Trading Statement

Compass Group PLC
20 March 2002

                                                      20th March 2002

                  COMPASS GROUP TRADING UPDATE:

        COMPASS GROUP ANNOUNCES STRONG FIRST HALF TRADING


Compass Group will issue its interim results for the six months ending 31
March 2002 on 21 May 2002. Prior to its close period, the Company today
issues the following trading update.

Compass Group's strategy continues to be one of achieving strong growth in
the expanding £240bn foodservice and vending market, through the development
of its sector-focused businesses and the use of its unique portfolio of
foodservice brands, growing primarily organically, supplemented with
strategic infill acquisitions.

Organic turnover growth

The Groups three geographic regions of the UK, Continental Europe and the
rest of the world, and North America have continued to grow their turnover in
the first half of the year giving an expected overall increase of 7% on a
like for like basis.

Like for like turnover growth for the UK division is expected to be 6%
(excluding fuel), in the Continental Europe and the rest of the world
division it is expected to be 8% and in the North America division it is
expected to be 7%.

Business retention rates in the Group continue in line with the 95% achieved
in the last financial year.


Margin growth

Synergies within the UK business are on track to deliver the predicted
incremental £20m of benefit for the full year yielding £40m in total for
2002. It is anticipated that an incremental £8m will be achieved in the
current half year. Including these synergies, margin improvements continue to
be in line with management expectations and a like for like increase in the
overall Group margin of between 20 and 30 basis points is expected for the
half year.


New Business

New business gains in each of the divisions continue to be strong
highlighting the significant growth potential as the trend to outsourcing and
further consolidation of the industry continue. Major new contracts signed
recently include:

* North America: New business gains in North America continue to be strong.

    -Today Compass Group announces that Restaurant Associates has won a $5m
     pa, 5 year contract to cater for 4500 customers daily at Lehman Brothers,
     New York;

    -Morrison, acquired by the Group in April 2001, has gained a number of
     significant contracts in the first half year including a contract to
     provide over 2,000 meals a day at Owensboro Mercy Health System, Kansas;

    -Canteen Vending has been awarded a 5 year contract with the Florida
     Department of Justice with annual turnover of over $6m; and

    -Chartwells School Dining Services has gained a number of prestige new
     contracts during the first half including De Paul University, Chicago;
     Francis Howell School District, Missouri; University of Nevada, Reno and
     Winston-Salem/Forsyth County Schools, North Carolina.


* UK: Six months after its launch into the UK, Restaurant Associates has
  gained new business worth a combined total turnover of some £60m per annum.
  Clients include Deutsche Bank, J Walter Thomson and Esporta Plc Health and
  Fitness Clubs.

* Germany: Compass Group today announces that the energy supplier Stadtwerke
  Munchen, which previously provided foodservice in house, has awarded Eurest
  and Selecta a contract for foodservice and vending with annual turnover of
  Euro 2.6m. In Healthcare, Clinic Catering Services have been awarded
  contracts by hospitals in Mannheim, Cologne and Iserlohn with annual turnover
  of Euro 7m.

* Brazil: Eurest has been awarded a contract to serve 1570 meals a day to
  Volvo in a contract which was previously self-operated.

* France: Earlier this month the Group announced that Medirest had gained a 3
  year contract with 'Assistance Publique- Paris Hospitals' worth Euro 14m
  million per annum. This follows the announcement in January of three
  significant contract wins: Eurotunnel, Mutuelles du Mans and the European
  Parliament in Strasbourg, worth Euro 22m in annual turnover.

* Remote Site: In January the Group announced the signing of a 10-year
  'Preferred Supplier' agreement with ChevronTexaco, believed to be the largest
  ever negotiated in the catering industry. The contract has an annual value of
  more that $200 million when fully mobilised.

Infill Acquisitions

In total, the Group has invested some £500 million, including debt in
subsidiaries acquired, on infill acquisitions including the strategically
important Seiyo Foods in the first half of the current financial year. Net
debt at 31 March 2002 is expected to be approximately £3 billion.

* Seiyo Food Systems: In December 2001, the Group announced the
  acquisition of the leading Japanese foodservice operator, Seiyo Food Systems
  Inc. for £193 million. On 30 January 2002, the Group completed the
  acquisition of 80% of Seiyo Foods. Seiyo Foods had net debt of 32.8 billion
  Yen (£182 million) as at 30 September 2001. Seiyo Foods provides the Group
  with the ideal platform to exploit the opportunities arising from the
  ongoing development and consolidation of the £21bn Japanese foodservice
  market.

  Seiyo Foods, as stated in December 2001 at the time of Compass Group's
  announcement of its intention to acquire the company, had already commenced
  the sale of its loss-making restaurants business, CASA. Earlier in March 2002
  Seiyo announced agreement on the disposal of the majority of this business
  and proceeds from this disposal are in line with Compass Group management
  expectations.


In addition to the acquisition of Seiyo Foods, the Group has announced two
further key acquisitions in the first half which are due to complete shortly:

* Restorama, Rail Gourmet and parts of Gourmet Nova : In December 2001 the
  Group announced the acquisition of Restorama AG and Rail Gourmet AG from
  SAirlines AG and parts of Swissair's Gourmet Nova business for a total
  consideration of £41million. Restorama provides foodservice in the business
  and industry sector in Switzerland, Germany and Austria. Rail Gourmet is a
  leading provider of on board foodservice to customers travelling by rail in
  Europe.

  To date, the Group has completed the acquisition of part of Gourmet Nova for
  £3m and the acquisition of Restorama and Rail Gourmet is expected to complete
  shortly. The purchase of Rail Gourmet's UK business is subject to clearance
  by the UK competition authorities.


* Bon Appetit: Earlier this month the Group announced the acquisition in
  North America of Bon Appetit Management Company for £114 million. This is a
  strategically important move - strengthening the Group's profile on the US
  West Coast, in particular in business and industry and in education
  foodservice.


Tax

The tax rate for 2002 is expected to be 28.0% reflecting the adoption of
FRS19 (Deferred Tax). As required by FRS19, the tax rate for 2001 has been
restated to reflect its non-cash impact, which will increase the rate for
that year by 1.3 percentage points.

Outlook

The Group remains committed to branding, international expansion and market
segmentation in foodservice, with a strong focus on organic growth, margin
improvement and return on capital employed.

Francis Mackay, Chairman said, 'Compass Group is in a strong position to
maintain its progress in all divisions. The Group is focused on delivering
against its growth targets and delivering shareholder value. We look forward
with confidence to achieving annual like for like turnover growth in our
target range of 6% to 9%.'

Michael J Bailey, Chief Executive commented ' I am pleased to report that
trading in the first half of the current year is in line with management
expectations. Compass Group's unique business model - combining contract and
concession foodservice with vending - and the commitment of our employees to
delivering against our client and customer expectations has continued to
drive excellent business retention and strong new business growth. This gives
us confidence as to the continued successful performance of the Group
worldwide'.

                               -ENDS -

Compass Group will hold a conference call on Wednesday 20 March 2002. To
participate in the call, from 9:00 am dial: [phone] or +44 (0)
20 8781 0563.

A replay will be available for five days after the call. The dial in number
for this is 020 8288 4459 and the pass code is 699812.

Contacts:

Andrew Lynch, Group Finance Director
Compass Group PLC                                   01932 573000

Timothy Grey
Brunswick                                           020 7404 5959


Notes

1. Compass Group is the world's largest foodservice company employing over
360,000 people in over 90 countries and with annual revenues in excess of
£9bn. Compass Group provides foodservice for clients including major
employers, educational establishments, hospitals, leisure venues, retail
locations and at major airports and stations throughout 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. Compass Group cash tender offer for Seiyo: On 30 January 2002, Compass
Group PLC confirmed the successful conclusion of its cash tender offer for
Seiyo. Compass Group now owns 80% of Seiyo's issued share capital and has the
additional voting support of Seiyo's two largest shareholders, Saison Network
Inc. and Seibu Department Stores, Ltd., together representing a further 13.5%
of the equity of Seiyo.



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