AAP Alpha Airports

RNS Number:7891E
Alpha Airports Group PLC
03 November 2004



                                                                 3 November 2004


                          ALPHA AIRPORTS GROUP PLC

                  ACQUISITION IN TURKEY AND NEW CONTRACT WINS


Acquisition

Alpha Airports Group Plc, the UK's leading provider of catering and retailing
services for airlines and airports, is pleased to announce that today it has
signed a contract to acquire 60% of the share capital of Istanbul Duty Free
("IDF"), a company operating and based in Turkey. The consideration payable at
closing will be Euro6.0 million (#4.2 million) to be satisfied in cash with two
further instalments of Euro0.5 million (#0.3 million) payable in September 2008 and
September 2009 respectively. This additional consideration is conditional upon
the incumbent shareholders remaining as shareholders and being actively involved
in the business at these dates.

IDF has been operating for three years and operates four duty free retail
Airport concessions at Ankara and Dalaman Airports, duty free BORDER="0" shops
at Kapikule, duty free Port shops at Istanbul, Bodrum, Kusadasi and Antalya and
provides inflight retailing to three local airlines.

In the year ended 31 December 2003, IDF reported sales of TL32.3 billion (#11.9
million), a profit before taxation of TL4.4 billion (#1.6 million) and had net
assets of TL4.2 billion (#1.5 million).

This acquisition expands the Group's retailing presence across Europe and
provides further opportunities to expand our flight services capabilities.

Closing is conditional upon approval of the transaction by the anti-trust
commission in Turkey, which is expected to take four weeks.


New Contracts

Alpha is also pleased to announce three new contract wins which together are
worth over #200m over the life of the respective contracts:-

   *Alpha Flight Services has been awarded a new five year contract with
    American Airlines (AA) to supply all their flight catering requirements at
    three UK airports - Heathrow, Gatwick and Glasgow. The contract commences
    from 1 February 2005, with AA currently operating 13 long-haul flights per
    day to the United States from Heathrow, 4 long-haul flights per day from
    Gatwick, and a summer daily service from Glasgow.

   *Our Alpha Retail business has been awarded a new 7 year contract to
    provide confectionery, tobacco and news at Birmingham International Airport,
    Terminal 1, at four shops under Alpha's World News brand. The first 3 shops
    will be phased in during January 2005, with the remaining airside shop being
    completed by December 2006. Once the shops are fully operational this
    contract has an annual sales value of #10 million, and will require #1
    million of shopfit investment. We currently operate World News shops at
    Birmingham Terminal 2, so this is a further major development for Alpha at
    this growing UK airport.

   *In the USA, we have been successful in securing a 5 year contract
    extension at Orlando International Airport, Florida, with 3 one-year options
    available, provided both partners concur. This contract has current
    annualised sales of #6.5 million, and replaces our existing loss making
    contract which expires at the end of July 2005. The contract extension will
    result in a complete upgrade of the existing shops at a cost of #1.1
    million.

As we reported at our Interim results in September, the securing of this extra
business, whilst providing medium term benefits to the Group, will result in
additional one-off costs of over #1 million being incurred in the current
financial year.


Commenting on the Group's acquisition in Turkey and contract wins, Kevin Abbott,
Chief Executive said:

"The IDF acquisition in Turkey is a further stage in the development of our
business in Europe. IDF carries out many of the same activities as Alpha, and is
an excellent fit with our business. The Turkish market is opening up, and we see
good opportunities for growth. This well-run family business will benefit from
our international expertise and credentials, and will enable us together to
capitalise on these significant development opportunities.

At the time of the Interims, we reported that our pipeline of development
opportunities was running at unprecedented levels, and I am pleased to be able
to announce today three new contract gains for Alpha. We are delighted to have
been awarded the major contract with American Airlines in a competitive tender
process. It is a credit to our London Heathrow and UK Flight Services quality
and service record that American Airlines have made this significant change. We
are also delighted to have extended our relationships with both Birmingham
International and the Greater Orlando Aviation Authority, both airport partners
offering Alpha exciting retail development and enhanced partnership
opportunities."


Enquiries:

Alpha Airports Group Plc
Kevin Abbott, Chief Executive                     Tel: 020 8580 3200
Heather McRae, Finance Director                   Tel: 020 8580 3200

Gavin Anderson & Company
Laura Hickman                                     Tel: 020 7554 1400
Website: www.alpha-group.com


Notes to Editors:

Alpha Airports employs over 5,000 people, operating from 150 catering and
retailing outlets and 69 airports in 12 countries across 5 continents

Alpha Flight Services

   *Provides in-flight catering, bonded stores, catering logistics and
    management services for over 100 airlines from 62 units in 8 countries.

   *With our retail management services, Alpha Inflight Retail is a European
    leader in the fast-growing market for on-board sales of food, drinks and
    gifts.

Alpha Retail

   *Alpha operates at 12 UK airports, 2 North American airports and 3
    Airports in the Indian sub-continent with Alpha Airport Shopping and Alpha
    Duty Free in Europe, plus Alpha Duty and Tax Free internationally.

   *Alpha also operates specialist shops at 17 airports in the UK and USA.
    World News shops sell books, magazines, confectionery and newspapers.
    Glorious Britain offers high-quality destination gifts. Zinq is Alpha's
    fashion accessory boutique concept and Bookbound a specialist stand-alone
    book shop.

   *Alpha operates restaurants, cafe and bar services at 13 UK and European
    airports. World News Cafe, Bar 08, Deli Sandwich Bar, Food Hall and the
    Brasserie and Bar are the main brands.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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