Message from Jay Scott - H.R. Manager

All,

As part of our looking across the company at all aspects of how we can operate more effectively, we have done an extensive review of our food service operations. We undertook a competitive review by looking at a number of food service providers. We requested submissions that would cover menu selection, food quality, customer service, cost and efficiency of operations. In regards to costs, we pay our current food service operator a subsidy of over $500,000 per year to operate the Gallery, Spring Street Café and the OC and Olympic food facilities. Based on this competitive review that included visitations by a number of employees to see their current operations, taste their food, and see their commitment to quality and service, we have selected CulinArt as our new food service operator.

We were impressed by CulinArt’s management team led by chefs that focus on high quality food products and serving it at the lowest possible prices while engaging each guest with their superior service. They are the area’s largest privately owned regional contract dining service company with over 150 accounts. CulinArt will introduce signature café concepts such as Chef’s Choice (hot entrees and sides), Oregionalities Cuisine exhibition station (items such as Japanese Noodle Bar and Sizzlin’Steak Fajitas), New York Deli (slice-to-order), City Grill (grilled-to-order menu options), Souper Soups, chef-prepared fresh sushi, gourmet brick oven pizza using daily fresh-baked dough and more.

It is clear that CulinArt’s objective is to offer an innovative, contemporary on-site dining service program (including café, catering and vending services) for the Spring Street, Orange County and Olympic facilities. CulinArt is thrilled to be able to offer their services to the Los Angeles Times and we are confident they will do an outstanding job for us.

In connection with this change of vendor, we have made the difficult decision to close down the Gallery. We looked at a number of options with our current and potential vendors but given the modest usage, we would still run at a loss of over $175,000 annually. In this current environment with tough choices, we determined that we shouldn’t continue operating the Gallery.

Timing:

The Gallery will close on Friday, May 25, 2007 but will continue supplying catering through Thursday, May 31, 2007.

The Spring Street Café, Olympic and Orange County dining facilities will transition to CulinArt effective June 4, 2007.

Please refer to the attached Q&A for additional details.

Regards,

Jay W. Scott
Sr. Human Resources Manager
Los Angeles Times