G&K Services, Inc.

G&K Services, Inc.

February 28, 2005 07:30 ET

G&K Services Announces Acquisition in Canada; Acquisition Expands G&K's Canadian Presence


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: G&K SERVICES, INC.

NASDAQ SYMBOL: GKSRA

FEBRUARY 28, 2005 - 07:30 ET

G&K Services Announces Acquisition in Canada;
Acquisition Expands G&K's Canadian Presence

MINNEAPOLIS--(CCNMatthews - Feb 28, 2005) -

G&K Services Canada, Inc., a subsidiary of G&K Services, Inc.
(Nasdaq:GKSRA), today announced the acquisition of Custom Linen Systems,
Ltd., a textile laundry company serving Calgary and Edmonton, Alberta.
The acquisition, which will add approximately $7.0 to $7.5 million
(Canadian dollars) of annual revenue, expands G&K's uniform and textile
rental service presence in western Canada.

"We are pleased to announce this acquisition," said Robert Wood,
president, G&K Services Canada, Inc. "The addition of Custom Linen
Systems gives us an established presence in two top Canadian markets and
further enhances our competitive position across Canada. We welcome
their customers and employees to G&K."

G&K Services Canada, Inc. has been providing branded identity apparel
programs and facility services to customers in Canada since 1990. Today,
G&K is the largest provider of these programs in Canada and employs more
than 1,500 people. G&K was recently named one of the 50 best employers
in Canada.

"We continue to seek strategic acquisitions across North America," said
Richard Marcantonio, G&K's president and chief executive officer. "In
Canada, we have significantly enhanced our competitive and leadership
position through market expansion activities and acquisitions. Over the
past year, we've added several key markets including Vancouver, British
Columbia; Halifax, Nova Scotia; and now Calgary and Edmonton, Alberta.
We also expanded our presence in the provinces of Quebec and Ontario."

Due to a confidentiality agreement with the sellers, the purchase price
cannot be disclosed. No further details were made available.

Safe Harbor for Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the "Act")
provides companies with a "safe harbor" when making forward-looking
statements as a way of encouraging them to furnish their shareholders
with information regarding expected trends in their operating results,
anticipated business developments and other prospective information.
Statements made in this press release concerning our intentions,
expectations or predictions about future results or events are "forward-
looking statements" within the meaning of the Act. These statements
reflect our current expectations or beliefs, and are subject to risks
and uncertainties that could cause actual results or events to vary from
stated expectation, which could be material and adverse. Given that
circumstances may change, and new risks to the business may emerge from
time to time, having the potential to negatively impact our business in
ways we could not anticipate at the time of making a forward-looking
statement, you are cautioned not to place undue reliance on these
statements, and we undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.

Some of the factors that could cause actual results or events to vary
from stated expectations include, but are not limited to, the following:
unforeseen operating risks; the effects of overall economic conditions
and employment; fluctuations in costs of insurance and energy;
acquisition integration costs; the performance of acquired businesses;
preservation of positive labor relationships; competition, including
pricing, within the corporate identity apparel and facility services
industry; and the availability of capital to finance planned growth.
Additional information concerning potential factors that could affect
future financial results is included in our Annual Report on Form 10-K
for the fiscal year ended July 3, 2004.

About G&K Services, Inc.

Headquartered in Minneapolis, Minnesota, G&K Services, Inc. is a market
leader in branded identity apparel programs and facility services in the
United States, and is the largest such provider in Canada. G&K operates
over 130 processing facilities and branch offices, serving more than
160,000 customers.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    G&K Services, Inc., Minneapolis
    Jeffrey L. Wright, Glenn L. Stolt, 952-912-5500
    or
    G&K Services Canada, Inc.
    Robert Wood, 905-677-6161