The Pantry Inc. Initial Public Offering of 6,250,000 Shares of Common Stock

Sanford, North Carolina, June 9, 1999 - The Pantry, Inc. (Nasdaq:PTRY) today announced that its initial public offering of common stock was priced at $13.00 per share. The common stock has been approved for trading on the Nasdaq national market system under the symbol "PTRY".

A total of 6,250,000 shares are being offered by the Company. Upon completion of the offering, the Company will have 18,111,478 shares outstanding. In addition, the underwriters have been granted an option to purchase up to an aggregate of 937,500 additional shares solely for the purpose of covering over-allotments, if any.

The proceeds from the offering will be used to repay outstanding debt, to redeem all outstanding preferred stock and pay related accrued dividends, and to make acquisitions during the nine month period following the offering.

Merrill Lynch & Co. is the lead manager of the offering, with Banc of America Securities and Goldman, Sachs & Co. serving as co-managers.

The Pantry is a leading convenience store operator in the southeastern United States and the third largest independently operated convenience store chain in the country. The Company currently operates 1,149 stores in suburban areas of rapidly growing markets, coastal/resort areas and smaller towns located in Florida, North Carolina, South Carolina, Kentucky, Indiana, Tennessee and Virginia. These stores offer a broad selection of merchandise and gasoline as well as ancillary services designed to appeal to the convenience needs of its customers.

This press release is neither an offer to sell nor a solicitation of an offer to buy these securities. The offer is made only by the Prospectus, a copy of which may be obtained from Merrill Lynch & Co., World Financial Center, North Tower, New York, New York, 10281-1320.

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