Sodexho Reports Results for the First Half 2005-2006

-- Organic growth: + 5.5 %

-- Continuing improvement in operating profit drives strong increase in Group net income

-- Objectives for Fiscal 2006 confirmed

Sodexho Alliance's Board of Directors, chaired by Pierre Bellon,met on May 9, 2006, to close the Group's financial statements for thefirst half of fiscal 2006, which ended on February 28, 2006.

Financial Highlights

Sodexho Alliance has applied International Financial ReportingStandards (IFRS) since September 1, 2005. Comparative amounts havebeen presented also using the new accounting standards.
(in millions of euro) First First Change Currency Total
Half Half (excluding Impact Change
Fiscal Fiscal currency (b)
2005 2006 impact)

Revenues 5,902 6,546 + 5.5% + 5.4% + 10.9%
Operating profit
excluding settlement
of U.S. litigation (a) 270 315 + 11.4% + 5.3% + 16.6%
Operating profit 210 315 + 43.3% + 6.7% + 50.0%
Financial expense (54) (52) -8.1% + 2.8% - 5.3%
Income tax (57) (102) + 70.9% + 8.4% + 79.3%
Group net income
excluding resolution
of U.S. litigation (a) 134 160 +11.6% + 8.4% + 20.0%
Group net income 94 160 + 62.5% + 8.4% + 70.9%

(a) Operating profit and net income for the first half Fiscal 2005
include a provision for 60 million euro (40 million euro after
tax) corresponding to the estimated charge at the time of the
settlement of this litigation.

(b) For the first time in three years, the translation of the U.S.
Dollar into euro resulted in a favorable exchange rate impact on
the consolidated income statement.

Organic revenue growth of 5.5 %

Organic revenue growth for the first half of fiscal 2006 was solidin all activities, particularly in the Healthcare and Seniors segment(+8.2%) in Food and Management Services and also in Service Vouchers &Cards (+16.8%).

Revenues for the first half of fiscal 2006 were reported on April5, 2006, and the related press release is available on the Group'swebsite : www.sodexho.com

Operating profit: +11.4 % excluding currency impact

In Service Vouchers & Cards, operating profit was 53 million euro,a particularly strong improvement (+43.5%) (1) resulting from verypositive business development, notably in Latin America.
Food and Management Services (1):

-- In North America, operating profit was 152 million euro, an
increase of 7.8%. This results notably from improved
performance both from volume growth and on-site productivity
in the Healthcare and Seniors and Education segments.

-- The modest improvement in operating profit (+1.5%) in
Continental Europe to 103 million euro resulted primarily
from:

-- the impact of start-up expenses of certain significant new
contracts signed last year in France and,

-- continuing client headcount decreases, most particularly
in Northern Europe.

-- In the United Kingdom and Ireland, operating profit was 17
million euro and in line with the Group's recovery strategy.
This represents a significant improvement over the comparable
period in Fiscal 2005.

-- In the Rest of the World (Latin America, Asia, Oceania and
Remote Sites), operating profit was 11 million euro. This
performance reflects both the scheduled completion of certain
infrastructure development contracts in the Remote Sites
activity in Australia and slightly decreased activity levels
in the Gulf of Mexico following the hurricanes at the
beginning of the fiscal year.

(1) Comparisons with the prior year are at constant currency and
excluding settlement of the U.S. litigation.

Group net income

Group net income rose by 70.9% or 62.5% at constant currencyduring the first half of Fiscal 2006. First half Fiscal 2005 netincome included a 40 million euro (net of taxes) charge for resolutionof the U.S. litigation. After adjusting the prior comparable base forthis effect, Group net income increased 20%, or 11.6 % at constantcurrency.

Financial situation

At February 28, 2006, net debt amounted to 683 million euro,representing 31% of Group shareholders' equity.

Fiscal 2005 - 2006 outlook

On May 9, 2006, the Sodexho Alliance Board of Directors confirmed,for Fiscal 2006, the high end of the objectives announced in November2005:

-- Organic revenue growth of around 5%;

-- Increase in operating profit of about 6%, excluding currency impact.

Ambition 2015

Developed by 350 managers from around the world to unite theGroup's 324,000 employees around a clear vision for the future,Sodexho's "Ambition 2015" is to be the premier global outsourcingexpert in quality of life services.

Commenting on this strategic vision, Sodexho CEO Michel Landelsaid, "Mobilized around this collective goal, we are determined toimprove our operational efficiency and competitiveness. Given theenormous growth potential within Sodexho's markets, we have anambition to accelerate our organic revenue growth, in particularthrough the development and extension of our proven FacilitiesManagement service offerings. "

-- Analyst and journalist briefings

SODEXHO ALLIANCE will hold a briefing for analysts today at 8:30am (Paris time) and for journalists at 11:00 am (Paris time) at EspaceEtoile-St-Honore, 23, rue Balzac, 75008 Paris.

The analyst meeting will be webcast and will begin at 8:30 am(Paris time). The presentation will be available on the Group's website by clicking on the link www.sodexho.com under the "latest news"section, beginning at 7:30 a.m. The audio proceedings also can befollowed by dialing +33 (0)1 72 26 01 65. An audio recording of theanalysts briefing will be available for one week by dialing + 33 (0)172 28 01 49, access code 179927#.
-- Financial communications calendar

-- First-nine months 2005 - 2006 fiscal revenues :
Wednesday, July 5, 2006, conference call.

-- Full year 2005 - 2006 fiscal revenues :
Wednesday, October 4, 2006, conference call.

-- Full year 2005 - 2006 fiscal results:
The press release for full year fiscal 2005 - 2006 results
will be published on November 16, 2006. Presentations for
analysts and journalists will be held the same day, at
Etoile-St-Honore, 23, rue Balzac, 75008 Paris.

The above dates are provided for information only and are subject
to change.

About SODEXHO ALLIANCE

SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the leadingglobal provider of Food and Management services, with more than324,000 employees on 26,700 sites in 76 countries. For Fiscal 2005,which closed August 31, 2005, SODEXHO ALLIANCE had sales of 11.7billion euro. Listed on Euronext Paris and on the New York StockExchange, the Group's current market capitalization is 6.2 billioneuro.

This press release contains 'forward-looking statements' withinthe meaning of the United States Private Securities Litigation ReformAct of 1995. These include, but are not limited to, statementsregarding anticipated future events and financial performance withrespect to our operations. Forward-looking statements can beidentified by the fact that they do not relate strictly to historicalor current facts. They often include words like 'believe,' 'expect,''anticipate,' 'estimated' , 'project ' , 'plan' 'pro forma,' and'intend' or future or conditional verbs such as 'will,' 'would,' or'may.' Factors that could cause actual results to differ materiallyfrom expected results include, but are not limited to, those set forthin our Registration Statement on Form 20-F, as filed with theSecurities and Exchange Commission (SEC), the competitive environmentin which we operate, changes in general economic conditions andchanges in the French, American and/or global financial and/or capitalmarkets. Forward-looking statements represent management's views as ofthe date they are made, and we assume no obligation to update anyforward-looking statements for actual events occurring after thatdate. You are cautioned not to place undue reliance on ourforward-looking statements.

Annex 1 : New contracts

Food & Management Services

-- North America

. Business & Industry

Amgen, multiple sites, (2,200 employees, food service, vending);Atlanta Zoo (2,200 employees, food service); Schlumberger Ltd.,Sugarland and Austin, Texas, (3,000 employees, food service, vending);Sears Towers (12,000 employees, food service); Dow Chemical (1,800employees, food service); Unilever (900 employees, mailroom added tofood service)

. Healthcare

Hollywood Presbyterian Medical Center, Los Angeles, CA, (422 beds,environmental services, engineering, guest services, patienttransport, telecommunications); Henry Medical Center, Stockbridge, GA,(200 beds, food service, environmental services); Hellenic Home,Toronto, Canada (200 people, Long-Term Care, food service); PBIRegional Medical Center, Passaic, NJ (223 beds, food service,environmental services); Northwest Texas Healthcare System), Amarillo,TX (393 beds, environmental services); East Ridge Retirement Village,Miami, FL, (366 beds, food service) ; Lutheran Care, Clinton, NY (280beds, food service) ; George Washington University Hospital,Washington, DC (231 beds, environmental services): UPMC Passavant,Pittsburgh, PA, (285 beds, patient transportation); Windsor RegionalHospital. Canada (647 beds, food service) HHS Henderson GeneralHospital. Canada (environmental services added to existing contract)

. Education

Valdosta State University, GA (10,500 students, food service);Southeastern Oklahoma State University, OK (3,800 students, foodservice); Middletown Monroe City School District, OH (7,600 students,food service)

-- Continental Europe

. Business & Industry

BP, Cergy, France (Facilities Management); Bank Zirat, Turkey,(food service); Huntsman, Netherlands, (650 people, food service);Deutsche Telekom AG Tagungshotel Stuttgart, Germany, (600 people, foodservice); Telekom Center Munchen, Germany, (2,500 people, foodservice). Groupama, France, (food service); Bristol Myers Squibb,France (Facilities Management) ; RIE Les Mercuriales, France (foodservice) ; Finance Ministry, Netherlands, (1,040 employees, foodservice) ; US Steel Kosice, Slovakia, (30,000 employees, food service); Petkim, Turkey (food service); Dassault Falcon Service, le Bourget,(food service, 125 employees)

. Healthcare

La clinique Saint Charles, La Roche sur Yon, France; Lapolyclinique du Maine, Laval, France ; Mutualite Francaise Loire -Clinique Chirurgicale, France, (220 people, food service); Hospital deCruces, Spain, (940 people, food service); Hopital des Diaconesses,Paris, France ; management contract with Groupe Suren, leader forseniors residences in France ; GGNet, Netherlands, (375 beds, foodservice); Clinique de l'Europe, Rouen, France (330 beds)

. Education

Borsod-Abauj-Zemplen County, Hungary, (5,800 students, foodservice); Vantaa Keskinen Koulut, Finland, (2,700 students, foodservice) ; Politecnico di Torino, Italy, (20,000 students, foodservice) ; Primary schools of Perpignan, France, (food service) ;Direction des Familles et de la Petite Enfance, France, (food service); Ecoles primaire de Perpignan, France, (food service)

-- United Kingdom & Ireland

. Business & Industry

Catterick Garrison, multiple sites, (7,600 people, facilitiesmanagement); North of England (Defence), (7 sites, 5,000 people,facilities management); BAA, Gatwick (food service, Emirates 1st andBusiness Class Lounge, 36,000 customers per day); GSK HPLC, Ware (5sites, Laboratory Instrumentation, 10,000 people)

. Healthcare

Leicester, Leicestershire & Rutland Facilities Consortium,Leicester (14 sites, 760 beds, food service); Papworth Hospital,Papworth Everard, (220 beds Cleaning/Domestic Services)

. Education

The Abbey College, Malvern (food service, 100 students)

-- Rest of world

. Business & Industry

Cargill Group, Argentina/Brazil, (6 sites, food service); ShanghaiDiesel Engine Co., Ltd., China, (4,500 people, food service); Ministryof Defense, Chile (food service); Mobil, Peru, (Facilities Management); Toyota, Cumana, Venezuela (industrial cleaning, post control, wastemanagement, gardening); Shanghai Huizhong Automotive Manufactory(5,000 people, food service); United Nations, Asian Head Quarters,Bangkok, Thailand, (food service) (1200 people); TGI, Tilleke andGibbons, Bangkok, Thailand (Facilities Management); Mercedes Benz,Cycle & Carriage/Singapore, (food service (150 people) Nortel R&Dcenter Beijing/China (food service - 1700 employees), Microsoft,Colombia, Peru, Venezuela, Ecuador (IFM regional contract)

. Healthcare

Hospital Naval, Talcahuano y Vina, Chile, (2 sites, 520 beds, foodservice and retail); Santa Barbara Hospital, Sao Paulo, Brazil ; (250beds ; food service) ; Shanghai NNumber1 Hospital Songjiang Branch(600 beds, food service); Hospital Da Bahia, Bahia, Brazil (FacilitiesManagement)

. Education

University Andres Bello, Santiago, Chile (cleaning services);Manipal Medical College/Malaysia - (food service, 600 students)

. Remote sites

Offshore Block 17/Total and subcontractors, Angola (800 people);KATCO/COGEMA, Kazakhastan (200 people); Schlumberger camps, Alaska,USA (150 people); Goro Nickel, New Caledonia, (4,000 people); CentralHigueras, Chile, (1,600 people, food service and lodging service);Exxon Mobil, Jose, Venezuela (food service); Exxon Mobil, Australia(cleaning, administration services, 320 people)

Service Vouchers and Cards

-- Traditional service offerings:

Brazil : Prefecture de Colatina (5,000 beneficiaries, Food Pass),Ford Motor (4,000 beneficiaires, Gift Pass), Siemens Servicos Tecnicos(1,300 beneficiaires, Restaurant Pass Restaurant), Telsul Servicos(1,600 beneficiaires, Transport Pass), Mexico : Casa Saba (5,200beneficiaires, Food Pass), Venezuela : Cadela -Electricity production(1,508 beneficiaries, GiftPass), India : Sasken (2,700 beneficiaires,Restaurant Pass), Hindustan Petroleum Corporation (9,300beneficiaires, Gift Pass), Reliance Energy (1,200 beneficiaires, FoodPass), China : Swatch Group (200 beneficiaires, Restaurant Pass), DHL(100 beneficiaries RestaurantPass) ; Slovakia : Accenture (1,000beneficiaires, Restaurant Pass and Relax Pass), Hungary: HerendPorcelain Manufactory (800 beneficiaires, Restaurant Pass), Germany:Fujitsu (200 beneficiaires, Restaurant Pass), Poland : Multibank-BREBank (3,780 beneficiaries, GiftPass) and PKP Polskie Linie Kolejowe -national railways (1,700 beneficiaries, GiftPass) Romania :Telecomunicatii CFR (1300 beneficiaires, Restaurant Pass) ; Belgium :Alliance Nationale Des Mutualites Chretiennes (5,500 beneficiaires,Restaurant Pass), New Holland Tractor (2,300 beneficiaires, RestaurantPass), Turkey : IS Bank (2,250 beneficiaires, Restaurant Pass)

-- New services :

Argentina : Province of Catamarca en Assistance : ProgramPro-Family (15,000 families), Philippines : Hewlett Packard (20,000beneficiaires, Gift Pass), Philippines Ports Authority (2,000beneficiaires, Gift Pass), Pfizer Inc (1,400 beneficiaires, GiftPass), Czech Republic : GE Money Bank (3,000 beneficiaires,FlexiPass), Germany : Potsdam Job Center, Job Pass, Belgium : VRT(Vlaamse Radio- Televisieomroep) (2,300 beneficiaires, Internet Pass); UK : EADS (120 beneficaires, ChildcarePass); Czech Republic: CSOBBank, Johnson & Johnson S.R.O. and Pfizer (FlexiPass) ; Slovakia: ING(200 beneficiaries, VacationPass)

Annex 2
SODEXHO GROUP

CONSOLIDATED INCOME STATEMENT (in millions of euro)

---------- --------- ------ ---------- ---------
6 months 6 months
2005-2006 %Revenues change 2004-2005 %Revenues
---------- --------- ------ ---------- ---------

Revenue 6 546 100% 10.9% 5 902 100%
---------- --------- ---------- ---------
Cost of sales (5 610) -85.7% (5 068) -85.9%
Gross profit 936 14.3% 12.2% 834 14.1%

Sales department
costs (75) -1.2% (66) -1.1%
General and
administrative
costs (547) -8.4% (499) -8.5%
Other operating
income and
charges 1 0.0% (59) -1.0%
Operating profit
before financing
costs 315 4.8% 50.0% 210 3.6%
---------- ----------

Net financing costs (52) -0.8% -5.3% (54) -0.9%
Share of profit of
associates 3 (2)
Profit before tax 266 4.1% 72.8% 154 2.6%
---------- ----------
Income tax expense (102) -1.6% (57) -1.0%
Net result from
discontinued
operations - -
Profit for the
period 164 2.5% 97 1.6%

Minority interests 4 0.1% 3 0.1%
Group profit for the
period 160 2.4% 70.9% 94 1.6%
---------- ----------

Earnings per share
(in euro) 1.01 70.9% 0.59
Diluted earnings per
share (in euro) 1.01 70.9% 0.59
CONSOLIDATED BALANCE SHEET in millions of euro

---------------- --------
February August February
28, 31, 28,
2 006 2 005 2 005
-------------------------

Non-current assets
Property, plant and equipment 424 406 401
Goodwill 3 803 3 711 3 506
Other intangible assets 244 225 205
Associates 29 26 23
Financial assets 74 74 80
Other non-current assets 22 18 17
Deferred tax assets 244 225 199
Total non-current assets 4 840 4 685 4 431

Current assets
Financial assets 6 7 6
Derivative financial instruments 37 40 49
Inventories 180 176 177
Income tax 32 19 28
Trade receivable 2 173 1 750 1 866
Restricted cash and financial assets related
to the Service Vouchers and Cards activity 375 326 296

Cash and cash equivalents 822 949 852
Total current assets 3 625 3 267 3 274

------------------------------------------------------ ------ --------
Total assets 8 465 7 952 7 705
------------------------------------------------------ ------ --------

-------- ------ --------
February August February
28, 31, 28,
2 006 2 005 2 005
-------- ------ --------
Shareholders' equity
Capital 636 636 636
Share premium 1 186 1 186 1 186
Undistributed net income 667 708 715
Consolidated reserves -293 -467 -761
Total group shareholders' equity 2 196 2 063 1 776
Minority interests 17 18 16
Total shareholders' equity 2 213 2 081 1 792

Non-current liabilities
Borrowings 1 727 1 891 1 684
Employee benefits 314 308 314
Other liabilities 96 82 64
Provisions 60 53 52
Deferred tax liabilities 36 50 48
Total non-current liabilities 2 233 2 384 2 162

Current liabilities
Bank overdraft 81 21 48
Borrowings 107 85 408
Derivative financial instruments 2 2 4
Income tax 129 84 103
Provisions 90 97 87
Trade and other payable 2 465 2 197 2 143
Vouchers payable 1 145 1 001 958
Total current liabilities 4 019 3 487 3 751

------------------------------------------------------ ------ --------
Total equity and liabilities 8 465 7 952 7 705
------------------------------------------------------ ------ --------
CASH FLOW
(in million of euros) 6 months 6 months
2005-2006 2004-2005
---------------------
Operating activities

Operating profit before financing costs 315 210

Non cash items
Depreciations 96 92
Provisions (5) 61
Losses (gains) on disposals and other, net of
tax 2 5

Dividends received from associates 1 0

Change in working capital from operating
activities (191) (39)
change in inventories (2) (22)
change in client and other accounts receivable (393) (290)
change in suppliers and other liabilities 133 120
change in Service Vouchers and Cards to be
reimbursed 119 111
change in financial assets related to
the Service Vouchers and Cards activity (48) 42

Interest paid (23) (20)
Interest received 9 0
Income tax paid (97) (54)
Net cash provided by operating activities 107 255
---------------------

Investing activities
Tangible and intangible fixed assets
investments (108) (80)
Fixed assets disposals 3 13
Change in financial investments 1 (8)
Acquisitions of consolidated subsidiaries (27) (1)
Disposals of consolidated subsidiaries 0 (3)
Net cash used in investing activities (131) (79)
---------------------

Financing activities
Dividends paid to parent company shareholders 0 0
Dividends paid to minority shareholders of
consolidated companies (5) (3)
Change in shareholders' equity 18 2
Proceeds from borrowings 3 73
Repayment of borrowings (198) (196)
Net cash provided by (used in) financing
activities (182) (124)
---------------------
Increase in net cash and cash equivalents (206) 52
---------------------
Net effect of exchange rates on cash 19 (7)
Cash and cash equivalents, as of beginning of
period 928 759
Cash and cash equivalents, as of end
of period 741 804
---------------------
ANALYSIS OF OPERATING ACTIVITIES (in millions of euro)


Revenues 6 months 6 months
2005/2006 change 2004/2005
IFRS IFRS
---------- ------ ----------
. By operating
activity
Food and Management
Services
North America 2 919 12.9% 2 586
Continental
Europe 2 111 6.4% 1 984
United Kingdom
and Ireland 663 3.6% 640
Rest of the
World 678 22.2% 555
Service Vouchers
and Cards 178 27.2% 140
Elimination of
intragroup
revenues -3 -3
6 546 10.9% 5 902
---------- ------ ----------

Operating profit 6 months 6 months 6 months 6 months
2005/2006 change 2004/2005 2005/2006 2004/2005
IFRS IFRS IFRS IFRS
---------- ------ ----------
. By operating margin margin
activity
---------- ----------
Food and Management
Services
North America 152 118.5% 69 5.2% 2.7%
North America
excluding US
litigation 129 5.0%
Continental
Europe 103 1.3% 102 4.9% 5.1%
United Kingdom
and Ireland 17 55.9% 11 2.6% 1.7%
Rest of the
World 11 -6.0% 12 1.6% 2.1%
Service Vouchers
and Cards 53 54.9% 34 29.8% 24.4%
Corporate expenses -21 15.8% -18
GROUP 315 50.0% 210 4.8% 3.6%
---------- ------ ---------- ---------- ----------
GROUP excluding US
litigation 315 16.6% 270 4.8% 4.6%
---------- ------ ---------- ---------- ----------