Press Release

Gate Gourmet Requests Mediation in U.S. Labor Talks

Reston, VA, June 16, 2005 - Gate Gourmet has requested mediation assistance from the National Mediation Board (NMB) in light of the company's desire to reach a timely agreement with its U.S. unions.

Gate Gourmet's labor relations are covered under the Railway Labor Act (RLA) and, as such, contracts do not expire, but rather become amendable. While in mediation the current contract remains in force, which assures uninterrupted service to the company's customers.

The NMB, an agency of the federal government, will appoint a mediator to assist in the negotiations process, and there is no time limit specified by the Act to conclude the mediation process.

"Gate Gourmet's strong preference is to reach a consensual agreement with its labor groups as quickly as possible," said Pete Pappas, president of Division Americas. "We view the assistance of a federal mediator as a positive step toward reaching this outcome."

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).