Trading Statement

COMPASS GROUP TRADING UPDATE:                         

                     CONTINUED STRONG PERFORMANCE EXPECTED                     

Compass Group PLC will issue its Preliminary Results for the year ended 30
September 2002 on 3 December 2002. Prior to its close period, the Company today
issues the following scheduled trading update.

Michael J. Bailey, Chief Executive, said:

'At our Preliminary Results in December 2001, we noted that the global economic
environment had become more uncertain with general activity slowing in a number
of countries. However, we stated that we remained confident that Compass Group
would continue to perform well and to achieve organic turnover growth within
our target 6-9% range, although growth would probably be towards the bottom of
the range reflecting more difficult trading conditions. We also expected like
for like margin growth for 2002.

'I am pleased to confirm that we are on track to achieve our goals as we expect
organic turnover growth for the year to be at least 6% together with a like for
like margin increase. We also expect to deliver significant improvement in free
cash flow, generating some £300m in the current financial year. This strong
performance is due to the continued commitment of our employees, the successful
implementation of our unique business model, which is focused on delivering
foodservice and vending through sector-specific subsidiaries and the use of our
portfolio of foodservice brands.

'I am also delighted to announce today our agreement to acquire a majority
stake in Onama S.p.A. for £80m which will give us a market leading position in
Italy, Continental Europe's third largest foodservice market. This will be the
most significant acquisition to be made by the Group in the 2003 financial
year.'

Organic Turnover Growth

Compass Group has continued to grow its like for like turnover in the second
half of the year and expects full year organic turnover growth to be at least
6%.

Full year like for like turnover growth for the UK division is expected to be
5%, in the Continental Europe and rest of the world division it is expected to
be 7% and in the North America division it is also expected to be 7%.

Trading in the second half of the year has been more challenging in a number of
countries due to a range of macro-economic factors including recession
pressures, lower growth in airports and flat rail passenger numbers in the UK.
Helping to offset these pressures has been a continuation of the Group's first
half momentum in new business gains and a contract retention rate that remains
above 95%.

Margin Growth

The Group's like for like margin for the full year is expected to have moved
forward by between 20 and 30 basis points. Margin growth within the UK business
has benefited from continuing merger synergies.

Profit Before Tax

Profit before tax for the full year remains in line with management
expectations.

Free Cash Flow

Free cash flow (after net capital expenditure) for the full year is likely to
be some £300m.

Like for Like Growth

Net growth in each of the divisions continues to be strong reinforcing the
significant growth potential in contract foodservice, particularly in
healthcare and education, as the trend to outsourcing and further consolidation
of the industry continue. Today Compass Group announces that Orange PCS
Limited, one of the UK's leading mobile phone networks, has awarded Eurest a
renewed three-year contract with an annual turnover of £4.5m. Eurest will
provide catering to over 10,000 Orange employees at 11 sites. In addition
Orange has recently awarded its national vending contract to another Compass
Group company, Vendepac, and awarded a new 3-year contract to Eurest Denmark
for their Danish offices.

New contracts signed recently include:

  * North America: The Group's US Healthcare business has gained 95 new
    contracts in the year. These include a 5-year agreement with The University
    of Texas Medical Branch Galveston with annual turnover of $3m and a 5-year
    agreement with The Fountains Retirement Communities, Inc. with over $14m
    annual turnover.
   
     Bon Appétit has secured a 5-year, $2.5m management fee contract with      
     Massachusetts Institute of Technology (MIT), one of the country's top     
     universities. New education contract wins for Chartwells include a 10     
     year, $2m contract at Weber State University in Ogden, Utah, and a 10-year
     contract at the University of North Florida in Jacksonville, valued at $6m
     a year.                                                                   

     Eurest has also signed a 5-year agreement with Herman Miller, Inc. in     
     Michigan with annual revenues of $5m and, in partnership with Canteen     
     Vending, a 10-year extension to its existing partnership with Bradley     
     University in Illinois with annual revenues of $3.5m. Additionally,       
     Canteen has won a three-year contract with AutoNation, the largest auto   
     retailer in the US, to provide vending service at 215 locations throughout
     the country.                                                              

  * UK: Medirest has been awarded a five-year contract by Basildon and Thurrock
    General at its two hospitals in Essex worth £2m in annual turnover.
   
     Scolarest has been awarded a new three-year contract by Sandwell Borough  
     Council worth £4m in annual turnover to prepare 16,000 meals a day for 120
     schools in the borough. The company has also been awarded a new 5-year    
     contract by Brighton & Hove City Council worth £2m in annual turnover.    

  * Continental Europe & Rest of World: numerous new contracts have been won
    throughout the division, most notably:
   
  * 
      + France: Eurest has won three new contracts with Bouygues Offshore, Le
        Paris Opera Garnier and La Poste with a combined annual turnover of
        Euro 3m.
       
      + Spain: The Group has made significant advances in the Spanish
        healthcare market winning 29 contracts with residential homes for the
        elderly during the year.
       
      + Scandinavia: SSP Sweden has negotiated a two and a half-year extension
        of its onboard services contract with SJ (Swedish Rail) totalling £
        23.5m a year and won a new seven-year contract with Luleå Airport with
        an annual turnover of £1.25m.
       
      + Romania: Eurest has won a major new contract with Renault Dacia in
        Pitesi with annual revenues of £2m.
       
      + Brazil: Eurest have won the contract for four Volkswagen sites with
        annual sales of US$8.4m and Canteen Vending has won the contract to
        install 230 Ritazza machines in Shell's forecourt convenience stores
        throughout the country. Eurest have also regained the contract for
        three Ford factories in Sao Paolo with annual revenues of $2.5m.
       
2002: Acquisitions & Disposals

Japan

Japan is the world's second largest foodservice market with an estimated £21bn
of annual turnover. In January 2002, the Group acquired 80% of Seiyo Food
Systems Inc. for £194m plus assumed net debt of £131m in order to strengthen
its position in the market. Since completing the transaction, Seiyo has
disposed of 120 loss-making CASA high street restaurants for £28m and reduced
its shareholding in the fast food operator Yoshinoya D&C from 24.7% to 20.2%
generating proceeds of £31m.

In August 2002, the Group's joint venture partner in Japan, Itochu Corporation,
expanded its existing relationship with Compass Group in Japan through an
investment in the Group's business. Compass Group and Itochu have also agreed
to integrate their existing joint venture into the wider Compass Group business
in Japan to be operated with Seiyo. As a result Itochu will hold a 20% stake in
the Group's business in Japan. These transactions will generate net proceeds of
£46m of which £42m has been received in the current financial year.

The Group has made significant progress in creating a clear business structure
for the Group in Japan, culminating in the delisting of the Seiyo business
which is expected to take place in October 2002. The management are now looking
forward to implementing the Group's business model in the Japanese market and
to deliver margin growth.

Other

During the year the Group has made a number of other in-fill acquisitions for a
total consideration of some £375m, including the acquisition of Restorama, Rail
Gourmet and parts of Gourmet Nova from Swissair Group, Louis Catering in
Continental Europe and the acquisitions of Bon Appétit, Vendlink and Cara
Healthcare in North America.

2003: Acquisitions & Disposals

Italy

Today Compass Group is delighted to announce its agreement to acquire a
majority stake in Onama S.p.A, based in Milan, Italy. The consideration for the
60% stake acquired, which will be payable in cash on completion is Euro 127m (£
80m). The transaction is expected to complete at the end of this calendar year.

Onama provides some 90 million meals annually from 600 catering facilities
principally across Italy, employing 10,000 people, and had turnover of Euro
446m (£282m) for the year ended 31st December 2001. Net debt at that date was
Euro 42m (£27m).

Compass Group's existing operation in Italy will be merged with Onama to give
the Group a market leading position in Continental Europe's third largest
foodservice market. As the largest company in the Italian contract catering
market, Onama's management expertise and its national network provides a
quality platform to ensure the Group will be well-placed to bid for business in
all sectors of this growing foodservice market. Clients include Olivetti and
Pirelli.

Onama will be the most significant acquisition to be made by the Group in the
2003 financial year and management reiterates its expectation that acquisitions
that it will make in the year will not exceed £200m in total.

Travelodge and Little Chef

In June 2002, following a strategic review, the Group announced that it was to
pursue the possible disposal of Little Chef and Travelodge through an auction
process. This process is going well with considerable levels of interest and we
will provide an update to shareholders at the time of our Preliminary Results
announcement.

Outlook

The Group remains committed to its strategy of focusing on the foodservice and
vending markets, delivering solid organic growth, continued margin improvement,
strong free cash flow generation and improving return on capital employed.

The Group is well placed to respond to recessionary pressures through its
purchasing power, flexibility in cost structure and proactive approach to
protecting its margin. It will also continue to benefit from its market-leading
position in the expanding £240bn foodservice market and looks forward with
confidence to the future growth of the business. With recently gained contracts
which are being mobilised, a strong pipeline of potential new business and the
expected continuation of a 95% plus contract retention rate, management believe
that the company can continue to deliver a broadly similar level of organic
turnover growth and margin improvement in 2003.

                                     Ends                                      

Teleconference

An investors teleconference will start at 9.30am (BST) on Friday 27th September
2002. To participate in the teleconference call dial: [phone].

A replay of the call will be available for 5 working days (until 4 October) by
dialling [phone], passcode: 895222.

Enquiries:

Compass Group PLC                               01932 573000           
                                                                       
Michael J Bailey, Chief Executive                                      
                                                                       
Andrew Lynch, Finance Director                                         
                                                                       
Brunswick                                       020 7404 5959          
                                                                       
Timothy Grey / Pamela Small                                            

Notes:

1.  Compass Group is the world's largest foodservice company employing   
    over 365,000 people in 96 countries and with annual revenues in      
    excess of £10bn. Compass Group provides foodservice for clients      
    including major employers, educational establishments, hospitals,    
    leisure venues, retail locations and at major airports and stations  
    throughout the USA, Europe, and developing markets in Asia and South 
    America. It operates through sector-specific subsidiaries such as    
    Eurest, the world's largest specialist in providing foodservice to   
    business and industry clients, and Select Service Partner, the       
    European market leader in foodservice at airport restaurants and rail
    stations. Further information on the Group can be found at           
    www.compass-group.com                                                
                                                                         
2.  Japan: Itochu Corp. is a leading trading company in Japan with sales 
    of over ¥13 trillion. Itochu trades worldwide in food products,      
    textiles, machinery, building supplies, manufacturing industries, IT 
    industries.                                                          
                                                                         
3.  Translation Rates: The Group has decided not to hedge exchange rates 
    for the profit and loss account translation of its overseas results. 
    Accordingly, with effect from the year ending 30th September 2003 the
    Group will use average exchange rates for the year to translate its  
    foreign currency denominated results.