Exel Acquires Pharma Logistics Group, A Leading European Healthcare Logistics Business

(LONDON) - Exel, a global leader in supply chain management, today announced that it has acquired the Pharma Logistics Group and its related operations. Based in Italy and Belgium, Pharma Logistics has established a successful business with key multinational pharmaceutical and healthcare customers. The acquisition builds on Exel's successful growth strategy and provides further strength in Continental European operations.

Exel's growth strategy is built around establishing world leading positions in selected industry sectors. This customer and market focus allows Exel to provide industry leading expertise and develop effective supply chain solutions for its clients. Healthcare is one of Exel's core sectors and during the last few years has experienced significant market growth as customers look to maximize the benefit of fast, efficient and secure supply chains.

Exel has established a leading global healthcare business through organic growth and selected strategic acquisitions. This included Brazilian business Unidock's and Turkish logistics operator Transbeynak, both acquired in 2003, as well as the Total Logistics Company headquartered in Australia, bought in 2001.

Through its own development, Pharma Logistics has expanded from its Italian roots to create a broader, pan-European service, including nine facilities with more than 350 people. Customers include leading pharmaceutical and healthcare companies that have used the business to provide comprehensive distribution solutions.

Exel expects to accelerate the development of the business through enhancing revenue growth opportunities with its existing customers, as well as developing broader capabilities in Pharma Logistics' existing markets.

Exel acquired the business for an undisclosed consideration, part deferred, payable in cash from existing resources. Net tangible assets as of Dec. 31, 2002, were EUR5m (£3m). The acquisition is expected to be earnings enhancing in its first full year, before goodwill and related charges.

John Allan, Exel's chief executive, commented, "The acquisition of Pharma Logistics marks another significant milestone in the development of our global healthcare business. Building on the success of our Americas, U.K. and Northern European operations, and combined with recent acquisitions in Asia, Brazil and Turkey, Pharma Logistics will accelerate our growth opportunities across continental Europe. The acquisition brings with it a strong management team who will complement our existing capabilities and help support growth in the region. Completed towards the end of 2003, Pharma Logistics brings our total spend on acquisitions to more than £100m last year."

Eddy de Vita, Pharma Logistics' managing director, commented, "The Pharma Logistics' team welcomes this opportunity to join the Exel family and help to establish Exel as the 'number one' global healthcare logistics service provider. This development is also welcomed by our customers, who will benefit from our new scale, geographical reach and expanded range of services."

Exel is a global leader in supply chain management, providing customer-focused solutions to a wide range of manufacturing and retail industries. More information is available at www.exel.com.

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