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Angelica Provides Update on Union Negotiations

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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:

CONTACT:
COLLEEN HEGARTY
DIRECTOR OF INVESTOR RELATIONS
ANGELICA CORPORATION
TELE: (314) 854-3800

 

JOHN MILLS
INTEGRATED CORPORATE RELATIONS, INC.
(310) 395-2215

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