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— July 26, 2006

3PL Services

General Motors to Buy Out Con-way in Vector SCM Joint Venture
Con-way has received notice from General Motors Corporation of its intent to exercise its call right and enter into negotiations to purchase Vector SCM, LLC, the joint venture formed by Menlo Worldwide, LLC, Con-way's global contract logistics subsidiary, and GM in December 2000 to deliver lead logistics provider services for GM's global supply chain.
The terms of the joint venture give GM the right to exercise a buy-out of Vector, subject to agreement on valuation, terms and conditions.The companies will promptly enter into discussions intended to establish a valuation for the venture and proposed terms of a transaction.
GM notified Con-way that consistent with its turnaround plan and the goal of further integrating global activities in this area, it had made a strategic decision to resume more direct control over its logistics functions.
Vector will provide ongoing services and support to GM during the valuation discussion process, and during a subsequent post-transaction transition. The two companies also will be forming a transition team to manage resource planning and ensure a smooth transfer of services and functions. Contracts where Vector is providing services to non-GM entities will be transitioned to Menlo.
http://www.menloworldwide.com/

APL Logistics Opens West Coast DC for Sara Lee Branded Apparel
Sara Lee Branded Apparel today announced that it will open its first distribution center on the West Coast in Rancho Cucamonga, Calif. The facility will be managed by APL Logistics, a provider of global logistics and supply chain services, and APL Logistics plans to employ approximately 150 workers at the facility. Opening this facility on the West Coast offers increased flexibility to effectively distribute several product categories produced in Asia and Central America. The distribution center will initially be comprised of 250,000 square feet and will begin receiving product later this month.
http://www.apllogistics.com/

BAX Global Increases Its Strength In The Aerospace Sector
BAX Global has been appointed as Satair OEM Division's provider for international transportation services. BAX Global is providing freight forwarding services for inbound supply of fasteners and hardware from a worldwide vendor base into Satair distribution centres in UK and France. Satair OEM is the largest aerospace hardware distributor in Europe with facilities in the UK, Denmark, France, US and China. Services for Satair OEM include freight transportation, customs brokerage, vendor management, tracking and tracing of purchase orders and dedicated aerospace customer support via its customer service center infrastructure in London, Paris and Phoenix, US.
Also, Marshall Aerospace has appointed the Company as its global provider for worldwide transportation services. BAX Global will provide freight forwarding services to support the supply of spare parts from North American and European vendors and finished product movements in and out of Marshall's operating centre in Cambridge, UK. Marshall Aerospace is a leading provider of aerospace solutions for aircraft operators worldwide.
http://www.baxglobal.com/

Famous Pacific Shipping Adds Central Europe to Its Network
Famous Pacific Shipping (FPS), an Asia Pacific-based freight forwarder and NVOCC, has extended its network coverage in Central Europe with the appointment of Austromar Spol as the new general agent for Austria, the Czech Republic and Hungary. Austromar is a freight consolidators headquartered in Vienna, has branch offices in Prague and Budapest and will coordinate Famous Pacific Shipping's activities
in these growing markets.
Famous Pacific Shipping continues to increase its links with all areas of the world, building up a global network second to none. The freight group is now represented in almost all the major global markets which gives members of the group the opportunity to grow their respective traffic flows and promote the Famous Pacific brand.
http://www.famous.com.au/

UPS, Pilots Reach Accord in Contract Negotiations
The Independent Pilots Association (IPA) and UPS Airlines (NYSE:UPS) reached a tentative agreement on a new labor contract that provides for wage and pension improvements and a variety of changes to work rules. It also enables the company to reward its pilots in a responsible manner, maintaining the flexibility needed to serve customers and expand the business while remaining competitive.
Specific details of the accord will not be disclosed before the IPA presents the tentative contract to all UPS pilots. The contract must be ratified by a majority of UPS's 2,700 pilots. If ratified, the contract would not become amendable until the end of 2011. According to the IPA, a vote by the pilots probably will be completed by mid-September.
http://pressroom.ups.com/

ProLogis Buys Four DCs in the US
ProLogis, the Aurora, Colo.-based real estate firm specializing in logistics facilities, purchasedl four distribution centers for approximately US$60.0 million in the Atlanta area. The DCs have a total of 140,000 sq. meters and are located on 115 acres of land. All four DCs are already 100% leased. Customers include Bombay Company, Lund International, Siemens Energy & Automation and Tyco International.
http://www.prologis.com/

Kuehne + Nagel Wins Warehousing and Distribution Contract From Sony
Kuehne + Nagel has been awarded a 3-year contract to manage warehousing and national distribution of Sony's Electronics Division products in Mexico. The agreement includes comprehensive value-added services that will be provided by its Tepotzotlán distribution center north of Mexico City. KN is dedicating approximately 40,000 sqm of warehouse space to Sony. Products handled encompass personal, audio, video and digital imaging products.
KN has established a Verification Unit, which works as a third party, responsible for ensuring Sony products' compliance with Mexican regulations. Value-added services include inserting Spanish literature, re-packing and product configuration, among others. Efficient domestic distribution is ensured via KNl's standardised transport management system; goods are delivered from Tepotzotlán directly to end customers.
http://www.kn-portal.com/

NYK Logistics Expands JIT Solution for Meridian
NYK Logistics (UK) Ltd has expanded its supply chain solution to meet increased volumes for specialist automotive castings company, Meridian Technologies United Kingdom (MTUK). Established in Canada 25-years ago, MTUK started production at a new Nottingham facility in July 2003. The company is a global leader in the production of magnesium die casting automotive parts.
In the UK, NYK Logistics provides a continuous JIT (just in time) collection and delivery service of instrument panels (transported on racks) to accurately meet customer's production line requirements. Since the logistics contract started in 2004, the volume of products handled has increased by 60% with over 12,000 parts delivered into five different clients over the last year as MTUK expands its automotive market share.
The dedicated service involves NYK Logistics providing stand trailers at Meridian's production site, which are loaded at pre-arranged times, and reverse logistics with the collection of empty racks. Runs are made throughout the day and night.
http://www.go2uti.com/

Ryder and Imperial Tobacco Canada Build Leading-Edge Retail Supply Chain
Ryder System is expanding its supply chain agreement with Imperial Tobacco Canada Limited. Since 1998, Ryder has provided warehousing services for Imperial Tobacco across Canada. Ryder's services are being significantly expanded to include complete order fulfillment and supply chain management services for Imperial Tobacco's products, including offshore warehousing and inbound transportation management. As part of its expanded services, Ryder will provide direct-to- store finished product delivery to more than 26,000 retail locations throughout Canada. This "purpose-built" delivery system, the first of its kind in the Canadian tobacco industry, will employ over four hundred specially trained truck drivers and material handlers, more than two hundred customized delivery vans, and twenty-one warehouse and cross dock facilities. In addition, Ryder will design and operate customized information technology systems to provide order visibility and inventory management.
http://phx.corporate-ir.net/

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