Creative Host Services, Inc. (Nasdaq: CHST) today announced its financial performance for the three months ended June 30, 2000. Revenues for second quarter 2000 were $5,191,780, an increase of 16 percent over second quarter 1999 revenues of $4,476,706. For the quarter, Creative Host realized profitability of $146,867 and gained $0.02 per share, compared to breaking even in the second quarter 1999. Second quarter 2000 EBITDA continued its strong growth to $557,432 over second quarter 1999 EBITDA of $376,146, resulting in a 48 percent increase.

To date, Creative Host’s revenues total $9,678,562, an increase of 11.8 percent over the six-month earnings of 1999, which reached $8,654,802. The Company’s gross profit for the six months ended June 30 are reported at $6,626,519, up from $5,995,005 in 1999.

The Company’s cash position continues to significantly increase as it positions itself for growth through acquisitions. Creative Host is actively pursuing suitable candidates and has recently announced the signing of a letter of intent with GladCo Enterprises, a Pittsburgh-based $10.5 million airport concession company.

Sayed Ali, President and Chief Executive Officer of Creative Host Services, Inc., commented, “We are proud of our accomplishment of gaining profitability this quarter and are expecting this trend to continue. I feel these profitable results highlight the hard work management has maintained as we continue on our course of growth through acquisitions and obtaining additional airport restaurant locations.”

About Creative Host Services, Inc.

Creative Host Services, Inc. is engaged in the business of acquiring, managing and operating airport concessions such as food and beverage, news and gift and other concessions throughout the United States. In addition, the Company also provides in-flight catering to certain national airlines at nine of its airport locations. The Company currently has 43 operating facilities at 21 airports. Forty-two are company owned and one is franchised. Six of the Company’s 42 operating concessions are food courts, each consisting of several food and beverage restaurants that are located within each court. To simplify accounting, the Company counts its various food courts as only one concession. Creative Host Services, Inc. enjoys co-branding relationships with several national and regional companies such as Carl’s Jr., Taco Bell, Little Caesars Pizza, TCBY Yogurt, Mrs. Field’s Cookies, Nathan’s Famous Hotdogs and Pretzelmaker.

Statements in this news release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as “expect,”‘ “intends,” “believes,” “plans,” “anticipates” and “likely” also identify forward-looking statements. All forward-looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to history of operating losses, anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption of vital infrastructure and intellectual property rights. All forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.

CREATIVE HOST SERVICES, INC.
STATEMENTS OF INCOME AND OPERATIONS

Three Months Ended Six Months Ended
June 30 June 30

1999 2000 1999 2000

Revenues:
Concessions $ 4,428,938 $ 5,144,699 $ 8,507,977 $ 9,590,305
Food Preparation
Center Sales 30,890 35,148 115,093 63,568
Franchise Royalties 16,878 11,933 31,732 24,689
Total
Revenues $ 4,476,706 $ 5,191,780 $ 8,654,802 $ 9,678,562

Cost of
Goods Sold 1,417,409 1,670,398 2,659,797 3,052,043

Gross Profit $ 3,059,297 $ 3,521,382 $ 5,995,005 $ 6,626,519

Operating Costs and Expenses:
Payroll and
Other Employee
Benefits $ 1,380,119 $ 1,631,367 $ 2,815,455 $ 3,136,647
Occupancy 724,837 767,577 1,380,018 1,449,570
Selling Expenses 415,809 506,526 763,206 742,418
General,
Administrative 374,765 369,768 809,984 956,303
Total Operating
Costs and
Expenses $ 2,895,530 $ 3,275,238 $ 5,768,663 $ 6,284,938

Income from
Operations $ 163,767 $ 246,144 $ 226,342 $ 341,581

Interest
Expense - Net $ 163,383 $ 96,504 $ 349,043 $ 260,673

Other Income

Net Income (Loss)
Before Income
Taxes $ 384 $ 149,640 $ (122,701) $ 80,908

Provision for
Income Taxes, 0 2,773 0 5,831
All Current
Net Income (Loss) $ 384 $ 146,867 $ (122,701) $ 75,077

Net Income (Loss)
per Share $ 0.00 $ 0.02 $ (0.04) $ 0.01
Basic and Diluted