Circle Dedicates New Singapore Logistics Facility; Company Awarded OHQ Designation From Singapore Economic Development Board.

SINGAPORE--(BUSINESS WIRE)--March 10, 1999--Circle International announces the official dedication of the company's 200,000-square-foot (19,000-square-metre) Singapore Districentre.

The facility was dedicated today by CEO and Chairman David Beatson, and Philip Yeo, chairman of the Singapore Economic Development Board (EDB), who was in attendance to present Circle Singapore with Operational Headquarters certification.

With global turnover in excess of US$700 million last year, Circle International provides logistics and supply chain management service to more than 4,000 customers located in 12 countries in the Asia Pacific region.

The company's Asian headquarters in Singapore delivers specialized transportation, logistics and global information service programs, such as product warehousing, fulfillment and distribution management, customs brokerage and trade law compliance, and integrated supply chain solutions for specific industries, such as computers and electronics, automotive, apparel, publishing, heavy equipment, and project engineering/construction.

On his first visit to Asia since joining Circle in mid-1998, Beatson commented, "The nature of the logistics industry has changed dramatically. Our business is no longer simply about warehousing and transportation, it's about information systems and the full spectrum of logistics and supply chain management services. Our philosophy is to listen to our customers, understand their business, and then provide the logistics information technology and professional support for every stage of an organization's supply chain".

The new Singapore Districentre is indicative of the new face of the logistics industry, providing a turnkey assembly, pack and shipping service to multinational companies, who source and supply product globally between Asia, North America, Europe and Latin America. It was the Economic Development Board's recognition of Circle's strategic leadership within the logistics arena that won the company OHQ status for its regional headquarters here in Singapore, noted Yeo.

In its Industry 21 -- blueprint for economic success, the Economic Development Board identified the need to develop Singapore into a leading integrated logistics hub by the year 2010. Already equipped with the infrastructure through such world-leading facilities as Changi Airport and the Port of Singapore, the Industry 21 action plan outlines the need to attract world-class logistics providers, such as Circle, who can deliver comprehensive and specialist logistics services. Only through providing such facilities will Singapore be able to maintain its competitive edge in the world marketplace and attract the world's top manufacturing companies.

At the Operational Headquarters award ceremony, Yeo commented that Circle is an excellent example of the kind of organization Singapore wants to attract. "We share a number of mutually beneficial objectives, such as developing the trend for manufacturers to increasingly outsource their logistics and supply chain requirements and in addition to seek other value-added services. Through leveraging on the infrastructure and capabilities of an organization like Circle, Singapore-based companies have the partner they need to grow their business competitively in the global marketplace," he said.

Paul Graham, president and COO of Circle International, Asia-Pacific, said that the Districentre already was servicing its first client, multinational computer company Compaq. "We have an increasing number of clients like Compaq who have outsourced a whole range of logistics needs to us, from staffing the customer support centre and receiving incoming orders, through to fulfillment, delivery to the customer and ongoing service and support," he said.

He added, "The benefit of a partnership with a global logistics supplier like Circle is measured in lower total logistics costs, and shorter supply cycles for the organization. The savings gained create increased competitiveness for our clients, by minimizing time in the production process and improving inventory turnover."

Beatson added that Circle is currently considering further multi-million dollar investments in the company's Singapore operations. "We are still evaluating the opportunities, but our initial thoughts are to expand Circle's information technology (IT) support resource in Singapore. We are confident that the local market has the necessary manpower and expertise available. This would be in line with our global initiative to upgrade and expand Circle's IT capabilities under our single global IT platform."

As a key "vendor hub" location, Circle Singapore will increasingly provide clients with value-added information services, in support of traditional transportation and physical logistics. These will include expanded Internet-based logistics information management tools, such as extranet-based services, which will benefit both larger multinational customers, as well as smaller players in the supply chain.

Circle International made a substantial investment in Singapore in early 1998 including the acquisition of Singapore-based logistics provider Concord Express. The combined entity, named Circle Concord International, is one of the top three companies in Singapore and strengthens the Circle Group's foothold in Asia through the network, resources and local market knowledge of an established and well-respected local player. This same acquisition strategy has been implemented in other parts of the Asian region in line with Circle's expansion plans.

About Circle: San Francisco-based Circle International Group, Inc. (NASDAQ: CRCL) celebrated its 100th anniversary in 1998. Today, with more than $US730 million in sales annually, 4,600 employees, and 340 offices in more than 100 countries, Circle provides worldwide transportation and logistics services that include air and ocean freight forwarding, customs brokerage, materials management, trade procurement, warehousing and inventory management, and global supply chain management services.

The company established a presence in the Asia Pacific over 20 years ago and today the regional operations are based in Singapore with 36 offices in 18 countries. Additional news releases and information about Circle International Group, its affiliates and worldwide operations can be found on the Internet at the Circle web site, www.circleintl.com.