EXEL AND MARKS & SPENCER ANNOUNCE                       

                      MAJOR NEW SUPPLY CHAIN PARTNERSHIP                       

(London, UK - 27 March, 2003) Marks & Spencer, one of the UK's leading
retailers has today announced, that following a year long review of logistics
operations, Exel, the world leader in supply chain solutions, has been awarded
the management of seven of the retailers' 11 general merchandise warehouses
across the UK on a five-year contract.

This new contract highlights the growing, strategic importance of the supply
chain for major companies such as Marks & Spencer. Expected benefits include
superior focus on customer service and improved distribution processes and
network systems. By working with Exel across much of the network, Marks &
Spencer will be better placed to respond to marketplace changes quickly and
effectively, maintaining a high level of service to customers.

Marks & Spencer and Exel will be working together to co-ordinate this new
approach to maximise time and cost benefits.

Perry Watts, Managing Director for Retail and Consumer, Non-food at Exel, has
led the project team: "We have worked in partnership with Marks & Spencer for
over 35 years and are thrilled to have been awarded this contract, which
represents a major extension of our existing business with Marks & Spencer. The
process of selection has enabled us to work closely with the team at Marks &
Spencer and our mission over the next five years is to deliver an
industry-leading approach that improves customer satisfaction throughout the
national supply chain network."

Simon Ratcliffe, Head of Logistics at Marks & Spencer, comments: "The
announcement of this award marks the culmination of a comprehensive review to
redefine our UK general merchandise. This new approach will enable us to
maximise all the operational and cost benefits of a nationally co-ordinated
supply chain and ensure that all parties are benefiting from the creation of
value."

Exel currently manages the Enfield distribution centre for Marks & Spencer and
will add six further sites. Around 1,800 staff will transfer under Transfer of
Undertakings and Protection of Employment (TUPE) to Exel's employment in the
coming months and it is anticipated that by early autumn, 2003, all sites will
have transferred to Exel's management.

This contract supports a wider range of activity that Exel carries out across
Marks & Spencer's entire supply chain including; international inbound,
in-store logistics, home delivery with Exel designed systems, warehousing
services for Zip and managed transport services and warehousing and value add
services for Outlet Stores through Joint Retail Logistics.

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For more information, please contact:

Exel plc

John Dawson, Director of Corporate Affairs
+44 7733 301986

Rebecca Salt, Head of Group PR & Marketing
+44 7774 679739

The Maitland Consultancy

Brian Hudspith / Lydia Pretzlik
+44 20 7379 5151

Exel Press Office

Nicola Pitt/ Emily Goehler
+44 1908 244011



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