Settlement Will Not Impact Third Quarter Earnings

MINNEAPOLIS--(BUSINESS WIRE)-- G&K Services, Inc. (NASDAQ: GKSR), a market leader in branded identity apparel programs and facility services, today announced that it has reached a settlement with Connecticut’s Department of Environmental Protection (DEP) regarding allegations involving its Waterbury, Connecticut industrial laundry operations. This settlement relates to a previously disclosed matter dating back to 2008 regarding alleged failure by the company to properly permit and operate installed air pollution control equipment. The amount of the financial settlement is within previously established reserves and will not impact the company’s third quarter earnings.

The company cooperated fully with the DEP to resolve this matter. Nonetheless, G&K disagrees with many of the substantive characterizations and other allegations made related to this settlement. The agreed-upon settlement amount is based, in large part, on hypothetical worst case scenarios of potential emissions, rather than any actual emissions from the facility. As such, there is no actual evidence of harm involving G&K’s Waterbury operations.

G&K continues its operations, serving customers in Waterbury and the surrounding communities, consistent with its commitment to the health and well-being of its employees, customers and the communities it serves.

Safe Harbor for Forward-Looking Statements

Statements made in this press release concerning the company’s intentions, expectations or predictions about future results or events are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements reflect the company’s current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which could be material and adverse. You are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information concerning potential factors that could affect future financial results is included in the company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2009.

About G&K Services, Inc.

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. Headquartered in Minneapolis, Minnesota, G&K Services employs nearly 8,000 employees serving approximately 170,000 customers from over 160 facilities in North America and Europe. G&K Services is a publicly held company traded over the NASDAQ Global Select Market under the symbol GKSR and is a component of the Standard & Poor’s SmallCap 600 Index. For more information on G&K Services, visit the company’s website at www.gkservices.com.

G&K Services, Inc.
Jeffrey L. Wright, 952-912-5500
Executive Vice President and Chief Financial Officer
or
Shayn R. Carlson, 952-912-5500
Director of Investor Relations

Source: G&K Services, Inc.