The Pantry Comments on Impact of Hurricane Katrina; Sees Minimal Damage to Store Base, Reaffirms Fiscal 2005 EPS Guidance

Peter J. Sodini, President and Chief Executive Officer, said,"While the hurricane and its aftermath have been heartbreaking inhuman terms, its direct financial impact on The Pantry in terms ofuninsured property losses or store closings in the affected areas hasbeen minimal. Our business has been affected more broadly by thenationwide disruption of gasoline supplies, but our contractual fuelsupply agreements have enabled us so far to keep our stores relativelywell-supplied. Our merchandise business continues to perform well, andoverall we remain comfortable with our previous fiscal 2005 earningsguidance of between $2.10 and $2.15 per share."

Prior to the hurricane, the Company operated eight stores inLouisiana, 53 in Mississippi, and 24 in Alabama, but many of thelocations are well inland or not in the direct path of the storm.Three stores were completely destroyed and a fourth was seriouslydamaged. At the peak of the hurricane, 47 stores were closed due tomandatory evacuations or loss of power. As of yesterday afternoon, sixstores remained closed pending repairs and/or resumption of power. Allof the Company's stores are insured against losses due to propertydamage and business interruption, subject to a deductible, which inthis case is estimated at less than $1 million. In the fourth quarterof fiscal 2004, the Company incurred uninsured losses from fourhurricanes totaling approximately $4 million.

The Company is hosting a conference call for interested partiesthis morning at 10:00 a.m. Eastern time. The call will be broadcastlive over the Internet and will be accessible at www.thepantry.com orwww.companyboardroom.com. A replay will be available at these sitesuntil September 15, 2005.

About The Pantry

Headquartered in Sanford, North Carolina, The Pantry, Inc. is theleading independently operated convenience store chain in thesoutheastern United States and one of the largest independentlyoperated convenience store chains in the country, with net sales forfiscal 2004 of approximately $3.5 billion. As of June 30, 2005, theCompany operated 1,386 stores in eleven states under a number ofbanners including Kangaroo Express(SM), The Pantry(R), GoldenGallon(R), Cowboys, and Lil Champ Food Store(R). The Pantry's storesoffer a broad selection of merchandise, as well as gasoline and otherancillary services designed to appeal to the convenience needs of itscustomers.

Safe Harbor Statement

Statements made by the Company in this press release relating tofuture plans, events, or financial performance, including statementsregarding our assessment of hurricane damage, estimated costs,insurance coverage and impact of events on financial outlook, are"forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. These forward-lookingstatements are based on the Company's current plans and expectationsand involve a number of risks and uncertainties that could causeactual results and events to vary materially from the results andevents anticipated or implied by such forward-looking statements. Anynumber of factors could affect actual results and events, including,without limitation: fluctuations in domestic and global petroleum andgasoline markets; the effect of national and regional economicconditions on the convenience store industry and the markets we serve;the effect of regional weather conditions on customer traffic;financial or other difficulties of suppliers, including our principalsuppliers of gas and merchandise and their ability to continue tosupply our stores in the wake of damage caused by Hurricane Katrina,the restoration of gasoline pipeline operations, environmental risksassociated with selling petroleum products; governmental regulationsand final damage costs from Hurricane Katrina and insurance proceedsavailable to the Company. These and other risk factors are discussedin the Company's Annual Report on Form 10-K, and in its other filingswith the Securities and Exchange Commission. In addition, theforward-looking statements included in this press release are based onthe Company's estimates and plans as of September 8, 2005. While theCompany may elect to update these forward-looking statements at somepoint in the future, it specifically disclaims any obligation to doso.