Re Joint Venture

Compass Group PLC 29 March 2001 29 March 2001 Compass Group announces joint venture in Japan with Itochu Corporation Compass Group is delighted to announce the formation of a joint venture, Compass Group Japan, with the Itochu Corporation and Fuji Oil through the acquisition of an initial 45% of the shares of GMJ, with an agreement in place for a further 5% of the shares over the next 3 years. Compass Group Japan will initially have annual revenues in excess of Y3 billion (£17 million) in a foodservice market of Y3,200 billion (£18 billion). With business across Japan, the Company has contracts in the business and industry, education and healthcare sectors, employing over 600 people. Major clients include Fuji Xerox, Isuzu Castic and Akebono Break. It is envisaged that over the next three to five years, with the aid of its new partners, the Company's growth will be both organic and through acquisition. Michael J Bailey, Chief Executive Compass Group, said: 'The Japanese contract foodservice market is an important opportunity for Compass Group as it is the second largest single foodservice market in the world. We are delighted to have the opportunity to work in this joint venture with Itochu Corporation and Fuji Oil as such large and dynamic Japanese groups give us excellent partners, and a strong business base from which to grow. We see this as a strategically important step in the Group's future development.' The Chief Executive of Compass Group Japan was confirmed as Tadahisa Ichihashi, who is delighted with the move since it provides Compass Group Japan with superb resources from which to build a leading position in the Japanese foodservice market. This was further echoed by Graham Smith, Chairman to the new joint venture, who sees the relationship with the Compass Group as being timely, bringing international expertise and the brands for which the Compass Group are so well known, while Itochu Corporation and Fuji Oil will bring local support and market intelligence. Ends For further information contact: Cathi Lawrence Corporate Communications Director, Compass Group 01932 573000 Nick Lyon/Wendy Baker, Hudson Sandler 020 7796 4133 Notes 1. Itochu Corp. is a leading trading company in Japan with sales of Y 12,1440 billion annually. Itochu trades worldwide in food products, textiles, machinery, building supplies, manufacturing industries, IT industries. 2. Fuji Oil is one of the world largest edible oil companies and provider of fats for the chocolate industry. In addition, it manufactures soy protein products with annual sales of Y150 billion. 3. Compass Group is the world's largest foodservice company employing over 265,000 people in over 80 countries and with proforma annual revenues in excess of £8billion. The Group provides foodservice for clients including major employers, educational establishments, hospitals, leisure venues, retail locations, motorway service areas and at major airports and stations throughout USA, Europe, Scandinavia 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. For further information visit www.compass-group.com
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