C2, Inc. Reports Strong Growth in First Quarter Results.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--April 27, 2000

C2, Inc. (NASDAQ:CTOO) today announced its financial results for the first quarter of fiscal 2000. Net earnings for the quarter ended March 31, 2000 were $546,000, or $0.11 per share, compared to a net loss of $178,000, or $0.03 per share, reported for the prior year's first quarter. Revenues for the first quarter increased 77% to $45,753,000, driven by continued strong growth in both of C2, Inc. operating units, Total Logistic Control ("TLC") and Zero Zone. In last year's first quarter the operations of Zero Zone were included for a two week period as its acquisition by C2, Inc. was completed on March 12, 1999. Additionally in last year's period, C2, Inc. incurred one-time merger and acquisition related charges of $337,000, net of tax and minority interest.

William T. Donovan, C2 Chairman and CFO, commented, "C2's strong earnings growth in the first quarter reflects a continuation of the improved operating and financial performance generated by each of our business units over the last four quarters. TLC reported revenue gains of 42% in the quarter driven by the Company's success in marketing fully integrated logistic services and higher utilization of its warehousing and transportation capacity. In the first quarter, Zero Zone achieved sales growth of 50% over the comparable three-month period last year, reflecting extremely strong market demand for its newly designed refrigerated and freezer display cases. For the balance of the year, we anticipate continued strong growth in both revenues and operating margins driven by our higher backlog, successful business development activities and increased capacity in both operating units."

Total Logistic Control

Total Logistic Control, based in Zeeland, Michigan, is a national provider of integrated logistic services which include refrigerated and dry warehousing, transportation, supply chain management, international freight forwarding, food distribution, packaging and fulfillment services. Operations are conducted through a network of 13 logistic centers with 36.3 million cu. ft. of refrigerated capacity and 1 million sq. ft. of dry space. TLC operates its own transportation fleet of 203 refrigerated units. C2, Inc. owns 66.7% of TLC.

Operating results for the first quarter reflect continued strong growth in revenues, up 42% over last year's first quarter. All segments of the business grew resulting from the Company's successful execution of its business strategy to market integrated logistic services. Revenues for the quarter were $33,683,000 compared to $23,772,000 reported for the same period a year ago. EBITDA for the first quarter was $3,231,000, up 13% versus last year's comparable period, and 2% ahead of the fourth quarter of fiscal 1999's results. Improved operating margins are being realized due to operational productivity initiatives, rate increases and new information systems.

On January 11, 2000, TLC announced the purchase of a 2.5 million cu. ft. refrigerated warehouse in Paw Paw, Michigan. This location is proximate to its existing campus of refrigerated and dry logistic centers in Kalamazoo, Michigan and provides needed expansion capacity to serve the company's growing demand for its integrated refrigerated logistic services.

Zero Zone

Zero Zone is a Wisconsin-based manufacturer of refrigerated and freezer display cases used in grocery, convenience and drug store chains for retail merchandising of food, beverage and floral products. C2, Inc. acquired 70.6% of Zero Zone on March 12, 1999.

Zero Zone's operating results for the first quarter of fiscal 2000 reflect a continuation of high revenue growth and increasing profitability. Sales for the quarter totaled $12,070,000, up 50% over last year's three months ended March 31, 1999. In last year's first quarter only two weeks of Zero Zone's operating results were included in C2's consolidated operations as its acquisition was completed on March 12, 1999.

EBITDA for the first quarter of fiscal 2000 totaled $1,890,000, up 118% over the comparable three month period last year, driven by increasing sales to existing and new customers, new product introductions and expanded manufacturing capacity.

C2, Inc.

During the quarter, C2, Inc. purchased from an unrelated party 124,200 shares of its common stock in one trade for $4.625 per share, or $574,000. The purchase price was below the market price at the time. These shares are being held as Treasury shares by the corporation.

C2, Inc. is a new, Milwaukee-based public company principally engaged in third-party product distribution services and equipment manufacturing. C2, Inc. operating units include Total Logistic Control, a provider of refrigerated and non-refrigerated third-party integrated logistic services. TLC was recently cited by Inbound Logistics as a Top 10 Provider of Third Party Logistics Excellence for the second year in a row. C2, Inc.'s other operating unit is Zero Zone, a manufacturer of refrigerated and freezer display cases used in grocery, convenience and drug store chains for retail merchandising of food, beverage and floral products.

This and other C2, Inc. press releases and additional corporate data can be accessed via the world wide web at http://www.c2-inc.com.

This press release contains forward-looking statements within the meaning of the Private Securities Reform Act of 1995 concerning, among other things, C2, Inc.'s prospects for its operations. These risks and uncertainties are more fully described in the C2, Inc. prospectus filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should certain assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.

                               C2, Inc.
                  Consolidated Statement of Earnings
                 (In Thousands, Except Per Share Data)
                              (Unaudited)

                                                 Three Months Ended
                                                      March 31,
                                            --------------------------
                                                  2000         1999
                                                  ----         ----
Revenues:
     Logistic Revenues                         $ 33,683     $ 23,747
     Product Sales                               12,070        2,127
                                            ------------ -------------
                                                 45,753       25,874

Costs and Expenses:
     Logistic Expenses                           28,968       19,073
     Cost of Product Sales                        8,255        1,744
     Depreciation and Amortization                2,040        1,749
     Selling, General and Administrative
       Expenses                                   3,665        2,334
                                            ------------ -------------
                                                 42,928       24,900
                                            ------------ -------------

Earnings from Operations                          2,825          974

Other Income (Expense):
     Interest Expense                            (1,376)        (827)
     Merger-Related Expenses                         --         (326)
     Other Income (Expense)                          (2)          --
                                            ------------ -------------
                                                 (1,378)      (1,153)
Earnings (Loss) before  Income Taxes and
     Minority Interest                            1,447         (179)

Income Tax Provision                                588          (11)
                                            ------------ -------------

Net Earnings (Loss) Before Minority Interest        859         (168)

Minority Interest                                   313           10
                                            ------------ -------------

Net Earnings (Loss)                          $      546   $     (178)
                                            ============ =============

Basic Net Earnings (Loss) Per Share          $     0.11   $    (0.03)


Average Number of Shares Outstanding          5,180,827    5,202,664