Press Release

Gate Gourmet, BA Sign New Deal

LONDON, Thursday, October 20, 2005 - Gate Gourmet is pleased to announce that a new commercial agreement with British Airways was signed today.

Eric Born, Managing Director of Gate Gourmet UK & Ireland, said: "We are very pleased that the deal has been signed. We are continuing to ramp-up service levels on short-haul flights and are focused on providing outstanding service to British Airways and our other customers.

"Throughout the difficulties of the past few months, our overriding objective has been to secure the future viability of Gate Gourmet's Heathrow operation and the jobs that depend on it. Today's agreement helps us to achieve both.

"Despite all that was said during the dispute, we did not provoke nor did we seek a conflict with our staff or the trade union, but reacted to the illegal wildcat strike.

"There is still a lot of hard work ahead of us. However, the speed at which Gate Gourmet can consider any re-engagement of some of the dismissed workers that participated in the illegal wildcat strike on 10th August depends on how quickly the union can convince its members to sign the necessary compromise agreements.

"We thank our staff for their continued hard work and commitment to secure the future our business and better serve our customers".

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).