Exel aquires Pharma Logistics Group

    EXEL ACQUIRES PHARMA LOGISTICS GROUP -                     

                         A LEADING EUROPEAN HEALTHCARE                         

                              LOGISTICS BUSINESS                               

(London, UK - 15 January 2004) - Exel, the global leader in supply chain
management, has announced today that it has acquired the Pharma Logistics Group
and its related operations. Based in Italy and Belgium, Pharma Logistics has
established a successful business with key multinational pharmaceutical and
healthcare customers. The acquisition builds on Exel's successful growth
strategy and provides further strengths in Continental European operations.

Exel's growth strategy is built around establishing world leading positions in
selected industry sectors. This customer and market focus allows Exel to
provide industry leading expertise and develop effective supply chain solutions
for its clients. Healthcare is one of Exel's core sectors and over the last few
years has experienced significant market growth as customers look to maximise
the benefit of fast, efficient and secure supply chains.

Exel has established a leading, global healthcare business through organic
growth and selected strategic acquisitions. This included Brazilian business
Unidock's and Turkish logistics operator, Transbeynak, both acquired in 2003
and the Total Logistics Company headquartered in Australasia, bought in 2001.

Through its own development Pharma Logistics has expanded from its Italian
roots to create a broader pan-European service, with nine facilities involving
over 350 people. Customers include leading pharmaceutical and healthcare
companies who have used the business to provide comprehensive distribution
solutions.

Exel expects to accelerate the development of the business through enhancing
revenue growth opportunities with its existing customers and developing broader
capabilities in Pharma Logistics' existing markets.

Exel will be acquiring the business for an undisclosed consideration, part
deferred, payable in cash from existing resources. Net tangible assets as at 31
December 2002 were Euro5m (£3m). The acquisition is expected to be earnings
enhancing in its first full year, before goodwill and related charges.

John Allan, Chief Executive of Exel, commented: "The acquisition of Pharma
Logistics marks another significant milestone in the development of our global
healthcare business. Building on the success of our Americas, UK and Northern
European operations and combined with recent acquisitions in Asia, Brazil and
Turkey, Pharma Logistics will accelerate our growth opportunities across
continental Europe. The acquisition brings with it a strong management team who
will complement our existing capabilities and help support growth in the
region. Completed towards the end of 2003, Pharma Logistics brings our total
spend on acquisitions to over £100m last year."

Eddy de Vita, Managing Director of Pharma Logistics, commented: "I and the
Pharma Logistics' team very much welcome this opportunity to join the Exel
family, and help to establish Exel as the `number one' global Healthcare
logistics service provider. This development is also welcomed by our customers,
who will benefit from our new scale, geographical reach and expanded range of
services."

                                    -ends-                                     

For further information contact:

For Exel:

John Allan, Chief Executive

John Dawson, Corporate Affairs

[phone]

[phone]

The Maitland Consultancy:

Martin Leeburn

[phone]



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