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Air Express International (AEI) Reports Third Quarter 1999 Results

DARIEN, CT USA (November 1, 1999) -- AEI, today announced results for its third quarter ended September 30, 1999.

AEI reported third quarter diluted earnings per share of 38 cents, the same as last year. Third quarter net income was $12,787,000 versus 1998 third quarter net income of $13,010,000. For the nine months ended September 30, 1999, AEI reported net income of $39,120,000 and diluted earnings of $1.15 per share, which included a gain on the sale of marketable securities of $4,908,000, or 14 cents per diluted share. Excluding the above-mentioned gain, net income for the first nine months of 1999 was $34,212,000, or $1.01 per diluted share, compared to 1998 net income of $36,401,000, or $1.04 per diluted share.

Gross revenues for the third quarter increased nine percent to $407,538,000 versus $372,961,000 for last year's third quarter. Revenues for all services reflect increased volumes over the third quarter of last year with ocean freight revenues posting a 25 percent increase to $65,471,000. Customs brokerage and other revenues increased 13 percent to $43,063,000. Airfreight revenues grew six percent to $299,004,000 on increased shipping volumes. This is the first time since the first quarter of 1998 that the Company reported positive airfreight revenue comparisons.

For the third quarter of 1999, net revenues increased seven percent to $132,972,000 and operating profit increased three percent to $19,092,000.

For the first nine months of 1999, gross revenues were $1,135,485,000, slightly higher than the first nine months of 1998 of $1,123,831,000. The major contributors to this improvement were a 16 percent increase in ocean freight revenues and a nine percent increase in customs brokerage and other revenues. Airfreight revenues for the first nine months were $843,427,000, a three percent decline, all of which occurred in the first half of 1999, compared to $865,186,000 for the same period of last year.

Net revenues for the nine months ended September 30, 1999 increased four percent to $379,995,000. Operating profit for the first nine months was $49,741,000, a decline of three percent from 1998 due to lower operating results from European operations.

In commenting on the results, Guenter Rohrmann, AEI's President and Chief Executive Officer, stated, "Our results for the third quarter reflect the anticipated improvement in our airfreight business. Compared to last year's third quarter, improved airfreight revenues were posted by all regions. Our ocean freight and customs brokerage business continued to perform well, and we anticipate ongoing improvement in our business for the remainder of the year."

Rohrmann continued, "The Company has for more than a year been reviewing strategic alternatives. In that connection the Company has had and continues to have discussions with third parties concerning possible transactions. To date none of these discussions has resulted in a definitive agreement. The Company does not intend to make any further comment on this situation unless a definitive agreement is entered into. No assurances can be given that any such definitive agreement will be reached."

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