Press Release

Gate Gourmet and TGWU Agree on Selection Criteria

London, September 9, 2005 - Gate Gourmet London (Heathrow) and the Transport and General Workers Union (TGWU), assisted by the Trades Union Congress (TUC), today reached agreement on compulsory redundancy selection criteria and a process for the ratification of the company's survival plans.

Eric Born, Managing Director of Gate Gourmet UK & Ireland said: "This is another milestone on the long road to finding a permanent and fair resolution to our current labour issues. We are still working through the voluntary redundancy and compensation programme, with the union, along the lines of framework agreed on 25th August."

The agreed criteria include standard performance-based measures such as skills and knowledge, attendance and disciplinary records.

The company together with the union will next consider the results of the voluntary redundancy and compensation programme as they become available.

Gate Gourmet is trying very hard to find a fair and reasonable solution for the dismissed workers. Due to legal reasons the company is unable to selectively reengage dismissed workers because the illegal action that took place was instigated and supported by local union officials. The legal constraint on the company is well known to the union and has been at the heart of the lengthy negotiations since the wildcat strike.

In present circumstances the signing of compromise agreements by all the dismissed workers is the only way that would enable Gate Gourmet to quickly consider any requests by dismissed employees to be reengaged by Gate Gourmet. There would have been more freedom to discuss a selective reengagement process if the union had accepted from the start that the action was unofficial.

As part of the framework agreement signed on 25th August, Gate Gourmet agreed to offer those workers whom it dismissed for the illegal industrial action on 10th August the opportunity to apply for a goodwill payment equivalent to the enhanced voluntary redundancy offer -- even though the dismissed workers have no legal rights to compensation.

The Company remains committed to work with the TGWU and TUC to find a constructive resolution to the current situation.

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).