FOR IMMEDIATE RELEASE

Is Bigger Better? - 3PL Financial Results - 2005

STOUGHTON, Wis., Third-party logistics U.S. revenues broke $100 billion for the first time in 2005. 3PL gross revenues hit $103.7 billion, a 16% increase. EBIT margins improved to 9.3%. The margin for after-tax income was 5.6%. Domestic Transportation Management (DTM), including freight brokerage, lead third-party logistics segments with an 18.3% gain in net revenues (gross margin). Gross revenues (turnover) were $30.3 billion. C.H. Robinson, Landstar, Meridian IQ and Schneider Logistics all grew 30% or more. After-tax profitability for DTM exceeded 12%. Robinson's net revenue was $880 million. Net income was $203 million.

Revenues and Profitability by Segment - 2005

(1) Total turnover for the 3PL industry in the U.S. is estimated at $103.7 billion. $3 billion is included for the logistics software segment.

Continued growth in global economic activity and increased supply chain management produced substantial increases in International Transportation Management (ITM), including freight forwarding. Gross revenue increased to $38.2 billion. Net revenue increased 13.6% to $14 billion. Industry leaders in this segment were Expeditors International, Kuehne + Nagel and UTi. All three companies had net profitabilities in ITM.

Tight trucking industry capacity made for another good year in asset-based domestic transportation management (Dedicated Contract Carriage, DCC). Growth of 10.2% was double-digit for the second straight year after several years of limited expansion. J.B. Hunt, Werner and Cardinal were again the leaders in this segment.

Value-Added Warehousing/Distribution (VAWD) expanded to $22.3 billion with 9.5% growth. UTi Contract Logistics grew 37.5% and improved its net revenue margin to 7.9%. Cat Logistics grew 20.7% to $1.4 billion in net revenue with a net margin of 9.5%. After-tax profit margins in this segment improved to 4% as industry leaders were more inclined to cull unprofitable business.

The complete report for 2005 can be obtained by contacting Armstrong & Associates. Armstrong & Associates' Extended Information Service subscribers will receive the report next week.

The report can be purchased over the phone or online at: http://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions, supply chain systems benchmarking, and logistics outsourcing. Armstrong & Associates publishes Who’s Who in Logistics?. Recent research papers include: "An Overview of Warehousing in North America - Market Size, Major 3PLs, Benchmarking Prices and Practices" and "Trends in Third-Party Logistics Provider Supply Chain Systems Purchasing, Deployment and Use". In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: (800) 525-3915 or e-mail armstrong@3PLogistics.com.

Armstrong & Associates, Inc.

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Suite 202

Stoughton, WI 53589

Phone: (608) 873-8929 Fax: (608) 873-5509

Website: www.3PLogistics.com

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