Press Release

Boost for Gate Gourmet as New Figures Show Productivity Rising and Sickness Falling at Heathrow

London, April 20, 2006 - Eric Born, managing director of Gate Gourmet UK and Ireland, today published the latest figures showing increasing productivity over the last six months at the Heathrow South production unit which provides premium meals, drinks, duty free goods, newspapers, essential supplies and other equipment for airlines.

The rise in productivity was accompanied by a large fall in the number of days lost due to sickness at the airline catering and logistics firm and the amount of paid overtime required. The removal of 'out dated work practices' provides the company with the necessary cost structure to be competitive in the market place. The new figures show:

• the number of economy class bar trolleys packed at the Heathrow South unit has increased from 34 per employee per day in August 2005 to 53 per employee per day in March 2006 -- an improvement of 56%;
• the number of hours lost in the first quarter due to staff sickness at the Heathrow South production unit fell by 58% relative to the previous year. The sickness rate at Gate Gourmet's Heathrow South production unit is now 3%;
• as a result of improved productivity and a lower sickness rate, the number of paid overtime hours required to be worked has fallen by 76% in the first quarter 2006 compared to 2005

Eric Born said, "There is still a long way to go but we are now seeing real improvements in productivity at Gate Gourmet. The changes we've been making to working practices are clearly paying off."

"Sickness is falling and productivity is rising. Of course, we have to keep up the momentum to continually make improvements in both to secure the future of our company and the jobs that go with it."

"As a result of the progress we are now making, I am hopeful that Gate Gourmet UK & Ireland will break even this financial year," said Mr Born.

Rackesh Chander who works as a Controller in despatch said, "We're working better as a team and the benefits are beginning to show through -- even the number of people taking days off due to sickness has halved."

We're better organised now and as a result it's a better place to work. We've had more than our fair share of criticism over the last year but Gate Gourmet's really getting better now," said Rackesh.

For more information

Darren Murphy
+44 0207 526 3600

Notes to Editors

1. Gate Gourmet UK and Ireland services over 150,000 flights every year and provides 36 million meals a year.
2. The bar trolleys packed figures measure the number of flights per employee per shift which have been packed by an employee in the bonded department. Gate Gourmet despatches premium meals, water and other drinks, duty free goods, newspapers and magazines, DVDs, medical and other essential supplies.
3. The sickness measure is the number of lost hours due to sickness divided by the number of available hours. The annual survey of the Chartered Institute of Personnel and Development (CIPD) found in July 2005 that the average sickness rate in the UK was 3.7%.
4. Gate Gourmet resumed full service on all British Airways flights in December 2005. This was possible as a result of the Heathrow operation recruiting and training the necessary complement of staff. By end of March 2006, the number of staff re-engaged following their dismissal during the August 2005 illegal industrial action was 252. The number in receipt of compensation payments was 409. This represents 100% of the 661 staff who signed compromise agreements and were therefore eligible for re-engagement or compensation payments.
5. Gate Gourmet employs 881 workers at its Heathrow South site. Gate Gourmet UK and Ireland employees 2,361.