Press Release

Gate Gourmet, Labor Council Agree to Final and Binding Arbitration

Reston, VA, August 8, 2005 - Gate Gourmet Inc. has reached an agreement with the council representing its U.S.-based unionized employees to submit all unresolved contract issues to final and binding interest arbitration, which will result in a new four-year labor agreement by the end of the year.

"Gate Gourmet welcomes the agreement with the IBT/HERE Employee Representative Council, which will ensure consistent and uninterrupted service excellence for our customers," said Peter Pappas, President of Division Americas.

"This development paves the way to address the company's need to lower its operating costs in a fair and responsible manner, and underscores our desire to reach a mutually acceptable agreement with our labor unions to return to financial health," he said.

The company and the labor council, which represents approximately 7,000 employees, entered into negotiations in December 2003 in anticipation of the National Master Agreement's amendable date of June 1, 2004. (The company and its unions are covered under the Railway Labor Act and contracts do not expire, but rather become amendable.) Negotiations between the parties are continuing under the auspices of the National Mediation Board.

The agreement means that all issues will be resolved, either through negotiations between the parties or by the arbitration panel over the next several months. Gate Gourmet is a leading global supplier of airline catering and logistics, with 22,000 employees in 109 flight kitchens in 30 countries.

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).