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Pacer International Moves Its ``Cartage'' -- Local Trucking -- Unit to Pacer Stacktrain.

Business, Logistics and Transportation Editors

CONCORD, Calif.--(BUSINESS WIRE)--Sept. 16, 2003

Pacer International, Inc. (Nasdaq:PACR), the non-asset based North American third-party logistics and freight transportation provider, said it has transferred its Los Angeles-based cartage (local trucking) operation to its wholesale division, Pacer Stacktrain. The cartage unit was previously part of the company's retail division, known as Pacer Global Logistics.

Pacer Stacktrain provides double-stacked rail and related transportation services, including cartage, for containerized freight, serving intermodal marketing companies (IMCs) and other transportation intermediaries. Pacer Global Logistics (PGL) provides logistics and transportation services directly to manufacturers and retailers.

"Our objective in shifting the cartage unit to the wholesale division is to better align the cartage unit's products with the product portfolio offered by Pacer Stacktrain," said Don Orris, chairman and chief executive officer of Pacer International.

"This means our IMC customers can directly access these cartage capabilities through the wholesale channel in order to provide a reliable and cost-effective door-to-door package for retailers and manufacturers. Because a large proportion of door-to-door moves are packaged by IMCs, we believe this shift will be more convenient for our IMC customers and will best support the future growth of our cartage operations."

Orris added that PGL, itself an intermodal marketing company, will become a customer of the Pacer Cartage operation, as well, so access to local trucking services will remain seamless for retail customers.

Pacer Cartage will continue to be managed by the president of the cartage unit, Bob Arovas, and will report to Tom Shurstad, president of Pacer Stacktrain.

Pacer's Cartage Network

"The cartage capability of the company currently consists of more than 600 trucks that are predominantly owner-operator units," said Shurstad. He added that the network provides in excess of 300,000 local moves annually, and operates from terminals in 17 cities.

These cartage hubs include City of Industry, Lathrop, Los Angeles, Oakland, and Rancho Dominguez, California; Houston, Texas; Jacksonville, Florida; Chicago, Illinois; Columbus and Marysville, Ohio; Memphis, Tennessee; Kansas City, Kansas; Charleston, South Carolina; Portland, Oregon; and Atlanta, Savannah, and Dalton, Georgia. Other hubs are currently planned.

Additionally, through another business unit known as Conex, Pacer also provides cartage services in San Diego, California and Seattle, Washington.

Pacer's cartage operations will continue to be controlled through a stand-alone operating system to ensure efficient and reliable dispatching and realtime monitoring of harbor and railroad drayage operations, LTL (less-than-trailorload) services, landbridge services (between a pier and a rail ramp), cross-dock operations, and container-yard services, according to Arovas.

Pacer's retail division, Pacer Global Logistics, will continue to offer other types of trucking services as part of its service menu, including flatbed and specialized heavy-haul trucking, as well as full-load, regional, and local van trucking.

ABOUT "CARTAGE" -- Cartage, which is an integral part of the freight distribution process and is also called "drayage," refers to the local pickup and delivery of freight by truck. It may involve transfer to or from a port or a railhead, or from a freight-handling facility to a retail outlet or other customer destination.

ABOUT PACER -- Pacer International, a leading non-asset based North American third-party logistics and freight transportation provider, offers a broad array of logistics and other services to facilitate the movement of freight from origin to destination. Its services include wholesale stacktrain services (cost-efficient, two-tiered rail transportation for containerized shipments) and cartage (local trucking), and retail intermodal marketing, trucking, warehousing and distribution, international freight forwarding, and supply-chain management services. Pacer International is headquartered in Concord, California. Its business units Pacer Stacktrain and Pacer Global Logistics are headquartered in Concord, California, and in Dublin, Ohio, respectively. Web site: www.pacer-international.com.

ABOUT PACER STACKTRAIN -- Pacer Stacktrain is part of Pacer International, Inc., a leading North American freight transportation and logistics services provider based in Concord, California. Pacer Stacktrain offers a highly efficient rail network for the distribution of containerized freight by maintaining long-term contracts with major North American railroads and operating an extensive fleet of special railcars that accommodate containers stacked two-high. The coast-to-coast network spans some 50,000 miles of track, including both Canada and Mexico, making it the most extensive network in the marketplace. Transportation services are marketed on a wholesale basis through intermodal marketing companies and other third parties. Web site: www.pacerstack.com

Note to editors: Issued by Steve Potash and Company, 510/865-0800, steve@potashco.com
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Publication:Business Wire
Geographic Code:1USA
Date:Sep 16, 2003
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