Fitch Ratings Affirms ARAMARK; Rating Outlook Changed To Positive.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 14, 2003

ARAMARK Corporation's (ARAMARK) 'BBB-' rating on its senior unsecured guaranteed debt is affirmed by Fitch Ratings. The Rating Outlook has been changed to Positive from Stable. This rating action affects approximately $2.1 billion of debt.

The rating reflects ARAMARK's strong competitive position, solid market share in food and support services and uniform and career services, as well as its client and geographic diversification. Consistent earnings and operating cash flow support ARAMARK's ability to operate successfully under somewhat leveraged conditions. Excellent client retention rates also contribute to earnings stability, with Food and Support Services having retention rates of about 95% and Uniform and Career at about 92%. Furthermore, subsequent to the successfully integrated ServiceMaster Management Services (SMS) acquisition, client retention rates at SMS improved to approximately 94% from 89% in 10 months time.

The Positive Outlook considers ARAMARK's continued improvement in leverage, coverage, and cash flow, and also considers management's commitment to maintaining a less leveraged balance sheet, despite ongoing acquisition activity. Combining decreasing leverage with higher levels of EBITDA due to high client retention, an increase in new client business, as well as continued productivity improvements, are anticipated to further improve credit protection measures.

In fiscal 2002, as a result of the challenging economic environment, ARAMARK's core revenue growth slowed. Excluding the effects of the SMS acquisition and other acquisitions, revenue grew by about 1% compared to growth of approximately 7-8% in fiscal 2000 and 2001. Revenues were negatively impacted by continued softness in the Business Services Sector, lower attendance and spending within the convention and tourism businesses, and a decline in Major League Baseball attendance. However, the SMS acquisition did provide the company with a significant growth vehicle as fiscal 2002 operating earnings increased 18% to $517 million and cash flow from operating activity minus capital expenditures increased 40% to $388 million. From 2000-2002, EBITDA as a percentage of sales has remained stable at 8.8%. Furthermore, leverage, as measured by Total Debt to EBITDA, decreased to 2.4 times (x) from 2.9x, with EBITDA coverage of interest increasing to 6.3x from 4.7x.