IBM Renews Compass Group Contract.

Business Editors/Restaurant Writers

CHARLOTTE, N.C.--(BUSINESS WIRE)--March 7, 2000

Compass Group, North American Division has renegotiated its food and vending contract with IBM in a deal worth more than $2 billion.

"We're thinking in terms of 30-year increments," said

Compass Group was awarded the contract for all IBM sites in North America in 1995, the year Eurest Dining Services was launched. At the time, it was the largest contract in the industry's history with operations at more than 34 sites.

The contract now is for operations at 64 sites, serving more than 100,000 IBM employees in dining rooms, customer briefing centers, sundry shops, executive dining facilities and vending.

John Valentine, Senior Vice President for Eurest, said the contract will be benchmarked by IBM and Compass Group in the following areas: customer satisfaction, value pricing and revenue producing opportunities.

"What set us apart was the job that we have done over the first 3 1/2 years of the contract and that gave IBM confidence to begin discussions on this landmark agreement," Valentine said.

As part of the renewal, Compass Group will renovate a number of facilities and install Compass Group brands such as Profiles in Good Taste and Market Central. National brands, such as Pizza Hut, Burger King and Sbarro, also will be available at some sites.

When the contract was first awarded, Compass Group created an IBM specific management team. That team will continue to oversee quality standards for all IBM sites.

"The goal was always to ensure a win-win partnership that addresses customer satisfaction for IBM employees," Valentine said.

Compass Group, North American Division has annual revenues of $2.8 billion and employs more than 58,000 people.

Compass Group is the Official Catering Services Supplier for the 2002 Olympic and Paralympic Winter Games in Salt Lake City. Compass Group will provide catering and concession services to the 3,500 residents of the Olympic Village as well as more than 125,000 people daily during the Olympic Winter Games, including members of the worldwide media, judges and officials.

Compass Group PLC, based in the UK, is the world's largest foodservice company, operating in more than 70 countries with revenues of $7.9 billion.

For additional information contact Leslie Brown, communications manager for Compass Group, North American Division at 704.329.1365.

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