Cygnion Selects Circle as Global Supply Chain Manager.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--March 2, 2000

Dedicated, Door-to-Door Strategic Logistics Program Delivers

Outsourced Solution for Client's Global Transportation, Assembly

and Fulfillment Needs

Cygnion Corporation has selected Circle International to provide global supply chain management services integrating transportation of product from Asia with distribution in North America.

Under the multi-year contract, Circle will operate a strategic logistics program incorporating consolidation of component products in Asia, air and ocean freight transportation, U.S. customs brokerage and clearance, with warehousing, assembly and fulfillment services in North America.

"Our mission is to design, market and service the best personal communications products in the world," said Mark Serpa, manufacturing logistics manager for Cygnion Corporation, a recent spin-off of Ericsson, Inc. (Nasdaq:ERICY). Cygnion develops leading-edge, PC-centric communication systems for the small business and home office marketplace. "Circle's infrastructure and capabilities allow us to outsource, to a single provider, segments of the day-to-day functions of a complex global supply chain -- from manufacturing in China to the customer's door in North America."

Serpa noted that Circle won the business over six other service providers on the strength of its global network, dedicated personnel and demonstrated expertise integrating transportation, warehousing and fulfillment operations.

In the solution designed for Cygnion, Circle's Hong Kong center receives and consolidates various product components from manufacturing plants in China, and then arranges air or ocean transportation to Los Angeles. Circle's logistics center in Los Angeles receives and verifies the goods and obtains clearance from U.S. Customs. To meet Cygnion's customer service needs, Circle established a dedicated and highly specialized "kitting" operation. In this custom-designed fulfillment process, Circle employees package and secure the handsets and other components in retail display cartons, along with documentation, accessories and promotional materials.

Once retail-ready orders are completed, Circle manages the delivery process for shipping direct to retail outlets. "Our core competency is designing supply chain processes that help our customers remove cost and add value," noted Ali Shaikh, general manager of Circle's Los Angeles operations. "We are part of Cygnion's customer solution. By leveraging our resources and expertise, Cygnion saves the direct investment in distribution infrastructure and fulfillment. They also capture the benefit of a logistics operation dedicated to their product, and focused on quality that enhances customer satisfaction."

The Cygnion operation is initially under way at Circle's main Los Angeles center adjacent to the Los Angeles International Airport. It is scheduled to move this month to a new 160,000 square foot facility. The nearby facility, representing a significant expansion of Circle's presence in the area, was purpose-designed to provide logistics and fulfillment operations for customers utilizing Southern California as the hub for North America distribution programs.

About Circle: San Francisco-based Circle International Group, Inc. (Nasdaq:CRCL) is an $800 million global transportation, supply chain management and information services company. Founded in 1898, Circle today has more than 4,500 employees, with 323 offices in 100 countries. Circle provides complete logistics solutions for clients worldwide, including air and ocean freight forwarding, customs brokerage, materials management, warehousing, trade facilitation and procurement, and integrated supply chain management services. More information about San Francisco-based Circle is available at www.circleintl.com.

About Cygnion: Cygnion Corporation develops and markets communication solutions for the small business and home office market. The core team of Cygnion Corporation started research and development in this field in 1996. The goal of this group is to create an effective convergence between the telecommunications and personal computer industries. Cygnion's extensive experience in the areas of PC telephony applications and wireless communications places the company in a unique position to deliver leading-edge, communications solutions to the growing home-based and small business market. For product literature or more information, visit www.cygnion.com or call 877/GET-GENIE.