Circle Announces Alliances with Omni and Mentor to Form COM; Three Leading Companies Collaborate to Provide Extended Supply Chain Solutions to High-Tech Customers.

Business Editors & Transportation Writers

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 7, 2000

Circle International (Nasdaq:CRCL) announced today an alliance with two prominent Singapore-based companies, Omni Industries and Mentor Media, that will extend a new level of integrated supply chain management services to the high technology industry.

The alliance joins Circle's global transportation and logistics network, with Omni's world-class contract electronics manufacturing resources, and Mentor Media's expertise in process management, product assembly and packaging services, creating a partner that can offer single-source, turnkey manufacturing, assembly and delivery programs for high-technology goods.

"The collaboration between Circle, Omni and Mentor (COM) elevates the value that integrated logistics can bring to the high technology manufacturing sector," said Zulkifli Baharudin, vice president, logistics, for Circle International's Asia-Pacific region in Singapore, where the alliance is based. "Circle has been a leader for the past decades in providing quality logistics services. Our alliance with Omni and Mentor is a natural move that extends the scope of full supply chain management solutions for our clients."

As a strategic collaboration, COM brings together proven industry performers with core competencies in three key segments of the product demand chain, creating an integrated services package that can help companies realise further benefits of outsourcing. Leveraging the strengths of each market leader, COM is able to offer a global all-in-one solution for high technology clients, providing a turnkey manufacturing, assembly and logistics infrastructure. Technology companies gain complete assurance of having their goods manufactured to the highest specifications and supported through the entire supply chain and distribution process. COM has the capabilities to support customers anywhere in the world, at any time.

According to Teo Wai Cheong, director, business development, Omni Industries, "With this unique alliance between our organisations, COM enables high technology businesses to acquire a high-value, one-stop solution for outsourcing their manufacturing, assembly and logistics needs."

The trends toward globalisation and business process re-engineering today are leading to accelerated outsourcing of non-core functions, across a broader range of disciplines and countries. Thus, more companies have directed their supply chain processes -- including vendor management, contract manufacturing, assembly, fulfillment and delivery responsibilities -- to third party suppliers with global scope.

"Now, companies no longer see outsourcing as just a money-saving exercise," said Circle's Zulkifli. "Companies realise that outsourcing allows them to gain better and faster investment return, conserve expensive capital, and rationalize knowledge resources to maximize primary business needs and competencies."

By utilizing the expertise and resources of third party providers, companies expend less capital for asset investment and for funding and management of inventory, thereby releasing resources to improve cash flow, maintain financial flexibility, increase profits and respond to emerging opportunities. As companies go global and continue to embrace the potential of e-commerce, outsourcing will become even more important to facilitate timely and effective business transactions from around the world.

To remain competitive and meet the ever more stringent needs of their customers, companies need a proficient and effective partner to whom they can outsource many different needs. COM is one such partner that delivers a wide range of comprehensive services, from manufacturing through delivery, adhering to consistent global market standards, for any part around the world.

Said Choy Kok Kong, development manager, Mentor Media, "COM is a collaboration of three organisations whom, apart from being leaders in their respective industries, are recognised to operate and deliver at global standards. Each company, Circle, Omni and Mentor have attained ISO 9000 accreditation, an affirmation of their commitment to high level of product quality and excellent standard of services."

Located in Asia, the manufacturing centre of electronics products, most high technology businesses need to transport their goods to the North American and European markets, where most purchasers are situated. Thus it is imperative that their supply chain management partners have extensive reach around the world.

"Taking advantage of the extensive network of Circle world-wide offices and Omni and Mentor's presence in the Asia-Pacific region, COM will fulfill customers' needs to procure, produce, assemble and deliver for customers anywhere around the world," said Zulkifli.

Leveraging on the low labour and infrastructure costs in Asian countries, Omni and Mentor have set up offices and production plants in the region to manage the manufacturing and assembly process. Circle, in turn, operates one of its largest logistics complexes at its Singapore Districentre. Supported by the strength of Circle's 76 offices in 23 countries in Asia Pacific and more than 300 offices in 100 countries globally, COM is confident that it is able to deliver the manufactured and assembled products to the required destination, anywhere in the world at a more competitive price.

According the Zulkifli, "In this competitive and increasingly homogenous world, the thing that differentiates one company from another is the ability to deliver the customised products that each customer wants. Only organisations that are able to deliver an excellent level of customer service will achieve success."

Zulkifli added, "In the past, several of our clients have raised this issue to us -- if they can outsource the manufacturing, assembly and logistics aspects of certain parts of their business, they will be able to channel their resources to better respond to opportunities in the market. With the establishment of COM, we look forward to supporting the high technology industry, to look after their supply chain management process, work with them efficiently and effectively so that goods are produced to the highest quality and specifications, assembled and delivered in the shortest period. Thus these high technology companies will be able to better manage their resources without compromising on quality and ultimately the satisfaction of their customers."

About Circle: Headquartered in San Francisco, the Circle International Group Inc. (Nasdaq:CRCL) is a $800 million global logistics solutions company. Founded in 1898, Circle today employs 4,900 professionals in 300 offices in 100 countries. Circle provides integrated services including multi-modal air and ocean freight forwarding, customs brokerage, warehousing, distribution and fulfilment, logistics and information systems. The company established a presence in the Asia Pacific region nearly 30 years ago and today the regional headquarters is based in Singapore with 76 offices in 23 countries. Additional news and information about Circle International Group can be found at www.circleintl.com.

About Omni: Omni Industries Limited (SESDAQ:OMIND) is a world class turnkey contract manufacturer providing comprehensive electronics manufacturing services. Omni is highly experienced in manufacturing computer and computer peripherals, telecommunications, networking, industrial and consumer products.

About Mentor: Mentor Media Limited (SESDAQ:MENTOR) is an integrated manufacturing company specialising in outsourcing process management services for technology related companies. Apart from process management that ranges from outsourced R&D, supply chain management, fulfilment, distribution to aftermarket services, Mentor Media has in-house manufacturing capabilities in media distribution, printing, box build, kitting, localisation and configurations. Additional information about Mentor Media can be found at www.mentormedia.com.

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including, but not limited to, such factors as dependence on international trade and worldwide economic conditions, severe economic conditions in certain regions serviced by the Company, market demand, pricing risks associated with operations outside the U.S., currency fluctuations, competitive pressures, imbalances of capacity and demand in certain trade lanes and service areas, the Company's ability to integrate successfully businesses that it acquires, the increasing complexity of the Company's information technology, the effect of the Company's accounting policies, and other risk factors detailed in the Company's SEC filings.