Statement re Litigation

Compass Group PLC
16 October 2006


                                Compass Group PLC

16 October 2006


       Announcement in relation to ESS/ES-KO and Supreme (UN) litigation


In March 2006, two competing food companies, ES-KO International Inc. and
Supreme Foodservice AG, brought US law suits totalling some £600,000,000 against
ESS, Compass and various ESS staff, based on allegations relating to ESS's
contracts with the United Nations.

The Compass senior management team has been determined to reach an outcome that
would avoid the uncertainties and costs associated with the litigation. It has
therefore taken the necessary steps for a successful voluntary mediation to
resolve this civil litigation.

Compass has agreed to a final settlement of all claims against all Compass
related parties. The terms of the settlement are confidential but the total
legal, professional and related costs associated with investigation, litigation
and settlement are below £40,000,000. No legal liability has been admitted.

Richard Cousins, CEO, said: 'Whilst any claims would have been resolutely
defended, we believe it is in the best interests of the business and
shareholders, and good management, to avoid the uncertainties and costs
associated with prolonged litigation. My focus is on the future and this
settlement is a major step in putting the matter behind us. Moreover, I am
determined to ensure that our reputation for the ethical treatment of clients,
suppliers and competitors, over and above any issues of legal liability, is
underlined. I am now seeing through a programme of systems and control changes
to ensure that all lessons are learned from this experience.

                               -          Ends -

Notes to Editors

1 The case would have gone to trial in late 2007 after extensive litigation
involving several different jurisdictions, many witnesses and considerable
expert evidence. It is likely that there would have been various attacks on the
privileges and immunities of the United Nations.

2. Compass is continuing to offer full cooperation to the authorities that have
been considering these matters, including the UN.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
    
STRMABJTMMMBTPF