Exel Delivers a Range of Services For Bayer Diagnostics

(LONDON 8 April 2003) - Exel, a leader in supply chain management, announced business wins with Bayer Diagnostics, part of the Bayer AG group, and one of the world's leading providers of equipment for medical diagnostics.

Delivering a range of ground-based and freight management services across Bayer Diagnostics' international supply chain, Exel will manage airfreight movement from the United States into the United Kingdom and deliver warehousing and order fulfilment services for Bayer Diagnostics' customers in Northern Europe.

Supporting Bayer Diagnostics' air import business - its U.S. vendor program - Exel will handle materials from around 80 U.S. suppliers to the customer's manufacturing operations in the United Kingdom. The time-definite services into Heathrow will ensure efficient clearance and delivery, meeting the just-in-time schedule demanded by Bayer. On completion of implementation, Exel will have established six U.S. vendor hubs, located in Tampa, Fla., Boston, New York, Chicago, Los Angeles and Portland, Ore.

Additionally, Exel will support Bayer Diagnostics' European distribution from its existing multi-user healthcare facility in Nijmegen, The Netherlands, with the award of a five-year contract. Delivering a range of storage, inventory management and order fulfilment services for consumable products destined for hospitals, laboratories, and clinics across Northern Europe, Exel will manage a product range that includes temperature-controlled and hazardous goods requiring specialist handling.

In preparation for onward delivery by preferred carriers to Benelux, Germany, Scandinavia, the United Kingdom and across Eastern Europe, Exel will also provide value added activities including returns management and kitting. It is anticipated that Exel will be required to manage over 2,000 orders per day from this facility.

Christian Anders, European supply chain director, Bayer Diagnostics, said, "Working with Exel represents a major change in how we service our diagnostics customers in Europe and will deliver significant cost reductions across our entire supply chain, from supply to end user. We selected Exel because of the company's experience in the healthcare industry and integrated capabilities. We are confident that with Exel we can overcome our challenges and achieve cost-effective and world-class solutions."

Nick Revell, sector director, Healthcare, Exel, said, "This business builds on the work we currently carry out on behalf of Bayer Diagnostics, incorporating both freight management from manufacturing sites in the United Kingdom and contract logistics operations from The Netherlands. It also highlights Exel's ability to deliver value across the supply chain through its wealth of capabilities. This partnership represents an excellent opportunity for both Exel and Bayer Diagnostics over the coming years to work together on further integrated solutions."

Exel is a 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.

Bayer is an international, research-based group with major businesses in polymers, health care, agriculture and speciality chemicals. Further local information is available at www.bayer.co.uk.

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