Acquisition

Compass Group PLC 01 March 2004 Compass Group first international company to provide railway catering in China 1 March 2004 Compass Group's operating company Rail Gourmet has entered a 15-year joint venture with the Shanghai Railway Administration for the provision of station and onboard catering services. Rail Gourmet holds a majority share in the company, which marks the first time a non-Chinese company will be providing passenger services on the Chinese Railways. The new company, Shanghai Rail Gourmet Company Limited, will commence on 18 April 2004, serving approximately 2,500 meals per day on four newly designed high-speed trains linking Shanghai and Beijing. The agreement provides for an expansion of these services to other train services and railway stations within the Shanghai Railway network. Michael J. Bailey, Chief Executive, Compass Group, said: 'We are delighted to be taking this significant first step in expanding Rail Gourmet's services into China with our joint venture partner. Considering the high volume of passenger traffic on Chinese rail networks and the very limited food service currently provided, there is tremendous market potential for catering services not just on board trains but also on railway stations in Shanghai and throughout China.' Compass Group entered Greater China in 1994, and today employs over 3000 people serving customers through all of the company's foodservice divisions, including Business and Industry; Education; Heathcare; Defence, Offshore and Remote; and Concessions. Recently announced business wins and extensions in China and Hong Kong include Meilan Airport on Hainan Island in the South China Sea; an expansion of services at Hong Kong Airport; and business and industry catering for employees of Philips MDS, General Electric, and PSA Peugeot-Citroen. These, combined with previously awarded contracts, such as The Shanghai American School and The International School Of Beijing contracts, bring the total number of contracts operated in China and Hong Kong to over 150. Enquiries: Compass Group PLC +44 (0) 1932 573 000 Sarah Ellis Director of Investor Relations Brunswick Group Ltd +44 (0) 20 7404 5959 Timothy Grey Note: Compass Group is the world's largest foodservice company with annual revenues in excess of £11 billion. Compass Group has over 400,000 employees working in more than 90 countries around the world. For more information, visit www.compass-group.com This information is provided by RNS The company news service from the London Stock Exchange
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