                       |   |          | 200,000   |   |          |   | 200,000 |   |
| Other                                                     |   |          | 2,438     |   |          |   | 2,544 |   |
|                                                      |   |          | 1,255,278 |   |          |   | 1,255,384 |   |
| Less current portion of long-term debt                    |   |          | (350,000  | )      |          |   | (159 | ) |
| Less long-term debt - subject to compromise               |   |          | (905,278  | )      |          |   | (905,225 | ) |
| Long-term debt                                            |   | $             | -         |   |          | $      | 350,000 |   |

|  (1)   |  Represents public debt obligations. |
|-----------------------|-------------------------------------------|

|   | ·    |   | the DIP Lenders agreed to lend up to $800.0 million in the form of a $350.0 million term loan and a $450.0 million revolving credit facility with a $250.0 million sublimit for letters of credit, in each case subject to the terms and conditions therein; |
|--------|--------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   |   | our Company’s and the Subsidiary Borrower’s obligations under the DIP Credit Agreement and the other specified loan documents are guaranteed by our Company’s certain other subsidiaries that are Debtors (“Subsidiary Guarantors” and, together with our Company and the Subsidiary Borrowers, the “Loan Parties”); and |
|--------|--------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   |   | the Loan Parties’ obligations under the DIP Credit Agreement and such other specified loan documents are secured by a security interest in, and lien upon, substantially all of the Loan Parties’ existing and after-acquired personal and real property, having the priority and subject to the terms therein and in the order(s) entered into by the Bankruptcy Court, as applicable. |
|--------|--------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date               | Minimum Cumulative EBITDA                                |
|--------------------|----------------------------------------------------------|
| August 13, 2011    | $         - |
| September 10, 2011 |  10.0                                               |
| October 8, 2011    | 20.0                                                     |
| November 5, 2011   | 35.0                                                     |
| December 3, 2011   | 50.0                                                     |
| December 31, 2011  | 65.0                                                     |
| January 28, 2012   | 90.0                                                     |
| February 25, 2012  | 100.0                                                    |
| March 24, 2012     | 110.0                                                    |
| April 21, 2012     | 125.0                                                    |
| May 19, 2012       |  150.0                                              |
| June 16, 2012      | 175.0                                                    |

----

----

----

----

| ·   | Failure to execute on our turnaround strategy could adversely affect our Company’s liquidity, financial condition and results of operations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As a result of the Bankruptcy Filing, our historical financial information may not be indicative of our future financial performance. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Operating during the Bankruptcy Filing may restrict our ability to pursue our strategic and operational initiatives.  |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

|   |   | · incur indebtedness;                                                      |
|--------|--------|--------------------------------------------------------------------------------------|
|   |   | · incur or create liens;                                                   |
|   |   | · dispose of assets;                                                       |
|   |   | · prepay certain indebtedness and make other restricted payments;          |
|   |   | · enter into sale and leaseback transactions; and                          |
|   |   | · modify the terms of certain indebtedness and certain material contracts. |

| ·   | The Bankruptcy Filing may have an adverse effect on our business and results of operations. |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | We may not be able to remain in compliance with the requirements of the DIP Credit Agreement therefore the lending commitments under the DIP Credit Agreement may be terminated by the DIP Lender. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date               | Minimum Cumulative EBITDA                                |
|--------------------|----------------------------------------------------------|
| August 13, 2011    | $         - |
| September 10, 2011 |  10.0                                               |
| October 8, 2011    | 20.0                                                     |
| November 5, 2011   | 35.0                                                     |
| December 3, 2011   | 50.0                                                     |
| December 31, 2011  | 65.0                                                     |
| January 28, 2012   | 90.0                                                     |
| February 25, 2012  | 100.0                                                    |
| March 24, 2012     | 110.0                                                    |
| April 21, 2012     | 125.0                                                    |
| May 19, 2012       |  150.0                                              |
| June 16, 2012      | 175.0                                                    |

| ·   | If we are unable to implement a plan of reorganization, we may not be able to restructure our Company’s debts and continue as a going concern. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As a result of approval and implementation of a proposed plan, should such occur, certain changes in ownership of our Company could occur, which could adversely affect our ability to utilize our significant net operating loss carry-forwards upon our emergence from the Bankruptcy Filing. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  We may experience increased levels of employee attrition. |
|--------------------|-----------------------------------------------------------------|

| ·   | Trading in our securities during the pendency of the Bankruptcy Filing is highly speculative and poses substantial risks. Our common stock may be cancelled and holders of such common stock may not receive any distribution with respect to, or be able to recover any portion of, their investments. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our common stock and 9 3/8% senior quarterly interest bonds are no longer listed on a national securities exchange and are quoted only on the Pink Sheets, which could negatively affect our stock price, bond price and marketplace liquidity. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Our substantial indebtedness could impair our financial condition and our ability tofulfill our debt obligations, including our obligations under the notes. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | We are affected by increasing labor, benefit and other operating costs and acompetitive labor market and are subject to the risk of unionized labor disruptions. |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may incur additional pension liabilities resulting from the sales or closures of our Company’s stores. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

----

----

----

|   | 10.1* | Supply, Distribution and Related Services Agreement dated May 29, 2011 by and between the Company and C&S Wholesale Grocers, Inc. ** |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Third Amended and Restated Superpriority Debtor-in-Possession Credit Agreement dated as of January 13, 2011 among The Great Atlantic & Pacific Tea Company, Inc. and the other Borrowers party thereto, as Borrowers and the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent (incorporated herein by reference to Exhibit 10.1 to Form 8-K filed on May 10, 2011) |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1* | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|-------|--------------------------------------------------------------------------------------------------------|

|   | 31.2* | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|-------|--------------------------------------------------------------------------------------------------------|

|   | 32* | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | * | Filed with this Form 10-Q |
|--------|---|---------------------------|

|   | ** | Confidential treatment has been requested for certain portions thereof pursuant to a confidential treatment request filed with the Securities and Exchange Commission (the “Commission”) on July 29, 2011.  Such provisions have been filed separately with the Commission. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----