Press Release

Gate Gourmet Düsseldorf, Trade Union Sign New Contract

Düsseldorf, April 7, 2006 - An agreement between Gate Gourmet Düsseldorf and the catering industry trade union NGG has ended a months-long industrial dispute.

"We have reached most of our aims to achieve the necessary savings for making Gate Gourmet Düsseldorf competitive, a key condition to protect jobs at the location," said Philippe Op de Beeck, Vice President Central Europe.

"With the new contract, Gate Gourmet changed its working hours to a 40-hour week. This way the company is reconciling its cost structure to those of its competitors in Düsseldorf. The higher flexibility and efficiency that we have achieved through this agreement are essential requirements to meet the competition," stated Op de Beeck.

On the basis of an agreement that was reached on Monday, a new tariff contract for the company's employees had been drafted. Today, Gate Gourmet workers accepted it in an employee ballot. The new contract will be effective up to 2009. Beyond 2009, the 40-hour week will also be applicable if the overall industrial agreement has moved to a 40-hour week. If this would not be the case, an average of 39 hours a week is guaranteed. Additionally, a Christmas bonus aligned with the company's performance has been agreed. For new employment, a separate tariff contract will be used, which is below the current tariff level.

"It would not have been possible to continue running the company with its current cost structure. This new tariff contract helps the company address both revenue and cost pressures," Op de Beeck said, adding that wages at a local competitor are as much as 25 percent lower.

Gate Gourmet Düsseldorf has continued to maintain a full level of service for its airline customers during the dispute. "We are eager to welcome our employees back to their jobs and put this episode behind us," stated Op de Beeck. The strikers will return to their work on 18 April.

For more information, contact

Telephone: 0163 - 55 68 124

presse@gategourmet.com

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).