Delta Air Lines Forms Strategic Partnership With Gate Gourmet Holding AG And i2

Market Wire, 20050229

Delta Air Lines (NYSE: DAL) today announced the formation of a strategic airline catering partnership with e-gatematrix, a new business formed by Gate Gourmet Holding AG and i2 Technologies, Inc. (NASDAQ: ITWO). Under the partnership, e-gatematrix will assume responsibility for catering-related administrative and tactical activities associated with the provisioning of Delta's in-flight food service. Delta will maintain control of activities such as customer service, brand management, quality assurance and operational interfaces.

This new long-term arrangement will provide Delta with a single point of accountability across all catering functions, allowing for streamlined processes and elimination of redundancies. Customers will benefit from improved product consistency and quality, as well as Delta's ability to react more quickly to changing passenger needs and desires.

"This is an innovative approach to managing an airline's catering functions, one that Delta is excited to be undertaking, and one that we feel will position Delta as a leader in the industry," said Vicki Escarra, Delta's executive vice president - Customer Service. "Delta sought to form a partnership that would allow us to manage our catering operations more effectively, enabling us to strengthen our focus on meeting the needs of our customers. The operational and financial benefits we gain from our partnership with e-gatematrix will allow us to do just that."

E-gatematrix will manage menu planning and design, sourcing and procurement, inventory and equipment ownership, transportation and distribution, and supplier and caterer management. i2 provides solutions that will allow e-gatematrix to manage bid-auction capabilities, as well as optimize supply chains and inventory for equipment, food and related products and services. There will be no job losses at Delta as a result of this partnership.

"In addition to the operational advantages Delta will achieve, we anticipate an annual reduction in operating costs of approximately $40 million when the partnership with e-gatematrix is fully implemented," said Ed West, Delta's executive vice president and chief financial officer.

About Gate Gourmet

Gate Gourmet Holding AG (www.gategourmet.com), which is domiciled in Zurich, is a fully-owned subsidiary of SAirRelations, the catering, travel retail and hotel division of the SAirGroup (www.sairgroup.com). Gate Gourmet is one of the world's biggest providers of airline catering services, with 150 flight kitchens in 34 countries on all continents. The company and its 30,000 staff serve some 250 airline customers including Delta Air Lines, United Airlines, American Airlines, Northwest Airlines, British Airways and Swissair, and generated a total operating revenue of CHF 2.6 billion last year. Over the years, Gate Gourmet has gained a reputation of constant innovation, making it the benchmark of the airline catering industry.

About i2

i2 is the leading global provider of intelligent eBusiness solutions. Founded in 1988, i2's vision is to add $50 billion of value for its customers by the year 2005. i2 is headquartered in Dallas, has approximately 3,400 employees and maintains offices worldwide. For additional information, visit i2 on the Web at www.i2.com.

About Delta

Delta's goal is to become the #1 airline in the eyes of its customers, flying passengers and cargo from anywhere to everywhere. Passengers already choose to fly Delta more often than any other airline in the world, and the carrier was named "Best-Managed Major Airline" in 1999 by Aviation Week & Space Technology magazine. Customers have access to a global network of 5,360 flights each day to 356 cities in 57 countries on Delta, Delta Express, Delta Shuttle, the Delta Connection carriers and Delta's Worldwide Partners. For more information, visit Delta at www.delta-air.com.