Sodexho Announces New Acceleration in Organic Revenue Growth for Fiscal 2007 across All Segments: + 8.4%

Regulatory News: SODEXHO ALLIANCE (PARIS:SW) (OTCBB:SDXAY), the global leader in most of its activities, today announced consolidated revenue for Fiscal 2007, which ended August 31, 2007. Revenue by activity In millions of euro   Fiscal 2006   Fiscal 2007   Organic growth(1)   Currency impact(2)   Acquisitions   Total change Food and Facilities Management Services:   -- North America 5,479 5,492 + 8.8% - 7.8% - 0.8% + 0.2% -- Continental Europe 4,148 4,388 + 5.1% + 0.1% + 0.5% + 5.8% -- United Kingdom and Ireland 1,370 1,475 + 6.1% + 1.6% - + 7.7% -- Rest of the World 1,434 1,591 + 15.3% - 4.6% + 0.2% + 10.9% TOTAL 12,431 12,946 + 8.1% - 3.8% - 0.16% + 4.1% Service Vouchers and Cards 373 447 + 20.1% - 2.5% + 2.1% + 19.7% Elimination of intragroup revenue (6) (8)         TOTAL 12,798 13,385 + 8.4% - 3.7% - 0.1% + 4.6% 1) Organic growth: increase in revenue at constant consolidation scope and exchange rates. 2) The currency impact is a negative 3.7%. However, Sodexho subsidiaries’ income and expenses are expressed in the same currency; hence, contrary to exporting companies, currency variations carry no operating risk. Commenting on Sodexho’s Fiscal 2007 revenue, Sodexho CEO Michel Landel said: "For the second consecutive year, organic growth improved two percentage points over the prior year. This excellent performance demonstrates acceleration in all our client segments. Client retention was close to 94%; comparable unit growth – or revenue growth on existing sites - was around 5%; and the business development rate, representing new contract awards, remained high at approximately 9%. As a result, operating profit progression for Fiscal 2007 (excluding currency impact) should be in the range of 12-15%. Our productivity actions to more effectively manage food and labor costs have enabled us to curb current inflationary pressures. At the same time, we have intensified our investments in human resources, information technology and communications. I remain fully confident that Sodexho will achieve its Ambition 2015 of 7% average annual compound revenue growth.” Organic revenue growth analysis (See table in Annex 2 and a selection of new clients in Annex 3) Food and Facilities Management Services North America: + 8.8%, with robust performance in all client segments Continental Europe: + 5.1%, led by continuing strength in Healthcare and Seniors United Kingdom and Ireland: + 6.1%, confirming a return to revenue growth Rest of the World: + 15.3%, representing double-digit growth in Latin America, Asia, Australia and Remote Sites. In North America, the comparison between Fiscal 2007 revenue and the prior year reflects the effect of a 53rd week of activity in Fiscal 2007 as Sodexho operates on a 52/53 week calendar as is consistent with industry practice in North America. The impact of the 53rd week on North America Fiscal 2007 revenue is estimated at around 1.2%. However, with the beginning of the university academic year at the end of the fiscal year, the impact on operating profit of this additional week is not significant. The Business & Industry segment (+ 8.9%) benefited from numerous favorable factors: stronger client retention improved business development in both Foodservices and Facilities Management. Several new contracts were awarded late in the fiscal year, including Genzyme in Massachusetts, the California State Auto Association in Glendale, California, and Franklin Templeton Investment Services in Florida the start-up in the last months of the fiscal year of a large mining sector contract in Canada with Nova Gold Organic growth of + 10.1% in the Healthcare and Seniors segments was driven by: excellent client retention, and revenue growth on existing sites, a result of extensive offerings well-adapted to the expectations of clients, patients and visitors as well as the full ramp-up of contracts won in previous years (such as Memorial Hermann Healthcare System and New York City Health & Hospital Corporation). Recent new contracts include York Central Hospital in Ontario, Canada, St. Anthony Hospital in Oklahoma and Penn Presbyterian Medical Center in Pennsylvania. With a + 7.6% increase in revenue, Education continued to benefit from increased student enrollment in universities, strong client retention and the demand for Facilities Management services. Several major contracts were recently signed, notably with the University of Illinois in Chicago, the University of Tennessee, New Jersey’s Drew University and California’s San Jose School District. In North America, Sodexho received several awards: Named one of the "15 Best Companies for Workforce Diversity” by Black Enterprise® magazine, one of the nation’s leading business publications. Selected as Community Partner of the Month in August by FEED NOVA SCOTIA in Canada for STOP Hunger’s impact on the lives of children. Honored by the U.S. Defense Department with the Pro Patria Award for its personnel policies making it easier for employees to serve as National Guard members and reservists. Won three Best Concept awards from Food Management Magazine for exceptional achievement and innovative thinking for its STOP Hunger/Feeding our Future program, its Circle of Customer Excellence training program and its Sweet Shots menu concept. In Continental Europe, Business & Industry reported + 4.3% growth from: continued strong growth in Spain and Central Europe and in the Defense segment in Sweden for both Food and Facilities Management services more modest performance in countries such as Italy and the Netherlands, linked to the economic environment and the rigorous application of a profitable growth approach to sales the ramping up of two significant contracts won by the Group, one for Facilities Management services for KLM at Schiphol airport in the Netherlands and the other for Foodservices at the Eiffel Tower in Paris. Important new contracts were won with Pan Auto in Russia, the Eksjö Garrison in Sweden and Galeries Lafayette and BHV in France. Growth of + 6.6% in the Healthcare and Seniors segments reflects: the breadth of the services offering strong business development during the previous year Recent new contracts awarded include the "12th of October” Hospital in Madrid, Spain, and Maison des Services Cancéropole in Toulouse, France. Growth in Education of + 6.0% reflects improvements in client retention. However Sodexho remains selective in development in the public sector. New clients include the Technical University of Delft and Avans Hogeschool in the Netherlands. Sodexho teams in Continental Europe saw their efforts rewarded during the year: In Spain, ISO 9001:2000 certification was renewed at all 318 sites where Sodexho provides Foodservices. In Poland, Sodexho was awarded the ”White Lily” certificate for food preparation meeting the highest hygienic and food safety standards. In the United Kingdom and Ireland, revenue rose by + 6.1%, providing further confirmation of the return to growth in Healthcare and Seniors and in Defense. The + 6.8% growth in Business & Industry was led by: relatively stable demand at corporate clients the full-year impact of contracts awarded in the prior year in Defense such as Catterick Garrison and the Royal Navy Base Support Contract robust activity levels in leisure and events during the summer months, for example at the Ascot Racecourse and the World Scout Jamboree at Chelmsford. Contracts recently awarded include, Thales Sapphire in Crawley, Astrium Cleaning in Stevenage and Portsmouth and eBay and Paypal Europe Services in Dublin. In Education, new contracts were won with Joseph Swan School in Gateshead and Taverham School in Norwich. Healthcare and Seniors registered organic growth of + 7.9%, driven by: improved client retention the full ramp-up of contracts opened in 2006, notably, recent PFI contracts which attained their normal activity levels accelerated new business development with the signing of important contracts for Facilities Management with the North Staffordshire hospitals and for Foodservices with Nuffield hospitals In the UK and Ireland, for the second year in a row, Sodexho teams were attributed with the BUPA Healthy Communities Big Tick award from Scottish Business in the Community for efforts to help students at inner city schools. In the Rest of the World, organic growth in Food and Facilities Management services remained particularly robust at + 15.3%, despite the completion in Remote Sites of certain infrastructure projects towards the end of the fiscal year.. Continued high raw material prices contributed to revenue growth in the Middle East, Africa and Australia, and in the mining sector in Latin America. Sodexho recently won a number of new contracts, such as Glencore Prodeco and Hospital Universitario San Ignacio in Colombia, Sundown and Fafen-Petrobras in Brazil, Dubaï World in the United Arab Emirates and Dodsal in Oman. In China and India, expansion continued at a rapid pace both in Foodservices and Facilities Management. Among recent contract signings in China were Dow Chemical R&D Center, Wuxi Hitech Incubator and Development Co. and Accenture. In India, new contracts included FLAME, the American School of Bombay, Cisco Systems, Jindal Steel and DLF Builders. Sodexho also received awards in several regions including in New Caledonia at the Goro Nickel Project where Sodexho was recognized for its contribution to the significant milestone reached of 1,000,000 hours worked with no lost time injuries. Service Vouchers and Cards Organic growth: + 20.1% Issue volume totaled 7.3 billion euro (up + 18.5% at constant consolidation scope and exchange rates) fueled mainly by Latin America, especially Venezuela. Organic growth of 20.1% reflected: Increases in voucher face value and in the number of potential beneficiaries in countries such as Venezuela, Belgium and France Success and continued innovation by the sales teams, who drove strong development, notably in Spain, a number of Latin American countries and Central Europe Principal contracts won at the end of the year included the Customs headquarters in Hungary (Food Pass), Coca-Cola in Poland (Gift Pass), Termoelectrica (Food Pass) and the University Hospital of Bucharest (Food Pass) in Romania. Acquisitions and reinforcement of Sodexho’s worldwide position On October 2, 2007, Sodexho completed the acquisition of 100% of Tir Groupé’s gift voucher business for a total of 143 million euro. With issue volume of around 300 million euro, Tir Groupé is a leading issuer of gift vouchers in France to both companies and local authorities. With the acquisitions announced and in progress since September 2006 (Tir Groupé in France, Vivaboxes in Belgium and VR in Brazil), Sodexho continues to reinforce its worldwide position in Service Vouchers and Cards. Conference call SODEXHO ALLIANCE will hold a conference call today to discuss Fiscal 2007 revenue. The call will begin at 8:30 am (Paris time). The call-in access number is +33 (0)1 72 28 25 82. The press release and the slideshow will be available on the internet by clicking on the link www.sodexho.com, under the "Latest News” section, beginning at 7:00 am. To access the rebroadcast of the conference call, please dial +33 (0)1 72 28 01 49, code: 205401 #. Financial communications calendar Fiscal 2007 results Thursday, November 15, 2007 at 9:00 a.m.: presentation for analysts and journalists. First Quarter 2008 revenue Wednesday, January 9, 2008. The announcement will be followed by a conference call. The above dates are provided for information only and are subject to change. About Sodexho Alliance SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the global leader in most of its activities, employing more than 332,000 employees on 28,300 sites in 80 countries as of August 31, 2006. Listed on Euronext Paris, the Group’s current market capitalization is 7.9 billion euro. This press release contains statements that may be considered as forward-looking statements and as such may not relate strictly to historical or current facts. These statements represent management's views as of the date they are made and we assume no obligation to update them. You are cautioned not to place undue reliance on our forward looking statements. Annex 1: Comparison of Consolidated Revenue     FY 2006   FY 2007     FIRST QUARTER (Sept. to Nov.) . Food and Facilities Management - North America 1,527,658 1,541,151 - Continental Europe 1,076,643 1,151,281 - United Kingdom and Ireland 332,971 365,713 - Rest of World 340,191 396,810 . Service Vouchers and Cards 82,525 98,321 . Elimination of intragroup Revenue -1,758 -1,765 3,358,230 3,551,511 SECOND QUARTER (Dec. to Feb.) . Food and Facilities Management - North America 1,390,868 1,348,714 - Continental Europe 1,034,727 1,084,770 - United Kingdom and Ireland 330,433 354,209 - Rest of World 337,770 369,136 . Service Vouchers and Cards 95,812 112,899 . Elimination of intragroup Revenue -1,524 -2,106 3,188,086 3,267,622 THIRD QUARTER (March to May) . Food and Facilities Management - North America 1,441,063 1,420,978 - Continental Europe 1,082,213 1,121,213 - United Kingdom and Ireland 332,960 344,416 - Rest of World 377,757 408,950 . Service Vouchers and Cards 94,505 111,953 . Elimination of intragroup Revenue -1,780 -1,992 3,326,718 3,405,518 FOURTH QUARTER (June to August) . Food and Facilities Management - North America 1,119,871 1,181,529 - Continental Europe 954,624 1,030,597 - United Kingdom and Ireland 373 371 410 701 - Rest of World 378,429 415,819 . Service Vouchers and Cards 100,360 123,559 . Elimination of intragroup Revenue -1,333 -2,156 2,925,322 3,160,049       % Variations TOTAL FISCAL YEAR at current at constant exchange rates exchange rates . Food and Facilities Management     - North America 5,479,460 5,492,372 0.2% 8.0% - Continental Europe 4,148,207 4,387,861 5.8% 5.6% - United Kingdom and Ireland 1,369,735 1,475,039 7.7% 6.1% - Rest of World 1,434,147 1,590,715 10.9% 15.6% . Service Vouchers and Cards 373,202 446,732 19.7% 22.3% . Elimination of intragroup Revenue -6,395 -8,019     TOTAL 12,798,356 13,384,700 4.6% 8.3% This growth is made up as follows : - Organic growth 8.4% - Acquisitions (*) -0.1% - Currency effect - 3.7% (*) net of disposals Annex 2: Food and Facilities Management services revenue by segment Consolidated Group In millions of euro Fiscal 2007 Fiscal 2006 Organic growth (1) Business & Industry Healthcare and Seniors Education 6,480 3,398 3,068 6,147 3,261 3,023 8.1 % 9.0 % 7.0 % TOTAL 12,946 12,421 8.1 % North America In millions of euro Fiscal 2007 Fiscal 2006 Organic growth (1) Business & Industry Healthcare and Seniors Education 1,342 2,038 2,112 1,367 1,995 2,117 8.9 % 10.1 % 7.6 % TOTAL 5,492 5,479 8.8 % Continental Europe In millions of euro Fiscal 2007 Fiscal 2006 Organic growth (1) Business & Industry Healthcare and Seniors Education 2,597 1,056 735 2,468 986 694 4.3 % 6.6 % 6.0 % TOTAL 4,388 4,148 5.1 % United Kingdom and Ireland In millions of euro Fiscal 2007 Fiscal 2006 Organic growth (1) Business & Industry Healthcare and Seniors Education 1,085 240 150 1,002 219 149 6.8 % 7.9 % -1.2 % TOTAL 1,475 1,370 6.1 % Rest of the World In millions of euro Fiscal 2007 Fiscal 2006 Organic growth (1) Business & Industry Healthcare and Seniors Education 1,456 64 71 1,310 61 63 +15.5 % +9.6 % + 18.5 % TOTAL 1,591 1.434 +15.3 % (1) Organic growth: increase in revenue at constant consolidation scope and exchange rates. Annex 3: Selection of new clients Foodservices & Facilities Management North America Business & Industry Genzyme, three sites (860 employees, foodservices, vending); California State Auto Association, Glendale, California (530 employees, foodservices); Franklin Templeton Investment Services, St Petersburg, Florida (1,400 employees, foodservices); Cox Communications, Rancho Santa Margarita, California (900 employees, foodservices) ; HSBC, Sioux Falls, South Dakota (1,000 employees, foodservices, vending); State Street Bank-Adams Bldg, nine sites, (13,000 employees, vending); Wyeth BioPharm, Andover, Massachusetts (2,500 employees, vending); Suffolk University, Boston, Massachusetts (800 employees and 8,300 students, vending) Healthcare and Seniors McAllen Medical Center, McAllen, Texas (two sites, 660 beds); Lawrence Hospitals, Bronxville, New York (280 beds, facilities management, food and nutrition services, patient transportation); Pottstown Memorial Medical Center, Pottstown, Pennsylvania (220 beds); Memorial Hospital, Chattanooga, Tennessee (370 beds, foodservices and nutrition); Covenant Retirement Community, 15 sites (5,300 residents); York Central Hospital, Canada (420 beds, foodservices and facilities management); St. Anthony Hospital, Oklahoma City, Oklahoma, (400 beds); Penn Presbyterian Medical Center Philadelphia, Pennsylvania, (270 beds) Education University of Tennessee, Knoxville, Tennessee (stadium management, concessions) ; University of Alaska, Anchorage, Alaska (19,750 students, dining) ; Weber State University, Ogden, Utah (18,820 students, dining) ; Drew University, Madison, New Jersey (2,520 students, dining) ; Batavia United School District, Batavia, Illinois (6,020 students) ; Beecher Comm. United School District, Beecher, Illinois (890 students) ; Irvington Public School District, Irvington, New Jersey (7,910 students) ; Jamestown School District, Jamestown, Rhode Island (580 students) ; Wauwatosa School District, Wisconsin (7,100 students) ; Warren County Career Center, Lebanon, Ohio (700 students) ; San Jose Unified School District, San Jose, California (31,130 students) ; Asbury Park School District, Asbury Park, New Jersey (3,350 students) ; Jefferson School District, Monroe, Michigan (2,900 students); University of Illinois, Chicago, Chicago, Illinois, (foodservices, 25,700 students) Continental Europe Business & Industry Galeries Lafayette HQ, France (5,000 meals, foodservices); BHV, France (1,000 meals, foodservices); RIE la Maison des services Cancéropôle, France (500 meals, foodservices); Société Générale HQ, France (1 000 meals, foodservices); Rijkswaterstaat Westraven, Netherlands (2,000 meals, foodservices); Pan Auto, Russia (facilities management); Defense Garrison at Eksjö, Sweden (foodservices) Healthcare and Seniors Cafeteria Hospital 12 October, Spain (1 300 meals, foodservices); Stichting Cordan, Netherlands (300 meals, foodservices) Education Mairie de Troyes, France (2,080 meals, foodservices); TU Delft, Netherlands (19,500 meals, foodservices); Avans Hogeschool, Netherlands (19,800 meals, foodservices) UK & Ireland Business & Industry ING Real Estate, London (200 employees, foodservices); Bear Stearns, London (850 employees, foodservices); Northern Way Properties, Manchester (1,000 employees, facilities management); Black & Veatch, Immingham (foodservices and facilities management) ; Astrium, two sites (3,400 employees, facilities management); Ebay, Dublin (350 employees, foodservices and facilities management); PayPal Europe Services, Dublin (850 employees, foodservices and facilities management); Thales Sapphire, Crawley (2,500 employees, foodservices); Defense British Forces, Cyprus (10,000 customers, facilities management); Healthcare North Staffordshire PFI, two hospitals (facilities management and technical maintenance) Education Truro High School for Girls, Truro (520 students, foodservices); Harris City College, London (210 students, foodservices); London Borough of Richmond, 39 schools (11,700 students, foodservices); Joseph Swan School, Gateshead, (foodservices, 1,200 students); Taverham High School, Norwich, (foodservices, 860 students) Rest of the World Business & Industry Sundown, Brazil (3,000 customers, foodservices); Total Access Communication, Thailand (1,000 employees, foodservices); TelstraClear Limited, New Zealand (1,200 employees); Nestlé, Australia, two sites (900 employees, foodservices); Dow Chemical R&D Center, China (1,600 employees, foodservices); Shanghai Caohejing Export &Processing Zone Administration Committee, China (2,000 employees, foodservices) ; Wuxi Hi-tech Incubator and development Co., Ltd., China (2 000 employees, foodservices); Effem Foods Co.Ltd. -Snack site, China (1,800 employees, foodservices); Accenture, China, three sites (320 employees, security); FLAME, Pune, India, (1,000 meals, foodservices); Cisco Systems, Bangalore, India, (1,200 meals, foodservices); Jindal Steel, Bellary, India (facilities management); DLF Builders, Delhi, India (facilities management) Healthcare and Seniors Hospital Universitario San Ignacio, Colombia (290 beds, foodservices); Samitivej Srinakarin Hospital, Thailand (400 beds, laundry); Qingheyuan Cherish-yearn Seniors Home, China (2,000 employees, foodservices); Qingdao City Chengyang People's Hospital, China (800 beds, foodservices); Education American International School, China (400 employees, security); American School of Bombay, Mumbai, India, (600 meals, foodservices); Singapore American School, Singapore (foodservices) Remote Sites Glencore Prodeco, Colombia, four sites (2,000 customers, foodservices, hospitality, cleaning and gardening); Yagana – Sipetrol, Argentina (foodservices); CDB, Peru (450 customers, foodservices and facilities management); Fafen – Petrobras, Brazil (1,100 customers, foodservices); Dubaï World, United Arab Emirates (2,400 employees, foodservices); Schlumberger, Nigeria (foodservices and facilities management) ; Dodsal, Oman (1,300 employees, foodservices, cleaning and laundry); Service Vouchers and Cards CENTRAL EUROPE: Hungary: The National Headquarter of the Customs Office (Food Pass, 7,000 beneficiaries) Poland: Coca-Cola (Gift Pass, 3,200 vouchers); ICI (Motivation Pass, 200 vouchers); Poludniowy Koncern Energetyczny (Gift Pass) Romania: Termoelectrica (Food Pass, 1,790 beneficiaries); Hospital University of Bucharest (Food Pass, 2,900 beneficiaries) WESTERN EUROPE: Belgium: Degussa (Gift Pass, 1,000 beneficiaries); GE (Meal Pass, 420 beneficiaries) France: Lancaster (Meal Pass, 250 beneficiaries); URSAFF (Meal Pass, 300 beneficiaries) UK: News International Group (Education Pass, 100 beneficiaries) LATIN AMERICA: Argentina: Gasnor (Food and Meal Pass, 280 beneficiaries) Brazil: Fidelity National Financial (Meal and Mobility Pass, 3,400 beneficiaries); Organizacion Brasileiro de prestaciones de servicios (Food Pass, 1 280 beneficiaries); Public Ministry of the State Espirito (Food Pass, 310 beneficiaries) Mexico: Nycomed (Food Pass, 130 beneficiaries) Peru: TNT (Food Pass, 120 beneficiaries) ASIA: China: Microsoft (Meal Pass) India: Capgemini (Meal Pass, 540 beneficiaries); RBS (Meal Pass, 400 beneficiaries)