Circle International and Billings Freight Systems Team Up to Shrink U.S.-Mexico Supply Chains.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 18, 1999--

Global logistics provider, regional less-than-truckload (LTL)

carrier combine strengths to create new integrated service offering

Global logistics provider Circle International and regional LTL carrier Billings Freight Systems have teamed up to offer a new integrated surface transportation program speeding the movement of goods between the eastern and southern United States and Mexico.

The new "Service Beyond The Border" program combines the regional LTL network of Billings, Circle's customs brokerage and international logistics management resources, and dedicated team driver operations to provide expedited door-to-door LTL service between the eastern and southern U.S. and Mexico.

"Our customers told us they wanted a better alternative for service to and from Mexico," said Randy T. Clark, Circle's executive vice president and COO for North America. "This strategic alliance brings together two similar, service-driven cultures in a joint operation that achieves that goal and helps our customers compress their supply cycle."

Michael S. Albert, president and CEO of Billings, noted that the two companies are matching complementary strengths to create a superior service product. "We wanted to partner with Circle because of their 100 years of experience as a customs broker and their proven expertise as an international logistics provider," he noted. "Billings has a track record of over 75 years as a successful regional LTL carrier, which is perhaps the most demanding, competitive and service-sensitive sector of the trucking business."

Creating a Benchmark

The Circle/Billings program provides transit times of 2 or 3 day service from its service centers throughout the eastern and southern U.S. to Circle's Laredo, Texas gateway. Coverage in the U.S. incorporates the states of NY (including Manhattan), NJ, PA, MA, RI, VA, CT, DE, NC, SC, MD, TN, GA, AL and FL.

From the Laredo gateway, the program provides 1, 2 or 3-day delivery (depending on destination) with direct service to 22 major cities within Mexico, using a dedicated, satellite-equipped fleet with full tracking capability. Inbound service from Mexico to the eastern and southern U.S. via Laredo offers similar transit times. Shipments clear normal Customs processing and border crossing at Laredo generally within 24 hours.

Clark noted that one of the unique aspects of the program was the management approach taken by Circle and Billings. The companies created a joint operations and sales team staffed with specialists from Billings, who work in tandem with Circle's licensed U.S. customs brokers, sales and logistics personnel, and Circle's in-house Mexican customs broker at the company's Laredo office.

The approach facilitates and streamlines communication, transportation process planning and service management. In addition, a toll-free 800 number connects customers to a dedicated "Service Beyond The Border" desk where specialists trained in U.S./Mexico trade and transportation can assist with questions, take pickup information, and handle customer service inquiries.

"We've put a team of experienced professionals, each skilled in a specific discipline of the cross-border supply chain, together in one operation," Clark noted. "For the customer, this provides distinct advantages in simplicity, door-to-door reliability, value and peace of mind."

How the Service Works

U.S.-based customers of Billings or Circle call their nearest local office, or the toll-free service desk, to tender pickup information. -0-

--   Shipper information, time of pickup and other details are fed to
     both Billings and Circle's freight management systems.
--   A Billings driver is dispatched to the customer's facility and
     makes the pickup.
--   The freight runs in Billings' overnight and 2-day LTL line-haul
     network to Atlanta, where shipments are cross-docked into
     dedicated team-driver units, which are dispatched on scheduled
     runs daily to Laredo.
--   Circle customs and logistics specialists receive the shipment in
     Laredo, combine it, as necessary, with any other international
     freight destined for the customer's Mexico location, then manage
     the brokerage process, border crossing and intra-Mexico
     transportation leg. Regular transit updates are provided via
     global positioning satellite (GPS) uplink from on-board computers
     on each truck as they progress to the consignee in Mexico.
--   Door to door delivery is made with time-stamp confirmation
     provided to Circle Laredo via the GPS system. The customer then
     receives an all-inclusive single invoice incorporating
     transportation charges and customs fees.

-0-

Outbound Mexico-to-U.S. shipments follow the same process, mirroring in reverse the inbound cycle.

"We have joint-marketed this product with select customers over the past month, and we have been pleased with the response and its successful operation," said Albert.

Circle also provides a variety of value-added logistics programs from its Laredo center. Among these are distribution management services, including warehousing and merge-in-transit programs to combine materials sourced internationally with domestic U.S. goods into a single shipment to the destination.

With its connection to Circle's global supply chain, customers can utilize Circle Laredo as an inbound "vendor hub" to provide demand cycle support, line-side stocking, pick and pack, order fulfillment, and JIT delivery for maquiladora or other manufacturing operations. Similar "outbound" programs support U.S. distribution of Mexico-manufactured goods.

Effective this month, Circle moves into a new logistics center in Laredo, doubling the company's freight handling capacity. The center has racking systems for inventory storage, on-site security, warehousing and distribution services, and a large yard to accommodate increased fleet staging activity.

About Circle: Circle International Group, Inc. (NASDAQ: CRCL) celebrated its 100th anniversary in 1998. Today, with annual revenues of $750 million, more than 4,500 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 San Francisco-based Circle is available at www.circleintl.com.

About Billings: Since 1922, Billings Freight Systems has provided quality LTL transportation up and down the East Coast. Reliability and dedication to service have brought Billings Freight Systems recognition as one of the leading service carriers in the market today. Through its network of domestic terminals, Billings offers extensive 2-day service stretching from Miami to Boston and all points in between. The company provides next-day service in selected markets as well. In addition to premier regional transportation for general LTL freight customers, Billings specializes in the market-specific needs of the textile industry and other service sensitive manufacturing enterprises. More information about Lexington, N.C.-based Billings is available at www.billingsfreight.com.

Note to Editors: Photos are available upon request.