CTOO C2 (MM)

C2, Inc. to Purchase Packaging Business From Kellogg Company Subsidiary, Keebler MILWAUKEE, Feb. 13 /PRNewswire-FirstCall/ -- C2, Inc. announced today its subsidiary, Total Logistic Control (TLC), agreed to acquire the Athens Re-packing business and assets owned by Keebler Company, a subsidiary of Kellogg Company. Terms of the agreement were not disclosed, however the acquisition is expected to be completed in April 2004. The 225,000 square foot facility is located in Statham, Georgia and was built in 2001. It is a full-service operation providing packaging design, packaging operations, logistics and warehousing services, along with technical and engineering support. This business offers significant capabilities, including shrink wrapping, horizontal flow wrapping, cartoning, point of purchase displays, club store packs, variety packs, bag in box, lunch kits labeling and specialty projects. This business was acquired by Kellogg Company in 2001 as a part of its purchase of Keebler Foods. William T. Donovan, C2 President and CEO, said, "This acquisition expands TLC's end-to-end supply chain management services and increases our presence in the Southeast. This facility and its capabilities in secondary packaging will provide TLC with a new platform for growth, not only serving Kellogg's continuing needs, but also in attracting new customers to a first-class packaging and logistics service operation. TLC recently hosted a packaging conference to explore strategic opportunities in providing fully integrated logistics and packaging services. The strategic opportunities were well received by major U.S. food and beverage producers and this acquisition will give us the ability to execute this strategy." "This sale enables Kellogg Company to more sharply focus our resources on core manufacturing operations, while also enhancing the long-term business potential of the Athens operations. We are pleased that as a part of this agreement, many of our products will continue to be re-packedunder TLC's management," said Tim Goaley, Senior Vice President Operations, Kellogg's Snacks Division. C2, Inc. is a Milwaukee-based public company with two operating businesses, Total Logistic Control and Zero Zone. Total Logistic Control TLC, based in Zeeland, Michigan, is a national provider of integrated logistic services which include refrigerated and dry warehousing, transportation operations, supply chain management, dedicated third-party facility and operations management, food distribution, bottling and packaging and fulfillment services. Operations are conducted through a national network of 39 logistic centers with 36.3 million cubic feet of refrigerated capacity and over 3 million square feet of dry warehouse space making it the tenth largest provider of refrigerated warehousing services in the United States. TLC operates a fleet of over 450 tractors with over 750 refrigerated and dry trailers with 3 maintenance facilities. TLC was recently cited by Inbound Logistics as a Top 10 Provider of Third Party Logistics Excellence for the sixth year in a row. TLC is a wholly-owned subsidiary of C2, Inc. More information about TLC is available at http://www.totallogistic.com/ . Zero Zone Zero Zone, headquartered in North Prairie, Wisconsin is a manufacturer of refrigerated and freezer display cases used in grocery, convenience and drug store chains for retail merchandising of food, beverage and floral products. In 2002, Zero Zone acquired Zero Zone Refrigeration which manufactures refrigeration houses and racks to power and control the refrigeration systems, electrical panels, and stand-by power for supermarkets, convenience stores and industrial applications. Zero Zone is a wholly-owned subsidiary of C2, Inc. More information about Zero Zone is available at http://www.zero-zone.com/ . Kellogg With 2003 sales of nearly $9 billion, Kellogg Company is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts and ice cream cones. The Company's brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Murray, Austin, Morningstar Farms, Famous Amos, Carr's, Plantation, Ready Crust, and Kashi. Kellogg products are manufactured in 17 countries and marketed in more than 180 countries around the world. For more information, visit Kellogg's website at http://www.kelloggcompany.com/ . Website: http://www.totallogistic.com http://www.zero-zone.com http://www.kelloggcompany.com DATASOURCE: C2, Inc. CONTACT: William T. Donovan, President and CEO of C2, Inc., +1-414-291-9000

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