LSG Sky Chefs Expands its Leading Position in the Brazilian Market

Neu-Isenburg — LSG Sky Chefs, the world’s largest provider of in-flight services, announced today the acquisition of the majority shares (70 percent) in three facilities in the northern region of Brazil, South America in order to expand its leading position in the Brazilian market.

The deal, which goes into effect as of January 1, 2009, includes existing catering facilities in Fortaleza, Natal and Belém, operated until now by minority owner Palheta Group. Palheta is a family-owned airline catering and restaurant business based in Brazil.

This transaction strengthens LSG Sky Chefs’ position in a geographical area of rapid tourist growth — expected to be as much as five percent per year. In 2007, 3.6 million passengers passed through the Fortaleza airport while 2.1 were welcomed in Belém, the entry city to the Amazon Forest. The airport in Natal, Brazil’s second-largest oil producing state, has capacity for about 1.2 million transients per year. Fortaleza and Natal serve TAP, TAM and GOL. Belém serves TAM and GOL.

“With this acquisition we position ourselves as the major, and in one instance only, catering provider at five locations in northern Brazil, “said LSG Sky Chefs Chief Operating Officer for Latin America, Paulo Teixeira. “In addition to these three new locations we already have a presence in Recife and Salvador. This also gives us added leverage with important customers.”

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