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AEI Acquires Direct Line Cargo Management Services, Boosting Service To U.S. Import Market

DARIEN, CT USA (October 18, 1999) -- AEI announced today that it has acquired the business and certain assets of the CMS group of companies (CMS), including New Jersey-based Direct Line Cargo Management Services, Inc., Hong Kong-based Advanced Cargo Management Services Ltd., and other CMS group companies throughout Asia. Terms of the transaction were not disclosed.

Founded in 1983, CMS is a leader in international cargo consolidation services in the Trans-Pacific trades, specializing in purchase order management and consolidation services primarily for United States-based retailers and manufacturers of retail products working with multiple vendors throughout Asia. Its customers include a number of major retailers and footwear and apparel manufacturers. AEI plans to continue to operate CMS as a separate division under the name, AEI Cargo Management Services.

“The two companies complement each other exceptionally well,” said Guenter Rohrmann, AEI’s president and CEO. “AEI’s import customers will benefit from CMS’ specialized expertise in purchase order management and vendor consolidation. Conversely, CMS will leverage AEI’s unmatched transportation, brokerage and distribution capabilities to deliver a broad range of services to its customers.”

Rohrmann said the CMS acquisition is expected to build substantial value in the U.S. consignee market by strengthening AEI’s portfolio of import services. He noted that the consignee drives by far the majority of all logistics-buying decisions worldwide.

“The combination will enhance the ability of our import customers to perform global sourcing, which is a critical factor in global competitiveness,” Rohrmann said. “Bringing CMS into the AEI family strengthens our import product line and broadens our service offerings to the consignee community.”

“For CMS customers, especially mid-size businesses who sole-source their supply-chain management to us, we will be able to combine our regional know-how and specialized management expertise with AEI’s global infrastructure,” said George McKenzie, president of Direct Line Cargo Management Services. “We will therefore be able to deliver a superior product at each step along the way.“

CMS does not operate as a forwarder or as a non-vessel-operating common carrier (NVOCC). Instead, it books customers’ freight with ocean carriers, NVOCCs or with forwarders such as AEI. CMS arranges shipment bookings and provides cargo and document handling services, including bar code scanning at origin for its customers, delivering real-time shipment tracking information through Log-Net®, its web-based purchase order and shipment tracking system.

AEI’s web-based transportation and customs brokerage applications will be integrated with Log-Net, enabling customers to track purchase orders seamlessly from their receipt at origin through customs processing and release at ports-of-entry, to delivery at their final destination.

“Logistics providers face increasing pressure to expand the scope of their services,” Rohrmann said. “We believe that our purchase of CMS, and the creation of a complementary service and operational structure is an innovative way for our companies to add value for multi-national importers and gain share in the integrated logistics market.”

Headquartered in Darien, CT, AEI is a world leader in integrated logistics services, delivering multi-modal transportation, warehousing and distribution, customs brokerage, consulting and information management solutions across a global network of 705 locations in 135 countries.

For further information please contact:
Jay Jacobson
Investor Relations
Tel:(203)655-6978
exojxj@aeilogis.com

Candace Bouchard
Fax: (203) 655-5895
exocb@aeilogis.com