Circle International Dedicates New $15 Million Logistics Center For Greater New York Area.

LAWRENCE, New York--(BUSINESS WIRE)--March 25, 1999--Circle International today dedicated a new $15 million logistics center here, expanding the company's capacity and enhancing its capabilities for international transportation, warehousing, inventory management and supply chain outsourcing services.

"This state-of-the-art complex reflects our commitment to investing in infrastructure to increase our efficiency and promote responsive, effective logistics solutions," said David I. Beatson, Circle's chairman, president and CEO. "Our customers want to 'outsource' more of their transportation and supply chain management needs to third party logistics suppliers, and this modern facility, along with our skilled and experienced people, answers that challenge."

With 100,000 square feet of enclosed warehouse space accessed from 24 loading bays, Circle's New York logistics center specializes in international air and ocean freight transportation, import/export customs brokerage, warehousing and distribution, and logistics services.

The multi-story complex includes a recessed material handling system to accommodate airline pallets and cargo containers, connecting scissor lift doors and built-in scales. It also has refrigeration capabilities to maintain strict environmental control for perishable or temperature-sensitive products on pallets or in airline cargo containers; racking systems for inventory management and order fulfillment services; security and fire suppression systems, and a dedicated trucking fleet.

The center's 27,000-square-foot office has modern communications and information technology resources supporting a staff of 112 professionals engaged in sales, customer service, operations support and import/export customs compliance activities.

"With this facility we can meet virtually any need of our customers for integrated transportation, material handling and logistics services," said William G. Woods, senior vice president, Eastern division for Circle. These services include product consolidation programs, cross-dock or "flow-through" center operations, inventory management, demand-cycle fulfillment activities such as pick-and-pack, labeling and light assembly, and timed-release distribution.

"Our new location has excellent proximity to Kennedy International Airport and New York City's containership and intermodal facilities," Woods noted. "We're ideally situated to respond promptly with the transportation resource most appropriate for the time-definite needs of our customers."

Circle now maintains over 200,000 square feet of warehousing and distribution space in the greater New York/New Jersey metropolitan area, including a separate facility in Edison, N.J. Circle's New York operations previously were located in two smaller facilities, where import and export operations were performed separately. By consolidating operations into a single new complex, specifically designed for Circle's needs, the company expects to improve service and efficiency while positioning itself to grow with its customers as their businesses become more global, and as they continue to embrace logistics outsourcing, noted Woods. It also supports Circle's growth plans through increased sales and marketing and focus on total logistics solutions.

Woods added that the company also intends to offer "Vendor Hub" services from the new facility, similar to that which the company recently launched in Singapore. Under the Vendor Hub concept, Circle works directly with a manufacturer's suppliers, managing purchase orders, inventory and release-to-plant scheduling, and performing JIT delivery to coincide with manufacturing production cycles. This advanced supply chain management process compresses the inventory pipeline, reducing the client's inventory costs and conserving capital assets. Circle plans to expand this service at strategically located facilities worldwide. In this scenario, customers would utilize Circle's facilities, resources and systems as their infrastructure network for sourcing, staging and distributing either production materials or finished goods globally.

About Circle

San Francisco-based Circle International Group, Inc. (Nasdaq:CRCL), celebrated its 100th anniversary in 1998. Today, with annual revenues of $738 million, more than 4,600 employees and 323 offices in over 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 control programs, and global supply chain management services. More information about Circle is available at www.circleintl.com.