Financial News

• First quarter sales increased 13% to $2.4 billion
• Net income increased 22% to $62.7 million or $0.31 per share

PHILADELPHIA – Feb. 6, 2003 – ARAMARK Corporation (NYSE: RMK), a world leader in managed services, today reported consolidated sales of $2.4 billion for its first fiscal quarter ended December 27, 2002, a 13% increase over the prior year quarter. Net income was $62.7 million, an increase of 22% over the prior year quarter, or $0.31 per diluted share, up 15% from $0.27 per share reported in the comparable period last year. The Company's consolidated EBIT margin improved to 5.7% for the quarter reflecting continued cost control efforts and a favorable sales mix.

"We are pleased with the results that our organization delivered in the first quarter,” said Joseph Neubauer, Chairman and CEO of ARAMARK. “Our economically non-sensitive businesses turned in a solid performance and we continued to add new clients. At the same time, ARAMARK maintained its focus on retaining clients and expanding existing relationships through our new corporate initiative - Mission One.”

ARAMARK's combined Food and Support Services sales increased 17% over the same quarter last year to $1.9 billion. The combination of improved organic growth and the incorporation of recent acquisitions fueled the sales increase.

In ARAMARK's Food and Support Services - U.S. segment, first quarter sales increased 18% from a year ago to $1.6 billion. The segment's operating income for the current quarter was $85 million, a 27% increase over the same quarter last year. Organic sales growth for the quarter was 3%, about the same as the prior year's quarter and an improvement over the fourth quarter of fiscal 2002. "While sales were lower in the business services sector, primarily due to low employment levels, we experienced strong growth in our education, healthcare, sports and entertainment sectors and corrections," Mr. Neubauer said.

In mid-December 2002, ARAMARK completed the acquisition of Fine Host Corporation's operations for approximately $100 million. Fine Host, with annual revenues of $300 million, brings with it approximately 900 client accounts complementing the Company's operations in the U.S. Food and Support Services segment.

Sales for the Food and Support Services - International segment increased 10% to $336 million from last year's first quarter, with currency translation accounting for about 7% of the increase. Organic sales growth, excluding acquisitions and the impact of currency translation, was about 3%. Operating income for this segment grew 21% to approximately $14 million, with the currency impact accounting for about 8% of the increase.

ARAMARK's combined Uniform and Career Apparel sales were up slightly from the same quarter last year to $384 million. Continued weak employment levels led to soft base business while new sales and client retention remained at solid levels.

In ARAMARK's Uniform and Career Apparel -- Rental segment, sales increased 2% from the prior year to $255 million with about half of the growth coming from acquisitions. Operating income of $27.5 million in the current quarter was down about 9% from the prior year quarter. Net new sales growth and modest price increases were substantially offset by continued contraction in the base business, and new investment in the sales force reduced current profitability.

In the Direct Marketing segment, sales increased 1% from the same quarter last year. The growth experienced by WearGuard/Crest's healthcare and Quick Service Restaurant businesses was offset by a difficult comparable quarter for Galls last year, due to extremely strong customer demand following September 11th. Operating profit increased slightly.

First quarter sales for the Educational Resources segment were down about 1% from the prior year to $112 million, primarily due to reduced enrollments and the closing of under-performing centers. Operating income was down about 4%, reflecting lower enrollment and higher insurance costs.

Operating cash flow, defined as net income plus non cash charges such as depreciation, amortization and deferred taxes less all capital expenditures, was a strong $84 million for the quarter.

Mr. Neubauer concluded, “Looking forward to the balance of fiscal 2003, we expect employment levels to continue to be a challenge to sales growth in our economically sensitive markets, particularly in the uniform businesses. We expect Fine Host to add approximately $200 million to our fiscal 2003 sales with minimal impact on operating income. For the year, we expect this acquisition to be cash flow positive and reduce diluted earnings per share by $.01 to $.02 per share due to the timing of transition costs and the realization of synergies. We anticipate that our second quarter 2003 diluted earnings per share will be in the range of $.21 to $.22, in line with our expectations.”

In conjunction with its first quarter earnings release, ARAMARK will discuss its results in a conference call broadcast live over the Internet on February 6, 2003 at 12:00 p.m. EST. Interested parties are invited to log onto www.aramark.com to listen to this webcast. A recording of the conference call will be available on that website until February 20, 2003.

About ARAMARK
ARAMARK is a world leader in providing managed services, including food, facility and other support services, uniform and career apparel, and childcare and early education. ARAMARK has leadership positions serving the business, education, healthcare, government, sports and recreation sectors. The company is headquartered in Philadelphia. ARAMARK provides services in 18 countries with approximately 200,000 employees.