Circle International Awarded Worldwide Logistics Contract from CellStar Corporation.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 16, 1998--Circle International has been selected by CellStar Corporation to provide a worldwide logistics network for CellStar's Global Satellite Services (GSS) group, which distributes global personal communications products.

CellStar is one of the world's largest non-carrier wholesale distributors of wireless communications products, including hand-held satellite communication handsets, a new transceiver device that provides "one number" voice and paging capability anywhere in the world. Under the multi-year contract, Circle will provide CellStar's GSS group with integrated global logistics services, such as transportation, customs brokerage, warehousing, inventory management, order fulfillment and warranty program support.

"Our commitment to CellStar's Global Satellite Services group is to design and operate a logistics network that serves as the backbone of their distribution infrastructure worldwide, and provides rapid and efficient fulfillment of this new product line to customers," said David I. Beatson, president and CEO of Circle, which provides transportation and logistics services worldwide. "This project demonstrates the breadth and depth of Circle's global resources and expertise, and the value we can deliver with our full-service capabilities for supply chain management."

CellStar's GSS group plans to establish dedicated, regional logistics operations at Circle facilities around the world. The first will be at Dallas-Fort Worth International Airport, with other logistics facilities planned for development as product demand increases.

Steve Rota, director of logistics for CellStar's GSS group, noted that Circle's global infrastructure, experience in managing multi-continent product distribution, and consultative approach were the key factors in the agreement. "Circle did their homework on our business," said Rota. "They analyzed our needs and created an integrated logistics program that we believe will create efficiencies across the supply chain and help us improve the quality of service to our customers."

With its global network and integrated logistics centers, Circle offers its clients a full range of demand cycle management and product deployment services, noted Kim Wertheimer, Circle's executive vice president of logistics. These include customs brokerage, compliance and clearance; inbound and outbound transportation; local distribution direct-to-reseller or end user; secure warehousing and inventory control; and "kitting" operations where product can be assembled with country-specific packaging, documentation, programming and other accessories to complete order fulfillment.

Wertheimer explained that in its development of the CellStar GSS logistics program, Circle conducted extensive research and analysis of projected product volumes, distribution patterns, transportation resource costs, and customs duty and clearance requirements for over 200 countries. Circle also studied CellStar's deployment plan to assess opportunities for the logistics process to support sales and marketing initiatives.

"That gave us an understanding of the division's business and market objectives," said Wertheimer. "We then worked closely with CellStar's GSS team and their suppliers to design a logistics process that would streamline customs compliance and ensure rapid order fulfillment."

Rota noted that the logistics infrastructure established with Circle will help CellStar's GSS group to manage product staging and delivery for variety of manufacturers.

CellStar Corporation (NASDAQ:CLST) is a global integrated wholesaler and retailer of wireless handsets and other wireless communications products, with operations in North America, Latin America, the Asia-Pacific Region and Europe. CellStar is one of the world's largest non-carrier wholesale distributors of wireless handsets for major manufacturers. For the first nine months of 1998, the Company recorded revenues of $1.4 billion. Additional information about CellStar may be found on its web site at www.cellstar.com.

San Francisco-based Circle International Group, Inc. (NASDAQ: CRCL) celebrated its 100th anniversary in 1998. Today, with $700 million in sales annually, 4,000 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. 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