Exel confirms good third quarter trading 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." -ends- 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 END

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