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FOOD for THOUGHT Issue 16 May 2005 A newsletter for partners and friends of CPCS we cherish...

In This Edition Service Excellence in a New Era... 3 Overseas Best Caterer of 2003 4 1st Runner up - Gone to CPCS Heart Warming Trip to India 9 British Airways Recognizes CPCS as 4 a Partner in Excellence... Pedal for Those Who Can't... 9 CPCS Sponsorship for the 18th Pedal Kart Grand Prix Wok the Talk... 5 Ride High with New Hi-Loaders in CPCS 5 Blend in with Nature... 10 Eco-Walk to Sha Lo Wan Safety Heroes... 2004 Airport Staff 6 Safety Recognition Scheme CPCS Offered Kind Hospitality... 10 Charity Airport Tour Aeroflot... New First & Business Class 6 In-flight Service in Hong Kong Eyes on Hygiene... 7 Our New Chinese Cuisine Consultant 11 Welcome to New Head of 11 Marketing and Customer Services Department Wings... We Care... Donations for Tsunami Victims 8... and Farewell to Marketing and 11 Customer Services Manager Leslie An Applause to Vietnam Air Caterers 12 News Update for 12 Cebu Pacific Catering Services Management Movements 12 CATHAY PACIFIC CATERING SERVICES 11 Catering Road East, Hong Kong International Airport, Lantau, Hong Kong Telephone : (852) 2116 2288 Fax : (852) 2765 7355 Sita : HKGHMCX We welcome your comments on our newsletter. Please contact Ms. Wings Mok at Telephone : (852) 2116 2013 Fax : (852) 2765 7355 E-mail: wings.mok@cpcs.com.hk

Service Excellence in a New Era... 2004 did of course come with its own "unique" challenges for the global aviation industry and Cathay Pacific Catering Services (CPCS). Security concerns continued to be a feature and as a result of high fuel prices, what had promised to be a much more profitable year for the airlines was actually quite the opposite, with industry analysts predicting a consolidated industry loss of more than US$4 billion for the year. Nevertheless, given the issues faced by the international aviation markets, our results were encouraging. Passenger numbers increased significantly, over the previous year, and as a group I'm pleased to say that we have provided a record number of meals. Alex Chau, CEO Our profitability can only be attributed to the exceptional professionalism exhibited by both management and staff in the continued efficient and effective use of our resources. My sincere thanks to you all for ensuring that we controlled our costs and remained a viable entity. Nevertheless, our results cannot give us a sense of complacency and we must be both prudent and vigilant in 2005. It should be noted that although we have been successful in maintaining our customer base, it has only been achieved in working closely with our customers to reduce their own operating costs; average meal prices have gone down, operational and commodity costs have gone up, and as a result, our yields have continued to decline at an alarming rate. We must, therefore, ensure that we continue to provide a "seamless" service for all of our customers, whilst simultaneously lowering costs and being more innovative in the products and services we develop. We also need to respond quickly in facing whatever new challenges may be out there in the second half of the year. One market segment that we all need to look at more closely is the emergence of Low Cost Carriers (LCC); I do believe, that if they haven't already arrived in your area of operation, then they will do so in the very near future. We need to embrace these new airlines, LCCs have a specific market and are focused on developing a new passenger base that wasn't there before. Although they may take some traffic from our full-service airline customers, they are more likely to provide us with new opportunities to provide alternative products and services, albeit in a completely different guise to the ones we provide now. Whoever we work with, we must guarantee that our partnerships continue to be based upon trust, and the desire to provide the very best products and services possible. We have, of course, demonstrated our professionalism in yet another turbulent year, we have won awards, we have gained new customers in 2004 and glad to say, we have also acquired a new customer recently. If we can continue to prudently manage our resources, for the benefit of all our stakeholders, then CPCS can look to the future with confidence and know that we are providing secure jobs and prospects, for everyone in the organisation. Once again, my heartfelt thanks, to each and every one of you, for all of your efforts over the past year and I sincerely hope that the rest of the year of the Rooster and 2005 bring us all wealth, health and happiness... 3

Overseas Best Caterer of 2003 1st Runner up - Gone to CPCS 1 CPCS has won the Silver Prize of All Nippon Airways' "Overseas Best Caterer" of the year 2003. Mr. Angus Barclay, General Manager, Ms. Clara Ma, Commercial Manager and Mori-san, our Japanese chef were all invited to attend the reception of the award, which was held at Narita ANA Hotel on 14th October, 2004. The Silver Prize that CPCS won reflected CPCS' high performance over a variety of criteria such as in-flight meal quality, hygiene control, bacteria investigation, incidents of foreign articles, equipment control, loading quality and routine handling evaluation. The group effort of CPCS means that it could never succeed without good teamwork of its staff members. Let's keep it up! 1 From left: Torahiko Sato (ANA), Shun-Ichi Furue (ANA), Mori Shizuaki, Clara Ma, Junko Yamauchi (ANA) and Angus Barclay 2 2 "Overseas Best Caterer" Award British Airways Recognizes CPCS as a Partner in Excellence... CPCS was honoured to be awarded by British Airways as one of their "Partners in Excellence 2003/04". The award is in recognition of our ability to deliver a safe and consistent catering product which has been fundamental to British Airways' success throughout the year. Once again, such award is to recognize us as a supplier which does our utmost to provide the finest service to our customers. The above awards mean a lot to CPCS. They serve as an incentive and a drive behind every one of us towards a new horizon of excellence together. "Partners in Excellence 2003/04" Award 4

Wok the Talk... In recognizing the constant growth in demand for Chinese cuisine, CPCS "woks" the talk, and expands its wok station and steaming pot facilities. The HK$2 million investment will aid production of Chinese cuisine in even larger volumes with optimised processes and labour. This new equipment is one of our milestones showing CPCS' continual commitment to meeting our customers' needs, exceeding their expectations and satisfying their taste buds. New wok station! Growth for business! Chef Cheung and Chef Paul enjoy cooking at the new wok station! Ride High with New Hi-Loaders in CPCS CPCS upgraded its equipment with a delivery of new hi-loaders as part of its continual improvement plan. The purpose of introducing the new catering trucks is to enhance our operational efficiency as well as customer service. The chilling system in the new catering trucks allows the temperature of the trucks to come down even more quickly and hence further raises our efficiency and quality standards. In 2004, 4 new hi-loaders with the capacity of 16 tons were introduced in CPCS. Show off time for our new hi-loaders! Made in Bangkok and Singapore, these new vehicles were also installed with side doors for easier access. Moreover, the new hi-loaders are equipped with a new transmission gear box. Instead of using a manual gear-stick, the drivers just need to press a button for different driving mode for forward, reverse and neutral positions. This design allows drivers to focus on the busy traffic in the ramp area instead of the operation of the truck. 5

From left: Simon Tam (OPS), Raymond Au (OPS-CXO), Sunny Chow (OPS-ITO), Angus Barclay, Ronald Lau (PER), Kuby Hong (PER) Safety Heroes... 2004 Airport Staff Safety Recognition Scheme In order to recognize airport staff who are exemplary safety role models for other staff, the Airport Authority launched the 2004 Airport Staff Safety Recognition Scheme. Mr. Sunny Chow and Mr. Shum Fuk Shing of CPCS were presented the awards on 25th October in recognition of their strong concept in safety and putting it into action. They helped prevent any accidents from happening and made well thought out safety suggestions to CPCS. Being ramp safety ambassadors, they provide ramp safety briefings to our ramp operation staff regularly for the purpose of raising their safety awareness. Moreover, both of them took the initiative to communicate with AA's Duty Manager to discuss ramp safety issues, role models indeed. Aeroflot... New First & Business Class In-flight Service in Hong Kong Russia's leading air carrier Aeroflot Russian Airlines launched its new first class and business class on its Hong Kong - Moscow Route at a press conference and cocktail reception at the Grand Hyatt. Flights between Moscow and Hong Kong are now operated by Aeroflot and its code share partner Cathay Pacific Airways using Boeing 767 aircraft. Mr. Alexey Sumchenko, Aeroflot's General Manager - Hong Kong, was joined by Mr. Andrey Smorodin, Consul General for Russia in Hong Kong, Mr. Lev Koshlalov, Aeroflot's Deputy Director General Commercial from Moscow, Cathay Pacific's General Manager Internetional Affairs, Mr. Ian Callender and Cathay Pacific Catering Services' Executive Chef, Mr. Jorg Kubisz for the presentation which included a demonstration of the new in-flight catering services and food by Aeroflot flight crew, and a show of the elegant new uniforms which reflect the airline's distinctive new silver, orange and dark blue livery. 1 From left: Aeroflot crew, Ian Callender, Alexey Sumchenko, Lev Koshlalov, Aeroflot crew, Andrey Smorodin 2 From left: Jorg Kubisz, Aeroflot crew, Lev Koshlalov, Aeroflot crew, Alexey Sumchenko 1 2 6

Eyes on Hygiene... To create awareness and to enforce proper hygiene standards, Production Department has been conducting a hygiene blitz once a week. Furthermore, Production Department and Quality Assurance Department launched a "100% Error Free Campaign" named "Eyes on Hygiene" in October 2004. The main objective of this campaign is to motivate Production staff to follow exemplary hygienic practices so that the hygiene standard is maintained at the highest level. This campaign is divided into four quarters, and related to four different hygiene tasks (as shown in the table). "100% Error Free Campaign" Billboard Quarter Period Theme 1 Oct 04 to Dec 04 Grooming Grooming 2 Jan 05 to Mar 05 Don't forget hand washing 3 Apr 05 to Jun 05 Work place food safety: Equipment and food storage 4 Jul 05 to Sep 05 Hygiene Quiz: Risk of food contamination 1 Some of the winners (from left): Ma Ching Chung (BUT), Lai Hon Lok (BUT), Kwong Chi Ming (BUT), Ming Kin Hung (BUT), Mui Wai Bun (SPML), Wong Chi Kin (BUT) The first quarter "Grooming Grooming" was satisfactorily ended. All Production staff showed their interest in this campaign. They participated in the on-site quiz actively and were willing to correct any errors. The award presentation was held on 28th February 2005, and managed by our Executive Chef, Jorg Kubisz. The winners - Butchery and Special Meal sections - were greatly appreciated because of their good performance. They are becoming the Hygiene Super Stars in Production area. Other guys from production, CATCH THEM UP! Staff participating in the hygiene blitz! 7

We Care... Donations for Tsunami Victims The death toll continued to climb in one of the most powerful earthquakes in forty years that unleashed a tsunami which ravaged South and Southeast Asia. Anywhere from 228,000 to 310,000 people are believed to have died as a result of the tsunami, and the count is not yet complete. Some are missing, feared killed. Management of CPCS immediately led and encouraged staff to play their part in the donation to the Hong Kong Red Cross - South Asia Relief Fund. CPCS has already contributed HK$120,000 for the disaster relief fund. In addition to that, we have made contributions to the relief effort in other ways. CPCS staff have been contributing to help those in need by donating to the UNICEF "Change for Good" fundraising programme which for three months was sent to South Asian relief work. Collections were made in the CPCS building and as of 28th January, we have collected HK$21,201.58. In addition, we participated in a 2-day fund-raising event organized by CX, and donated 400 homemade cookies. With the help of two of our chefs, Mr. Mak Lok Tin and Mr. Fung Hung Kwok, all cookies were sold out. Proceeds will go to support disaster relief efforts. Thank you all for your effort to make the world a caring and loving place to live. Our General Manager, Angus Barclay, presented the cheque to Lady Wu, Assistant Directer of the Hong Kong Red Cross From left: Daisy Ng (CX crew), Fung Hung Kwok (CPCS), Mak Lok Tin (CPCS), Louisa Lai (CX ISD) From left: Fung and Mak of CPCS showed their love and support through their homemade cookies 8

Heart Warming Trip to India Four colleagues from CPCS, together with other 30 companions from Cathay Pacific Airways, joined a field trip co-organized by CX and The United Nations Children's Fund. They stayed in Mumbai, India from 18th to 22nd September to see the operations of UNICEF there, and get to know how the funds raised through the "Change for Good" programme on CX flights is used for improving the lives of children there. Before the trip, participants took part in a toy sale and fund raising event, and gathered totally HK$61,000 for UNICEF in India. "Change for Good", which started from 1991 on CX flights, encourages travellers to donate foreign change to UNICEF on their return trips. Last year, over HK$7 million was raised, making the total raised since the start HK$52 million. A little goes a long way. Our spare change could help make a significant difference to the lives of all underprivileged children in India. Please give generously while enjoying your travel! Children from India welcome the team from CPCS and CX Pedal for Those Who Can't... CPCS Sponsorship for the 18th Pedal Kart Grand Prix The Pedal Kart Grand Prix is organized annually by the Hong Kong Human Powered Vehicle Association and the Round Table to raise money for the less fortunate. This time the event took place at Victoria Park on the 27th and 28th November 2004. The theme of this event was to encourage athletic excellence while promoting charitable acts. Its motto is "Pedal for Those Who Can't". This long-established charity race in Hong Kong has raised over HK$23 million for charity since its inception in 1986. The concept was deceptively simple: teams of enthusiastic people design, engineer, build, train and race in Pedal Karts to raise money for charity. Teams which managed to successfully combine the three main aspects of the race do well: that is to design a kart capable of winning, build a kart well enough so that it survives the race, and train a team capable of lasting the race. Although CPCS did not send any team to this meaningful event, we did sponsor food and beverage to the teams of Cathay Pacific Airways to ensure the peddlers neither went hungry nor thirsty, giving our support to them and the event. Cathay Pacific Airways' Pedal Kart Seems to have lots of fun! 9

Blend in with Nature... Eco-Walk to Sha Lo Wan 1 CPCS is always supportive of charity and gives confidence to the staff to participate in events for good causes. In December, CPCS co-organized an Eco-Walk to Sha Lo Wan with the Produce Green Foundation. The walk raised funds to promote organic farming and to develop environmental education activities. Produce Green Foundation is a non-profit charitable organization established in 1988 by a group of local enthusiasts concerned about modern farming and protection of the environment. Through various activities, the message of nature conservation to all walks of life was spread, urging everyone to maintain a harmonious relationship with nature. 1 The gang of nature lovers started off the walk 2 Our GM, Angus Barclay, presented the cheque to the Chairman of Produce Green Foundation, Simon Chau 2 The walk took place on 4th December. The day was cool but bright and sunny. The route located on the north of Lantau Island is a coastal path connecting Sha Lo Wan and Tung Chung. The path is part of the Tung O Ancient Trail and remains a popular route for visitors today. More than 140 persons participated in the walk and raised more than HK$34,000 for the Produce Green Foundation. A photography competition was held to spur participants to share the beauty of nature with others, advocating the importance of conservation of nature. CPCS Offered Kind Hospitality... Charity Airport Tour CPCS sponsored food and gave support to a charity airport tour on 21st July. Led by Jardine Ambassadors, 13 students with outstanding performance in the Health in Mind Programme were awarded with an incentive tour to visit two Jardine business units, the Excelsior Hotel and Jardine Airport Services. They shared the special memories when touring a British Airways aircraft. "Mindset Programme", from which the students received awards, is intended to make a difference in the area of mental health and change peoples' attitudes towards mental health issues. The tour, kicked off at the Chek Lap Kok International Airport, is to recognize the contribution of all students and the efforts of the teachers in promoting the awareness of mental health over the past year. With the sponsorship of light snacks and beverages by CPCS, the group enjoyed immensely! Cheers! Jardine Ambassadors, students from "Mindset Programme", British Airways representative, and our Airline Account Manager, Gary Cheung pictured for memory! 10

Cheung Chin Choi Our New Chinese Cuisine Consultant A well-travelled food expert, Chef Cheung Chin Choi was born in Hong Kong and yet is highly international. From 1984 to 1996, he worked for the Hyatt Group, and looked after the Chinese kitchens of the hotels in Dubai, Jeddah, and Perth. In 1997, Chef Cheung dedicated his effort to the Bali Hyatt where his acclaimed dishes were as well received as before. He became the Chinese Chef in the InterContinental Chengdu in 1998 and was later the Executive Chinese Chef at the InterContinental Phnom Penh in Cambodia. Throughout the journey of his culinary career, he demonstrated his capabilities which were further sharpened on the way. His expertise was recognized by the Vocational Training Council in Hong Kong, and he joined it in 2002 as the Chief Instructor. Before joining CPCS, Chef Cheung was the winner of the silver medal in the 5th World Championship of Chinese Cuisine in Guangzhou, China. With Chef Cheung as part of our team, we will continue to make every endeavour to maintain and raise the standards of our always top quality products for our customers. Welcome to New Head of Marketing and Customer Services Department Wings... From left: Gary Cheung, Stanley Siu, Johnnie Mak, Wings Mok, Pat Cheung, KK Leung, Jackson Ng Wings Mok has joined the family of CPCS as the Marketing and Customer Services Manager in December. Wings takes the lead to head the department and Airline Account Managers, playing a front-end marketing and customer relations role. Having served the hospitality industry for 8 years, Wings is excited to take up her new and challenging position with CPCS. Leslie Bailey... and Farewell to Marketing and Customer Services Manager Leslie Leslie Bailey, Marketing and Customer Services Manager of CPCS, said goodbye to all of us to take up a new and challenging position. Leslie joined CPCS in 1997 as a chef and rejoined the family in November 2003 as the head of Marketing and Customer Services Department, leading his team in improving the service quality that our customers value so greatly. Leaving with sadness, he wants to say thank you for all the hard work done by his team and to everyone for bringing him unforgettable memories over the years of serving CPCS. He would also like to take the opportunity to say that he is very proud to have worked for CPCS and he will never forget his time with a tiptop company like CPCS. 11

An Applause to Vietnam Air Caterers Vietnam's surge in foreigner investment and tourism seems to benefit the total meal units uplifted by Vietnam Air Caterers. The total meal units have reached 10,000 per day on average at its 20,000-meal unit facility in Ho Chi Minh City. In the year of 2004, the company has gained 3 other catering accounts from Garuda Indonesia, Air France and the most recent newcomer United Airlines which started its first daily flight on 11th December 2004. This brings the total number of regular Airline Partners uplifting from Vietnam Air Caterers to 16. The company has strived to gain accreditation of OHSAS 18000. External audit was conducted in December 2004. Other Systems in place are: ISO 9001:2000 and HACCP as well as 5S. At the same time the company will commence its project of upgrading its warewash section. A new ware-wash line will definitely be able to cope with the increasing business in the year of 2005. News Update for Cebu Pacific Catering Services Cebu Pacific Catering Services had just finished a two-day workshop on HACCP on 18th -19th November 2004. Facilitated by Mr. Ruben Bueno Jr. of MacroAsia Eurest, Manila, the 13 team members were oriented and trained, and had the initiative formally launched in preparation for the HACCP conditions to be implemented and subsequent Certification targeted in the middle of the year 2005. The year-end Board of Directors Meeting took place in the CPCS Conference Room on 24th November 2004 when we were graced by the presence of Ms. Quince Chong, Cathay Pacific Director Service Delivery and Chairman of CPCS Hong Kong. She arrived together with Mr. Alex Chau, CEO of CPCS, Mr. Mark Sutch, Country Manager for Cathay Pacific Philippines, and Ms. Anna Cheung, Station Manager for Cathay Pacific Cebu. The Shareholders meeting was also held with the attendance of Mr. Reynaldo Munsayac and Mr. Amador Sendin, both from MacroAsia Corporation, Atty. Patrick Lucido, Corporate Secretary, Mr. Tony Garcia, General Manager and of course Mr. Manuel H. Osmeña, Chairman of the Board. They were well catered for by Mr. Benjamin S. Jabat, Cebu Pacific Catering's Executive Chef. Last but not least, our hands are full in preparation to focus on improving our safety. This covers Food Safety and Ramp Safety. Our first ever Family Day celebration was also kicked off on 18th December 2004 along with the annual Christmas Party of the whole facility. We look forward to the improvements we are undergoing and expect to move forward with a much faster speed! Management Movements 12 Appointments Cathay Pacific Catering Services, Hong Kong Mr. Cheung Chin Choi Appointed as Chinese Cuisine Consultant (Apr 05) Ms. Wings Mok Appointed as Marketing & Customer Services Manager (Dec 04) Mr. Kenny Lau Promoted to Quality Assurance Manager (Nov 04)