Circle Announces Facility Expansions in Los Angeles, Dallas, Edison, NJ and Madrid, Spain.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--June 5, 2000

Circle International has opened expanded logistics facilities in Los Angeles, Dallas, Edison, NJ and Madrid, Spain in response to increased customer business for international transportation, logistics and supply chain management services.

The expansions collectively add over 300,000 square feet of space for additional dedicated customer logistics and distribution activities as well as general freight forwarding operations, and position the company with capacity to handle future business growth as well. Circle is a global provider of transportation, logistics, supply chain management and information services.

The new facilities reinforce Circle's commitment to continued investments in infrastructure resources to support increased business levels and to efficiently service the needs of customers. Specific capabilities of each new location include:

-- Los Angeles: Full-service global logistics and distribution

services with 34 loading doors, 30 foot-high ceilings,

multi-level racking systems 7,500 pallet positions for product

storage, a light assembly and kitting area, packing and

crating operations, and modern materials handling equipment.

At 163,000 square feet, the facility features a full security

system that includes T.A.P.A. certified camera monitoring,

motion detectors and a gated yard, and dedicated trucking

resources providing local and interstate pickup and delivery.

The facility, one of two in the Los Angeles area, has a

support staff of 80 employees involved in cross dock,

trans-loading, pick and pack, warehousing & distribution,

product testing, kitting, in transit merge operations,

customer service, sales and administration. It is centrally

located, five miles from the Long Beach/Los Angeles seaport,

14 miles from Los Angeles International Airport, and directly

adjacent to major interstate freeways. The facility is

equipped with fulfillment and warehouse management systems

that accept purchase orders electronically, and monitor and

track product inventory for various clients. Logistics

business at Circle's Los Angeles operations has grown by some

300 percent over last year. Customers using the facility

include Cygnion, Visteon, Goodyear and Jack Schwartz Shoes.

-- Dallas: 112,000 square foot facility, dedicated services for

managing inbound deliveries, warehousing, order fulfillment 

and inventory management, pick and pack and domestic

distribution. The facility has 30 employees, 18 dock doors and

33-foot-high ceilings with modern racking systems allowing

multi-level inventory storage. Product staging and handling

equipment supports over 9,000 "pick" locations encompassing

5,000 SKUs, linked to online warehouse management systems that

monitor, track and update product inventory for various

clients. One of two Dallas-based Circle facilities, its

primary client is Visteon Climate Control Systems, Ltd., which

utilizes Circle as its logistics provider for distribution of

automotive heating and air conditioning components to

aftermarket customers. Products are received from

manufacturing sites in Europe, Africa, South America, Asia and

the U.S., staged at the Dallas center, and redistributed to

customers throughout the U.S.

-- Edison, NJ: Expanded from 75,000 square feet to 122,000 square

feet, in response to increased customer demand for value-added

distribution services, inventory management, freight

forwarding and client-specific fulfillment projects. Warehouse

capacity increased to 3,200 pallet positions and 24 loading

bays, with additional bulk storage and expanded packing and

crating operations. Office space increased from 10,000 square

feet to 13,500 square feet to accommodate additional

operations, sales, administration and customer service

resources. Circle's Edison operation has seen its

logistics/distribution business increase by more than 50

percent in the past year. The expansion will serve current

clients, as well as providing capacity for additional new

business. Customers include Bradlees Department Stores, BMW,

Goodyear and The Museum Company. The facility also is licensed

as a bonded warehouse and container freight station, and is

one of Circle's largest ocean freight facilities.

-- Madrid, Spain: Purpose-designed to Circle's specifications,

the new warehouse and office is the company's first dedicated

facility in Madrid, and will support specific customer

logistics projects as well as more efficient freight

operations. Services provided include cross-docking, product

storage and staging, inventory management, pick and pack and

consolidation/deconsolidation of goods transiting Madrid and

the Iberia Peninsula. Comprising nearly 15,000 square feet and

accessed by eight dock doors, the facility is located in a

Free Trade Zone directly on Madrid airport property. Its first

customers are fashion and apparel manufacturers exporting

products from Spain to the United States as well as Asia and

Latin America.

The new facilities represent an overall investment of nearly $9 million and provide Circle with capacity and modern infrastructure to grow with its customers, efficiently handle new business, and gain operational flexibility for supply chain management and value added services in each location.

About Circle: San Francisco-based Circle International Group, Inc. (NASDAQ: CRCL) is a global transportation, supply chain management and information services company. Founded in 1898, Circle today has more than 4,900 employees, with over 300 offices in 100 countries. With annual revenues of over $800 million, Circle's services include air and ocean freight forwarding, customs brokerage, materials management, warehousing, trade facilitation and procurement, and integrated logistics and supply chain management services. More information about Circle is available at www.circleintl.com.