Press Release

Moody’s Issues ‘Positive’ Outlook for Gate Gourmet Credit Rating

RESTON, Va. April 16, 2008 – Moody’s Investor Service has upgraded its ratings outlook on Gate Gourmet to “positive” from “stable,” reflecting continued improvement in the company’s operating performance over the past two years.

According to Moody’s the change in Gate Gourmet’s rating outlook reflects several factors:

Successful implementation of the cost control measures and restructuring plan that started in 2004, which resulted in an improvement in cash flow;
An expanded range of services as well as broader geographic diversification and wider customer base “that is likely to help Gate to take advantage of positive industry dynamics and withstand a likely cyclical downturn in the short term”;
An expectation that the company will likely meet its goal to reduce leverage and will use its financial flexibility to continue to reduce debt;
A comfortable liquidity position provided there is no severe deterioration in the market environment; and
An expectation that positive trends in the airline industry, including outsourcing and increased long-haul traffic, will continue.

In a press release, Moody’s said the positive outlook reflects the expectation that Gate Gourmet will “continue to perform in line with its budget, strengthen its business profile and maintain adequate liquidity going forward.” The agency also said the outlook reflects its expectation that the company’s business fundamentals will remain solid “despite the likely short-term contraction in growth expectations for the airline industry and related services resulting from higher oil prices and lower consumer spending.”

gategroup Chairman and CEO David Siegel said, “The company is pleased that Moody’s continues to recognize the striking improvement in Gate Gourmet’s performance and potential, even in the face of a potentially harsher industry environment. We are committed to maintaining positive momentum with our expanded portfolio of products and services represented by our new gategroup umbrella brand.”

Moody’s corporate family rating on Gate Gourmet stands at B2, which was affirmed in April 2007.

About Gate Gourmet:
Gate Gourmet was founded in 1992 and has dual headquarters in Zurich, Switzerland, and Reston, VA, USA. The airline catering company has substantially expanded through acquisitions, leading to the creation of gategroup, the leading global provider of above-the-wing services representing 11 brands. Visit www.gategroup.com for more information.