HMSHost Corporation and Kilmer Van Nostrand Co. Limited Ink 50-Year Agreement to Build 23 World-Class Service Centers on Major Canadian Highways

BETHESDA, Md.–(BUSINESS WIRE)–Host Kilmer Service Centers (HKSC), the partnership that has been selected to be the new developer and operator for Ontario’s 23 travel and service centers along Canada’s Highways 400 and 401, today promised Ontario’s travelers a line-up of modern LEED^® Silver certified roadside centers that will change the driving experience in the province. More than 500,000 people travel these routes daily and they are among the busiest highways in North America.

“It has been a privilege to partner with Kilmer Van Nostrand on one of the largest motorway agreements in the industry”

The 50-year agreement with the Province of Ontario brings together Maryland-based HMSHost Corporation and Ontario-based Kilmer Van Nostrand Co. Limited. With operations in 14 countries, HMSHost is a world leader in creating award-winning dining and shopping venues for travelers. Kilmer Van Nostrand is a family-owned company with diversified interests in private equity, infrastructure, brownfield development and the sports and entertainment business in Canada.

Once completed in 2013, the network of centers is expected to generate sales revenue to HKSC of approximately CAD $100 million annually or CAD $9 billion over the 50-year term of the agreement. The infrastructure cost of redevelopment—design and construction of the initial 20 service centers—is approximately CAD $300 million. As part of the redevelopment program, HKSC’s responsibilities include financing a portion of the costs during the construction phase. The final three centers will be redeveloped after 2018.

“It has been a privilege to partner with Kilmer Van Nostrand on one of the largest motorway agreements in the industry,” said Elie W. Maalouf, President and CEO, HMSHost Corporation. “Our two companies, along with Ontario’s Ministry of Transportation, are committed to a 50-year partnership that will deliver a new standard of service and quality for travelers.”

“Kilmer takes great pride in having been a part of developing Ontario’s infrastructure for three generations and we are so pleased to be working with the world leader in highway concession operations to bring Ontario motorists a superb travel experience,” said Larry Tanenbaum, Chairman and CEO, Kilmer Van Nostrand Co. Limited.

To deliver on its promise, HKSC announced the line-up of well-recognized Ontario-based restaurant brands in the current plan that will be found throughout the network of centers, including: Tim Hortons, Casey’s, East Side Mario’s, Extreme Pita, Pizza Pizza, Teriyaki Experience, Yogen Früz, NY Fries, and the fine food market, Pusateri’s.

The Ontario service centers are expected to feature international food brands as well: Starbucks Coffee, A & W, BURGER KING^®, Brioche Dorée, Cold Stone Creamery, and Quiznos.

The Market is a customized convenience store developed by HMSHost for specialty travel venues such as motorway travel plazas and airport concourses. The Markets along the Ontario service center network will feature an outstanding selection of fresh, hot and cold gourmet “foods to go” as well as newspapers, maps and magazines. Convenience and travel items, including everyday essentials, add to the many offerings and amenities travelers will now find along the highway.

At each new center, a full service fuel station with an adjacent convenience store will be operated by Canadian Tire—an iconic brand and Canada’s largest independent gas retailer—and will feature a full complement of pumps for both motorists and commercial vehicles, making it easy to pull up, fill up and go.

This modern and best-in-class travel center experience will represent HKSC’s commitment to advancing sustainable building practices in North America. All centers will feature water-efficient landscaping and environment-friendly facilities, and be designed and constructed to achieve Leadership in Energy and Environmental Design (LEED^®) Silver certification standards.

On-site Ontario Tourism Information Centers will be found at the stops at Tilbury South and Bainsville, the two centers that are the gateway to the Highway 401 corridor. Through the Tourism Information Centers, efforts will be made to connect local communities to Ontario travelers at either end of the province, providing an excellent opportunity to inform cross-border travelers from Michigan and New York and the Highway 401 travelers from Quebec. Self-serve provincial stations will be located at the other centers. Travelers will be able to find news of local, regional and provincial attractions and events year-round. Images of the local area, as well as other regions of Ontario, will be featured throughout the common space at each center.

Redevelopment of the network of 23 service centers is planned in several phases. The seven centers in Phase 1, where construction began in early Nov. 2009, are scheduled to open with full dining and services in Sept. 2010. In the interest of meeting the needs of summer travelers, these centers will deliver fuel services and the adjoining Canadian Tire convenience store beginning in July 2010. Construction on the subsequent three phases will begin throughout 2010-2012 and openings will follow beginning in 2011 and continue into 2013. For construction updates and information about subsequent phased construction timelines, please visit: http://www.mto.gov.on.ca/english/traveller/service-centres.

Ontario’s EllisDon, Quadrangle Architects and Bruce Mau Design are among the top companies lending their expertise to the HKSC project. In total, up to 2,500 people will be employed by the entire network of service centers upon completion of the redevelopment program.

About Host Kilmer Service Centers

Host Kilmer Service Centers Inc. is an alliance between the world leader in travel dining and shopping and a well-recognized Canadian company with extensive experience in building public infrastructure.

With more than US$2.7 billion in annual sales and 34,000 employees, HMSHost has provided travelers with food, beverage and retail services in travel venues for more than 112 years. The Company operates 86 travel plazas throughout the U.S. and Canada and in 111 airports worldwide, including Toronto’s Pearson International Airport, as well as the 20 busiest airports in North America. HMSHost is a part of Autogrill Group, the world’s leading provider of food & beverage and retail services for people on the move. With sales of €5.7 billion in 2009, the Autogrill Group operates in 43 countries and employs some 70,000 people. It manages over 5,500 stores in more than 1,200 locations worldwide. Visit www.HMSHost.com for more information.

For more than 40 years, Kilmer Van Nostrand has been building Canadian businesses through long-term, stable investments in areas as diverse as construction and building products, sports, cable television and publishing, food processing and environmental rehabilitation. Kilmer Van Nostrand’s better known interests include: Maple Leaf Sports and Entertainment (Toronto Maple Leafs, Toronto Raptors, and Toronto FC) and Insight Sports Ltd, a founding partner of the NHL Network and World Fishing Network.

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