Press Release

Gate Gourmet signs Letter of Intent with Iberia

Zurich, December 17, 2003 - Gate Gourmet and Iberia have signed a Letter of Intent for the purchase by Gate Gourmet of 70 percent of the shares of the airline catering company Iber-Swiss, presently owned by Iberia.

Gate Gourmet already owns the other 30 percent of the shares. The value of the sale amounts to 23.5 million Euro. The transaction remains subject to the approval by the Competition Authorities.

This agreement also forms the basis for a worldwide 7-year contract by which Gate Gourmet will provide exclusive catering, inflight and supply chain management services to the Iberia Group around the globe. Iber-Swiss caters for the passengers of the Iberia Group and another 30 airline companies each day. Last year, Iber-Swiss produced more than 14 million meals for almost 140,000 flights.

Founded in 1992, Gate Gourmet is the world's largest independent airline catering, hospitality and logistics company with dual headquarters in Zurich, Switzerland, and Reston, VA, USA. The company has substantially expanded its products and services recently through acquisitions and strategic investments. The portfolio now includes cabin service ware (deSter); comfort/entertainment items (Harmony); packaged food components assembled in central production units (Supplair); design and delivery of brand-linked customer environments (Performa); service staff recruitment and training and crew leasing (Elan); aviation services such as cabin cleaning, aircraft washing and deicing and passenger services (Fernley/IAS); catering security (Gate Safe); business applications (eGate Solutions); and supply chain optimization (partnership with Pourshins).