Press Release

Gate Gourmet London (Heathrow) Accelerates the Implementation of the Union Agreement

Heathrow, Thursday, November 17, 2005 - Gate Gourmet is to accelerate the implementation of the agreement reached with the TGWU in Brighton, on 26th September, the company announced today.

Gate Gourmet will start to contact a number of former employees who were dismissed for participating in the illegal wildcat strike in August. Interviews will be arranged for those contacted who may wish to shortly receive an offer of re-engagement which the company will consider after successful interviews are held.

Eric Born, Managing Director of Gate Gourmet UK & Ireland, said:

"We are doing everything possible to follow the approach, that was agreed with the TGWU and the TUC. Unfortunately -- and beyond the control of Gate Gourmet -- the implementation of the agreement is taking longer than expected.

"It is disappointing that many of the dismissed workers who instigated and took part in the illegal wildcat strike, by not signing up to the compromise agreement are delaying the process agreed with the union. Because of this the defined steps for implementing each stage of the agreement have not yet been concluded.

"For this reason, despite Gate Gourmet's determination to see the agreement implemented in full, we have not been in a position to offer the compensation payment to our former employees as agreed with the TGWU or in the case of some to consider them for re-engagement.

"We have decided, in agreement with the trade union, to accelerate the process and are taking steps to enable the former employees to receive a compensation payment and ensure a faster resumption of full service for our customers.

"Gate Gourmet's decision to accelerate the implementation of the agreement means we will not wait for all former employees to sign the compromise agreement before any get their individual cases sorted out. Nor will we allow the refusal by some to deny progress for others.

"We remain committed to following the spirit and the letter of our September agreement with the TGWU and hope to conclude matters as quickly as possible. Overall our main priority is to restore full service levels to British Airways short-haul flights."

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).