Exel and the Seiyu Ltd. enter into transportation services contract    

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(Tokyo, Japan – 24 May 2005) Exel, the global leader in supply chain management, announced today that it has entered into a contract with The Seiyu Ltd. to provide transportation services at Seiyu's Misato Distribution Centre (Misato DC), scheduled to begin operations in summer 2006. The Seiyu Ltd is a leading Japanese retailer in close partnership with Wal-Mart, its largest shareholder.

Under the agreement, Exel in Japan will operate and manage transportation operations at the Misato DC which will initially serve approximately 60 stores in the Tokyo metropolitan area, as well as handle merchandise transfers between Misato and other Seiyu DCs in Japan. Approximately 100 trucks and 250 personnel will be dedicated to supporting these operations.

This contract extends the longstanding relationship between Exel and Wal-Mart and its affiliated companies worldwide. This relationship is exemplified by Wal-Mart recently selecting Exel for its 'Specialty Distribution Center of the Year' award for 2004 by the retailer's Johnstown, New York, returned merchandise distribution center.

"Since announcing in February our intent to work together at the Misato DC,

our two companies have developed a deeper understanding and respect for each others' key capabilities in the Japanese market, " said David Frentzel, Vice President, Supply Chain Solutions, Exel in Japan. "We look forward to leveraging Exel's local and global expertise to Seiyu's supply chain and delivering outstanding value and services."

Geoff Sease, Logistics and Supply Chain Director, Japan, Wal-Mart Advisory Services, commented, "Seiyu intends to combine its local and global processes, systems and best practices with Exel's local Japanese and global transport capabilities to lower operating costs, improve asset utilisation, standardise processes, enhance flexibility and customer service. The Misato DC and the new partnerships which will form as a result of this initiative are an integral part of the establishment of a new supply chain platform for Seiyu. Progress towards a new supply chain will allow us to lower costs and in turn lower the price of goods for our customers, our principal objective being to better serve Seiyu customer needs. We are delighted to be able to work with Exel on the Seiyu Misato DC and look forward to maximising the benefits of partnering with their unique know-how and expertise."

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