EXEL CONFIRMS GOOD THIRD QUARTER TRADING                    

(London, UK, 28 October, 2003) Exel plc, the global leader in supply chain
solutions, today confirmed that trading through the third quarter had been
good, in line with internal forecasts. The Group also confirmed that it is on
track to meet full year market expectations.

Commenting ahead of shareholder meetings in the US and Japan, Chief Executive,
John Allan said "Progress in 2003 has confirmed the strength of our customer
focused strategy which has been rewarded with good new business wins and a
strong rate of contract renewals. Cash generation has also been good and we
remain confident that the Group will meet market expectations for solid trading
progress in 2003."

During the first three quarters of the year, Exel has secured new contract wins
totalling over �560m of annualised revenues (over �500m in the same period last
year). During the third quarter Exel successfully took over operation of six of
Marks & Spencer's 10 general merchandise warehouses across the UK, as part of
the five-year contract won in the first half. In addition the Group secured
major contract gains with UK retailer House of Fraser, consumer products
company Burton's Foods, US retailer The Home Depot and Legend, the leading
manufacturer of PC products in China as well as further new operations with
Goodyear in the US where Exel is the Lead Logistics Provider.

"Our pipeline of new opportunities remains very healthy," added John Allan. "We
have also continued to invest in our business, in particular strengthening our
healthcare activities with the acquisition of Transbeynak in Turkey and
Unidock's in Brazil. Exel's recent acquisition of Power's retail and consumer
operations in the UK has made good progress including successfully
commissioning a major new automated facility for a leading consumer products
manufacturer."

Performance at Exel's contract logistics operations remained strong, with all
major regions making good progress over the previous year. In particular the
strong first half result generated by Exel's US operations continued into the
second half and, as expected, the Group further improved performance in the UK
and Ireland and Asia Pacific. European operations continued to make steady
progress.

Freight management activities remain mixed. Good volumes in Asia Pacific
sustained modest growth and there was an improvement in performance in European
activities. As expected third quarter trading in Exel's US freight management
operations remained subdued, largely due to a challenging domestic market and
weak demand for international export freight.

John Allan concluded: "Exel's strategy and competitive advantage continues to
generate profitable revenue growth. Investment in new systems capabilities and
enhanced business processes are contributing to Exel's delivery of superior
operational excellence. As a result we are confident that, despite the slow
pace of global economic recovery and the continued weakness of the US Dollar
Exel is well positioned to deliver good growth in the future."

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For more information, please contact:

John Dawson, Director of Corporate Affairs

Exel plc

+44 (0) 1344 744409

Martin Leeburn or Lydia Pretzlik

The Maitland Consultancy

+44 (0) 207 379 5151



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