Acquisition

RNS Number:7525N
Exel PLC
21 July 2003


          EXEL ACQUIRES BRAZIL'S LEADING HEALTHCARE LOGISTICS BUSINESS

  Acquisition of Unidock's extends Exel's healthcare presence in South America

(London, UK, 21 July 2003) - Exel, the global leader in supply chain management,
announced today that it is acquiring Unidock's, the leading pharmaceutical
logistics provider in Brazil. The acquisition fits with the Group's strategy of
strengthening its global coverage by extending Exel's multi-user pharmaceutical
presence in the South American market.

Exel will be acquiring all of Unidock's operations in Brazil which provide
shared-user warehousing and distribution to the majority of the pharmaceutical
companies that currently outsource logistics in the region.

Exel's healthcare operations have grown rapidly over the last few years, driven
by the development of a range of integrated logistics solutions, particularly in
pharmaceuticals and medical devices. Since 2000, the Group has successfully
extended its healthcare services into South East Asia, Australia and New
Zealand, as well as growing existing activities in the UK, Continental Europe
and the Americas.

The acquisition of Unidock's establishes a healthcare position for Exel within
South America. With Brazilian operations in Sao Paulo and Rio de Janeiro,
Unidock's provides a wide range of logistics services including inbound
transportation, storage, labelling, pick and pack, and outbound transportation
to the final customer. With over 250 employees, Unidock's has been operating in
Brazil since 1994 and today works with over 20 key healthcare customers.

Combining Unidock's established operations in Brazil with Exel's broader global
logistics capability will provide the Group with a competitively advantaged
product offering. The integrated solution will address customers' requirements
for linking transportation of imported raw materials with warehousing through to
distribution of finished products.

In addition, serving a significant number of customers in an increasing number
of countries allows Exel to provide global consistency of processes and to
transfer best practices across the Group.

"Brazil is the fifth largest country in the world and has a healthcare market
with tremendous growth potential," explains Graham Inglis, President, Healthcare
Worldwide at Exel. "The acquisition of Unidock's extends our healthcare
capabilities, allowing us to provide Exel's current customers with services in a
new geography, and Unidock's customers with a broader range of logistics
services."


John Allan, Chief Executive of Exel plc, added: "Exel's supply chain expertise
and global scope will be enhanced by the addition of Unidock's in Brazil. South
America is a major region for development over the next few years and this
acquisition will expand our business in Brazil by nearly 50%. It will also
enable us to develop stronger relationships with key healthcare and consumer
customers." In Brazil, Exel currently operates a network of distribution
facilities for the consumer market and is a lead provider of logistics services
for automotive Original Equipment Manufacturers (OEMs).

Domingos Fonseca, Partner, Unidock's, who will be staying on to work with Exel
said: "Since we started in 1994, Unidock's has rapidly expanded its business to
become the leading pharmaceutical logistics provider in Brazil. However, to
develop further, in what is an increasingly global marketplace, we need the
additional services and strength of broader customer relationships developed by
Exel.


"This development has the full support of senior managers and Board members. The
senior management team views this as a very positive step for Unidock's and,
together with our customers we are looking forward to benefiting from being part
of Exel's global organisation."

Exel will be acquiring assets worth #1.5m (as at 31 December, 2002) and the
consideration will be settled in cash from existing resources. The Group expects
the acquisition to be earnings enhancing, after goodwill.

Exel's commitment to global development of the Healthcare sector was further
illustrated, last month with the acquisition of Transbeynak in Turkey. This
acquisition gives Exel strategic presence in the increasingly important European
pharmaceutical market and enhances Exel's existing activity serving the Turkish
retail and consumer markets. Through this healthcare platform Exel will
introduce integrated supply chain solutions to many of the multinational
pharmaceutical manufacturers, operating from this geography, as well as regional
distribution solutions.

                                     -ends-

For more information, please contact:

Exel plc

John Dawson, Director of Corporate Affairs                       [phone]
Rebecca Salt, Head of Group PR & Marketing                       [phone]

The Maitland Consultancy

Brian Hudspith / Lydia Pretzlik                                  [phone]

Exel Press Office

Nicola Pitt / Emily Goehler                                      [phone]


Notes to Editors

About Exel

Exel is the global leader in supply chain management, providing customer-focused
solutions to a wide range of manufacturing and retail industries. Exel's
comprehensive range of innovative logistics solutions encompasses the complete
supply chain from design and consulting through freight forwarding, warehousing
and distribution services to integrated information management and e-commerce
support.

Exel, a UK listed, FTSE 100 company, has turnover of #4.7 billion (over US$7
billion) and employs around 67,000 people in 1,600 locations in over 120
countries worldwide. Exel's customers include over two thirds of the world's
largest, quoted non-financial companies. More information is available at
www.exel.com.


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