Press Release

Gate Gourmet and TGWU Agree Deal

Heathrow, Wednesday, September 28, 2005 - Gate Gourmet London (Heathrow) is delighted to report that the Transport and General Workers' Union has finally agreed to the proposal put forward by the company last month to resolve the current labour dispute, and to an earlier proposal to change working practices agreed in June.

The next step is for the union to ask its membership to vote in favour of the agreed proposals.

Eric Born, Managing Director of Gate Gourmet UK & Ireland, said: "After weeks of constructive negotiations, I am pleased the union leadership has ultimately accepted our suggested path for a resolution to this dispute.

"As we have said all along, we are happy to consider re-engaging some of the workers dismissed for staging an illegal walkout. The speed at which we will be able to do this depends on when the union gains the approval of its membership for the agreed proposals, and on the completion of the necessary compromise agreements. This process could have been simpler had the illegal wildcat action on 10th August been renounced by the union, and therefore considered 'unofficial'."

Gate Gourmet thanks Brendan Gold for agreeing to the proposals, and Brendan Barber for his unwavering support and assistance throughout the negotiation process. We look forward to continuing to strengthen our newfound relationship with the union at Heathrow.

Gate Gourmet also thanks its loyal employees and customers for their continued support as the company strives to secure the long-term viability of the business and the 1,400 jobs at its Heathrow operation.

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).