USFreightways Drops Freight Forwarding

Sells two divisions to GPS Logistics and Seko Worldwide

Chicago  October 18, 2002  GPS Logistics and Seko Worldwide Acquisition are set to acquire the freight forwarding subsidiaries of USFreightways, the carrier announced today.

USFreightways expects the sale of its USF Worldwide and USF Worldwide Logistics (UK) divisions to close on or before October 31.

Terms of the contract were not disclosed, but USFreightways said it will discuss the deal in its as-yet-unscheduled third quarter earnings conference call.

"Since early in the third quarter, when we announced our decision that the freight forwarding segment did not fit our business strategy, we have been seeking an arrangement that would bring this portion of USF's history to a conclusion," said Samuel K. Skinner, USFreightways' chairman, president and CEO, in a statement.

"This agreement will free USFreightways to concentrate on the growth and profitability of its core [less-than-truckload], [truckload] and logistics operations," Skinner added.