[0] Xerox Awards USCO Logistics 3PL Account.

Business Editors/High Tech Writers

HAMDEN, Conn.--(BUSINESS WIRE)--Jan. 8, 2001

New Deal Provides Integrated Distribution Services

for Xerox Field Technicians

USCO Logistics, a leading North American provider of integrated global logistics management solutions, announced it has been awarded a new 3PL account by Xerox Corporation that will provide critical parts distribution services to Xerox's Northeastern U.S. District Parts Centers (DPCs).

Xerox Corporation, headquartered in Stamford, Conn., awarded USCO Logistics a three-year contact to operate six of Xerox's existing District parts Centers in the Northeastern United States.

Xerox Corporation offers an array of innovative document solutions, services and systems -including color and black-and-white printers, digital presses, multifunction devices and digital copiers--designed for offices and production-printing environments. It also offers associated supplies, software and support.

"We are very pleased to obtain this major new account," said Robert R. Auray, Jr., President and Chief Executive Officer for USCO. "We feel our integrated logistics approach to WMS and distribution services will enable us to provide true value-added benefits for Xerox for many years."

USCO Logistics was awarded the account by overcoming several key challenges presented in the request for proposal. Foremost among the required resolutions was the need for a smooth transition plan that required careful upfront strategic solutions that could be executed efficiently without producing any negative impact on Xerox customers.

"That's what we required and USCO has delivered -- providing us with a virtually seamless logistics solution with no negative impact on our business or customers," said Elissa Dailey, Parts Fulfillment Manager for the Eastern Region of Xerox's Americas Manufacturing and Supply Chain Services.

Scott Wilkins, who serves as USCO's account executive on the Xerox account, said. "This new account represents a great opportunity for USCO, as well as a challenge," he said. "We had to work very quickly to meet the Xerox timeline and provide them with a smooth transition that would ensure the best possible customer services for the Company, its customers and field technicians. We are very happy with the result."

USCO Logistics, which includes among its customers Nortel Networks, Sun Microsystems, GlaxoSmithKline, AstraZeneca, Wal-Mart and Target, operates shared and dedicated distribution centers throughout North America, as well as regional stocking locations that house critical parts for expedited delivery of goods throughout North America. In September 2000, the Company was named "Warehouse of the Year" by Warehousing Management magazine for its continued pursuit of quality service and major steps it has taken to successfully redefine itself as a provider of integrated logistics services and a manager of information technology. On July 20, 2001, Kuehne & Nagel International AG, Schindelligi, Switzerland, acquired USCO for approximately $300 million. The transaction enables USCO customers to access a single global source for execution of a full suite of logistics management services.

USCO Logistics recently moved its corporate headquarters to Hamden, Conn. Its new address is: One Hamden Center, 2319 Whitney Avenue, Hamden, CT 06518. Phone numbers remain the same. For more information, visit it Web site at: www.usco.com.

For more information about Xerox Corporation, visit www.xerox.com.