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FOR IMMEDIATE RELEASE
ST. LOUIS , MISSOURI
May 13, 2005
Angelica Provides Update on Union Negotiations
St. Louis, Missouri (May 13, 2005) - Angelica Corporation (NYSE: AGL), a
leading provider of healthcare linen management services, and UNITE HERE, a
union representing employees in approximately two thirds of Angelica's plants,
provided employees an update on negotiations between the two parties today. For
reference, Angelica has been subject to a corporate campaign conducted against
it by UNITE HERE since January, 2004. Given the number of questions being asked
by shareholders about this issue, the Company has decided to share the employee
communication publicly. The employee notice is attached.
Commenting on the notice, Steve O'Hara, Angelica's President and CEO, stated,
“Rarely do we provide updates on the progress of any negotiation, whether the
negotiation is to buy another business or settle a labor dispute. The reason for
this position is because there are never any guarantees that a negotiation will
conclude successfully. Nevertheless, because of the impact of these negotiations
on so many of our employees, we agreed with UNITE HERE that an update to our
employees was appropriate. We remain hopeful that we can resolve our outstanding
differences with UNITE HERE.”
Angelica Corporation, traded on the New York Stock Exchange under the symbol
AGL, is a leading provider of textile rental and linen management services to
the U.S. healthcare market. More information about Angelica is available on its
website, www.angelica.com
Forward-Looking Statements
Any forward-looking statements made in this document reflect the
Company's current views with respect to future events and financial performance
and are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks and
uncertainties that may cause actual results to differ materially from those set
forth in these statements. These potential risks and uncertainties include, but
are not limited to, competitive and general economic conditions, the ability to
retain current customers and to add new customers in competitive market
environments, competitive pricing in the marketplace, delays in the shipment of
orders, ability to mitigate work disruptions at our plants arising from a
union's corporate campaign against the Company, availability of labor at
appropriate rates, availability and cost of energy and water supplies, the cost
of workers' compensation and healthcare benefits, the ability to attract and
retain key personnel, the ability of the Company to recover its seller note and
avoid future lease obligations as part of its sale of Life Uniform, the ability
of the Company to accomplish its strategy of redirecting its resources to its
healthcare linen management business in a timely and financially advantageous
manner, unusual or unexpected cash needs for operations or capital transactions,
the effectiveness of certain expense reduction initiatives, the ability to
obtain financing in required amounts and at appropriate rates and terms, the
ability to identify, negotiate, fund, consummate and integrate acquisitions, and
other factors which may be identified in the Company's filings with the
Securities and Exchange Commission.
For additional information contact:
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CONTACT:
COLLEEN HEGARTY
DIRECTOR OF INVESTOR RELATIONS
ANGELICA
CORPORATION
TELE: (314) 854-3800
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JOHN MILLS
INTEGRATED CORPORATE RELATIONS, INC.
(310) 395-2215
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