Exel Excels in the New Year

Lands logistics deal with Compaq, acquires All Cargo Logistics of Austria

HOUSTON  January 14, 2002  The new year seems to be getting off to a good start for supply chain solutions company Exel. In the first of two recent announcements, Exel has been awarded a three-year, multi-million dollar contract from the computer company Compaq. In addition, the company recently finalized a deal to acquire 100% of All Cargo Logistics ("ACL"), an Austrian air freight forwarder.

First, the Compaq contract includes the provision of an all-inclusive supply chain solution for Compaq's Enterprise Business Group in Houston, Texas. Compaq's Enterprise Business Group produces large enterprise servers, Internet platforms and storage systems for commercial customers. Based from a 400,000 sq. ft warehousing facility in Houston, Exel will operate a raw material/supplier-owned inventory hub, provide lineside and local shuttle deliveries, and the shipping of finished products direct to customers and Compaq partners around the globe.

Joe Kaplewicz, director of North American Logistics Operations, Compaq explains, "Exel has been a key logistics partner for Compaq for the past several years, and clearly, they were well positioned to expand their scope of logistics services to us.  Our supply chain solution will be supported by comprehensive, real-time supply chain information, which is key with our continued focus in increasing inventory velocity."

And, in a move that will help give Exel more logistics power for jobs like the Compaq deal, the company will also make arrangements to acquire 100% of All Cargo Logistics ("ACL"). ACL operates through three sites in Vienna, Linz and Innsbruck and provides services to a wide range of industries including consumer products, Food-stuffs and general manufacturers.

Exel has for a number of years operated in Austria through a local agent. As Exel's global coverage has grown there has been an increasing need to establish a stronger Exel presence in Austria to gain benefits from the growth in demand for longer, more integrated supply chains, and ACL helps fulfil this need.

Mick Fountain, Chief Executive of Exel's Technology and Global Freight Management division, commented: "ACL provides an excellent opportunity for Exel to strengthen its presence in the Austrian air-freight market. We have worked for a number of years with the high quality team at ACL and believe that, as part of the wider Exel business, they can leverage their strong customer relationships and accelerate Exel's growth in the region."