Angelica Provides Update on Union Negotiations.ST. LOUIS, Mo. -- Angelica angelica (ănjĕl`ĭkə), any species of the genus Angelica, plants of the family Umbelliferae (parsley family), native to the Northern Hemisphere and New Zealand, valued for their potency as a medicament and protection against Corporation (NYSE NYSE See: New York Stock Exchange :AGL (programming) AGL - (Atelier de Genie Logiciel) French for IPSE. ), a leading provider of healthcare linen management services, and UNITE HERE UNITE HERE is a labor union with more than 450,000 active members in the United States and Canada, predominantly in the hotel, food service, apparel and textile manufacturing, laundry, warehouse, and casino gaming industries. , a union representing employees in approximately two thirds of Angelica's plants, provided employees an update on negotiations between the two parties today. For reference, Angelica has been subject to a corporate campaign conducted against it by UNITE HERE since January, 2004. Given the number of questions being asked by shareholders about this issue, the Company has decided to share the employee communication publicly. The employee notice is attached. Commenting on the notice, Steve O'Hara, Angelica's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "Rarely do we provide updates on the progress of any negotiation, whether the negotiation is to buy another business or settle a labor dispute. The reason for this position is because there are never any guarantees that a negotiation will conclude successfully. Nevertheless, because of the impact of these negotiations on so many of our employees, we agreed with UNITE HERE that an update to our employees was appropriate. We remain hopeful that we can resolve our outstanding differences with UNITE HERE." Angelica Corporation, traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol AGL, is a leading provider of textile rental and linen management services to the U.S. healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. market. More information about Angelica is available on its website, www.angelica.com Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, ability to mitigate work disruptions at our plants arising from a union's corporate campaign against the Company, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and healthcare benefits, the ability to attract and retain key personnel, the ability of the Company to recover its seller note and avoid future lease obligations as part of its sale of Life Uniform, the ability of the Company to accomplish its strategy of redirecting its resources to its healthcare linen management business in a timely and financially advantageous manner, unusual or unexpected cash needs for operations or capital transactions, the effectiveness of certain expense reduction initiatives, the ability to obtain financing in required amounts and at appropriate rates and terms, the ability to identify, negotiate, fund, consummate and integrate acquisitions, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission. May 13, 2005 Joint Statement By O'Hara and Raynor To All Angelica Employees The company's and the union's representatives are in the process of negotiating the outstanding labor relations issues. While the process is taking longer than anyone anticipated, we feel that it will be time well spent if we are able to reach a resolution of our differences. Substantial progress has been made and continues to be made towards a resolution. Both sides are negotiating in good faith towards a successful conclusion. ------------- ---------------- Steve O'Hara Bruce Raynor CEO General President Angelica Corporation UNITE HERE |
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