Asia Pacific Expansion Strategy Underscores Growth Prospects For Menlo Worldwide As Leading Third-Party Logistics Provider

An aggressive strategy of acquisitions and strategic expansions in key Asia Pacific markets is establishing Menlo Worldwide, LLC, the global logistics subsidiary of Con-way Inc., as one of the best-positioned third-party logistics providers in the region as Asia continues to grow as the manufacturing workshop to the world.

Menlo has earmarked more than US$6.5M for facility expansions and upgrades in Singapore, as well as in Thailand and Malaysia. This follows recent acquisitions of Singapore's Cougar Express Logistics and Shanghai-based Chic Holdings totaling nearly US$100M, which has more than doubled Menlo's presence in Asia. Through these acquisitions, Menlo has grown the number of its operating sites in the Asia Pacific from 13 to 155, its number of employees from 350 to over 2,000 and its warehouse capacity from 300,000 to 3.5 million square feet.

"Thanks to our recent expansion in Asia, Menlo is arguably the best-positioned, ‘pure' third party logistics provider in the region. We now have one of the industry's strongest, most capable and extensive logistics distribution networks for Asia. This network also allows us to provide more comprehensive global solutions for all our current and future customers," said Robert L. Bianco Jr., president, Menlo Worldwide, at a press briefing today in Singapore. "What's more, by concentrating on what we do well in specific industries and focusing on bringing value-added services to our customers, we are achieving genuine customer satisfaction. We believe Asia represents a huge growth opportunity for Menlo, and we're putting in place a comprehensive, competitive footprint and service portfolio to capture that opportunity."

Headquartered in Shanghai, Chic Holdings Ltd. is a profitable, well-established provider of domestic third-party logistics and transportation management services in the People's Republic of China. The acquisition fulfills several strategic objectives for Menlo including establishing a material presence, excellent service portfolio and solid growth platform in China, as well as an expanded customer base, enhanced vertical industry presence and a clearly-differentiated global network offering. The company expects the acquisition to close this month.

Cougar Express Logistics, one of Singapore's premier logistics companies, significantly extends Menlo's penetration into Singapore and South Asia with regional warehousing and distribution, freight forwarding and automotive logistics services, while adding an extensive presence in the wine and spirits distribution business. With the completion of the acquisition, Menlo has named Heinz-Peter Faust, formerly Cougar's CEO, to the new position of Regional Managing Director for South Asia. In this role, he will lead regional operations and business development as the organizations are integrated into a streamlined network.

Facility upgrades and expansions position company for growth

Menlo is establishing two new facilities in Singapore to accommodate new business as well as expansions with existing customers in the computer manufacturing, high-tech and consumer products industries. Representing a long-term investment of some US$3 million, the company is opening a 93,000-square-foot modern, multi-client distribution center in Jurong. A new 14,400-square-foot center is also opening adjacent to Menlo's current regional logistics hub in Singapore, located at the Airport Logistics Park of Singapore (ALPS). This dedicated facility supports a recent new contract award to provide receiving, inventory management and pan-Asian distribution for a major computer equipment manufacturer.

In Thailand and Malaysia, Menlo is upgrading its operations with two new facilities totaling 90,000 square feet supporting regional warehousing, distribution and logistics for several customers. Combined, the company's South Asia operations now comprise 16 operating sites across Singapore, Malaysia and Thailand with 600 employees and more than 1.8 million square feet of multi-client warehouse space providing a wide range of logistics and distribution management services.

Menlo is also on track to record a new benchmark for global contract wins in 2007. In Asia, recent new customer wins or business expansions have included automotive parts manufacturer Bosch; athletic shoe and accessories distributor Runner's World; retail fashion apparel company EUT Fashion; a multinational computer network equipment manufacturer; and a leading manufacturer of valves and fluid handling components. The customers have retained Menlo as outsourced logistics provider for a variety of receiving, warehouse and inventory management, transportation and customer service assignments.

About Menlo Worldwide
Menlo Worldwide, LLC, is a global provider of logistics, transportation management and supply chain services with operations in North America and on five continents. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide's services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain re-engineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 13 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide, LLC, is a subsidiary of Con-way Inc., a $4.7B freight transportation and logistics company and FORTUNE magazine's "Most Admired Company" in transportation and logistics for 2007. For more information please visit us on the web at www.menloworldwide.com.

About Chic Holdings Ltd.
Chic Logistics and Chic Supply Chain Management are the principal owned subsidiaries of Chic Holdings Ltd., a corporation registered in the Cayman Islands. Based in Shanghai with offices and operations throughout China's provinces, Chic specializes in one-stop logistics services, from local distribution services, regional distribution services and home delivery services through a complete and modern nationwide supply chain service. Fortune 500 companies around the world look to Chic for innovative solutions that help plan business strategies in China, improve customer service, accelerate order cycle times, and tighten control of the supply chain-all while reducing costs in transportation, inventory, and order fulfillment. For more information, please visit us on the Web at www.logistics-chic.com/en/index.htm.

Cougar Express Logistics
Established in 1986, Cougar Express Logistics has made steady progress to become one of Singapore's key growing enterprises offering diversified logistics activities which include regional warehousing and distribution, freight forwarding and automotive logistics services. Looking forward as part of the Menlo Worldwide enterprise, the company aims to become the premier international warehousing, logistics and agency and terminal operations brand for value-added services and customised solutions throughout South Asia.

SOURCE: Menlo Worldwide, LLC