IFCO Reaches Non-Prosecution Settlement on Immigration Investigation

IFCO SYSTEMS North America, Inc. ("IFCO”) today announced that it has reached a civil non-prosecution agreement with the U.S. Department of Justice. The agreement removes the prospect of any criminal charges against IFCO by the United States government as a result of the immigration enforcement action launched against the Company on April 19, 2006.

"We are pleased and gratified to have reached this non-prosecution agreement with the government,” said Karl Pohler, Chief Executive Officer of IFCO SYSTEMS N.V. "IFCO is committed to doing business with the highest ethical standards, and to complying with all federal and state employment laws and regulations. Today’s agreement reflects that commitment.”

"Over the last 32 months, we at IFCO have significantly upgraded our compliance procedures to go well beyond what the law requires. Today I am confident that IFCO is the most compliant company in the industry,” said Dave Russell, President of IFCO SYSTEMS North America, Inc. "I am certain that the government’s willingness to enter into this non-prosecution agreement reflects a recognition of all of our efforts.”

The Company cooperated fully with the government throughout the investigation, and has agreed to pay a financial penalty as part of this settlement. The Company has also agreed to take a number of steps, many of which have previously been implemented, to strengthen and standardize employment and Form I-9 procedures throughout the Company’s more than 150 locations across the nation.

For example:

• IFCO has enrolled in the Department of Homeland Security’s E-Verify program and provides all local managers with enhanced I-9 training. E-Verify is a voluntary, online verification system that allows employers to confirm the eligibility of new hires by checking the personal information they provide against federal databases.

• IFCO has hired a Vice President for Corporate Compliance, who has developed and implemented a comprehensive legal compliance program.

• IFCO has hired several additional Human Resources managers to conduct more frequent field audits of local facilities, including I-9 compliance audits.

• IFCO has hired Internal Auditors responsible, among other things, for examining processes to better assure legal compliance.

• IFCO has added numerous additional Payroll employees, and trained them on I-9 and E-Verify processes.

• IFCO has invested in cutting edge employment compliance software, and installed it at each IFCO hiring facility.

• IFCO has restructured its management team to better oversee day-to-day operations (including workforce hiring) in the field.

All of these actions are designed to go above and beyond current regulations and mandates.

IFCO’s employees are central to the Company’s success. The Company’s business has thrived by offering a workplace environment free of discrimination and providing a competitive level of compensation and benefits, including health, dental, disability and life insurance, paid vacation, and participation in the Company’s 401(k) program.

Today’s settlement and agreement not to prosecute apply only to the Company and do not address the previously-disclosed prosecutions of IFCO employees accused of various immigration-related offenses.

IFCO is committed to preventing the employment of unauthorized workers in its workforce. IFCO remains grateful for the loyalty of its customers, and looks forward to growing with them in the years to come.