Infineon Outsources N. American Distribution Operations

German semiconductor company selects USCO Logistics to manage parts for U.S., Canada, Mexico markets

Naugatuck, CT — January 15, 2004 — German semiconductor company Infineon Technologies has selected Kuehne & Nagel's wholly owned subsidiary USCO Logistics to implement a North American supply chain management solution, leveraging USCO's multi-client distribution center in Hayward, Calif.

Headquartered in Munich, Germany, Infineon offers semiconductor and system solutions for the automotive and industrial sectors, as well as for applications in the wired communications markets. The company was ranked as the world's sixth-largest semiconductor manufacturer in 2002.

Infineon, which currently operates its own distribution center in South San Francisco, will transition North American distribution operations to USCO Logistics' Bay Area facility.

USCO will manage inbound receipt, storage and distribution of finished parts to Infineon locations, key customers and distributors across the United States, Canada and Mexico. USCO's parent, Kuehne & Nagel, also manages a similar distribution center for Infineon in Grossostheim, Germany.

USCO said its integrated network of multi-client distribution centers delivers flexibility and agility while ensuring strict quality control, all within a variable-cost environment. Multi-client warehousing is especially attractive to companies looking to distribute goods from multiple locations, as well as those with changing distribution needs, the company says.

Other USCO customers include Wal-Mart, JC Penney, Nortel Networks, Sun Microsystems, Hoffman-LaRoche and AstraZeneca. USCO parent Kuehne & Nagel International, based in Schindellegi, Switzerland, is a global logistics provider, with 19,000 employees at 600 locations in 96 countries.

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