Choice Logistics Completes Transition to Technologically Advanced Leader of Service Supply Chain Solutions

NEW YORK, Feb. 21, 2005 -- Choice Logistics, the global leader in mission-critical service logistics and supply chain solutions, today announced that the company has completed the sale of its ground courier business. Founded in 1964 as a ground courier company focused on local same-day deliveries in seven states, primarily on the east coast, Choice has seamlessly evolved into one of the world’s premier partners of mission-critical logistics.

“We recognized many years ago that technology would virtually eliminate the need for hand-delivered documents,” said Michael Katz, chief executive officer for Choice Logistics. “Identifying these trends over ten years ago motivated Choice to focus on its service parts logistics business, and begin exiting the ground courier business over two years ago.”

Choice had initially thought to sell off the courier business to one of the national, publicly traded courier companies, but then saw the strategic and customer advantages to working a deal with multiple, locally owned courier companies in each of the seven markets.

The move to streamline the business provided immediate benefit to the company and all of its stakeholders.

“Since deciding to make the transition, the entire organization has been able to focus on the logistics business, which has been growing exponentially year-over-year, opposed to spending time building up the extremely labor intensive courier business,” said Katz. “The increased focus and success has allowed the client base to realize even greater results, while providing a significant impact to the bottom line.”

In addition to maintaining its top-down commitment to excellence and consistency of precision throughout the transition process, Choice took several “extra” steps to ensure the continued success of its logistics business. In 2003 Choice updated its ISO certification originally awarded in 1998 to 9001:2000. The company experienced no executive turnover or change in processes while methodically implementing over 260 active Strategic Stocking Locations (SSLs) around the world to provide expedited delivery services 24x7x365 for direct parts deployment.

Client satisfaction has never been higher.

With the divestiture of the courier business behind them, Choice continues to strategize on solutions to better serve existing clients, while rapidly penetrating the global service parts logistics business.

Building on the momentum generated in 2004, the company’s strongest year to date, 2005 promises significant growth in all global markets across multiple industries including telecom, medical equipment, high-tech, and data storage.

The response from the industry is very positive.

"It's not surprising that Choice Logistics has capitalized on the ripe opportunities within the service parts logistics arena," said Mark Vigoroso, vice president of post-sales service research at the Aberdeen Group. "Our research indicates that best-in-class companies are actively looking to automate and optimize their service chains in order to drive revenues, bolster profitability, and shore up customer satisfaction."

Not only has Choice streamlined its operations, the various acquirers of the courier operations have taken over a very solid client base, which increased their revenues that would typically have taken years to build on their own. ”

About Choice Logistics
With over 250 strategic stocking locations (SSLs) around the world and 24x7x365 logistics services for direct management of mission-critical inventory assets, Choice Logistics is a preferred global provider of outsourced logistics and integrated inventory management solutions. Leading companies including Avaya, Cisco, EMC, Equant, Hitachi Data Systems, and others have selected Choice for their third party logistics needs. To learn more about Choice Logistics, visit www.choicelogistics.com; call (800) 593-2108, or e-mail info@choicelogistics.com.

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