Menlo Worldwide Completes Acquisition of Shanghai-Based 3PL Chic Holdings Ltd.
Latitude Capital Group Acted as the Financial Advisor to Menlo on the Transaction
2007-10-18

US$60 Million Deal Sets Foundation for Growth in Intra-China Warehousing, Distribution, Transportation Management

SAN MATEO, Calif., and SHANGHAI, China - Oct. 18, 2007 - Menlo Worldwide, LLC, the global logistics subsidiary of Con-way Inc. (NYSE: CNW) announced today that it had completed the acquisition of Shanghai-based Chic Holdings Ltd., a corporation registered in the Cayman Islands, and its wholly owned subsidiaries Shanghai Chic Logistics Co. Ltd. and Shanghai Chic Supply Chain Management Co. Ltd. Under the transaction, Menlo acquired Chic Holdings and all of its assets and subsidiaries for US$60 million, plus future undisclosed earn-out incentives based on performance.

The acquisition of Chic Logistics, which had US$55.2 million in revenues for 2006, dramatically expands Menlo's operating footprint and service capabilities in China. Menlo gains an established logistics network with over 1,500 employees working from 130 operating sites in 78 cities, providing a wide range of domestic third-party warehousing, logistics and transportation management services throughout the country.

"We're very pleased to welcome Chic Logistics to Menlo and excited about the tremendous foundation for growth and market expansion this platform brings to us in China," said Robert L. Bianco Jr., president, Menlo Worldwide. "The skilled workforce and strong management of Chic Logistics are excellent resources with proven expertise in inland China transportation and logistics. Our customers are already inquiring about how they can leverage this acquisition to benefit their domestic China distribution needs as well as their global supply chain operations."

"China's domestic market continues to experience rapid growth, which leads to opportunities but also presents new challenges and complexities," said Johnson Shen, CEO, Chic Logistics. “Our customers, who have benefited from Chic Logistics' excellent network and service throughout China, now will also have access to additional resources through the impressive global platform of Menlo. This acquisition provides great support for our employees and customers. We will be able to achieve faster growth in the domestic China market while expanding to offer our customers proven international coverage via Menlo's global network."

The Chic acquisition complements Menlo's existing presence in China, where the company has had operations for nearly a decade. It was the second acquisition for Menlo in Asia this year. The company previously completed the purchase of Cougar Holdings Pte Ltd., a leading 3PL with operations in Singapore, Malaysia and Thailand. Combined, the two acquisitions fulfill a strategic expansion plan for Menlo which extends its Asia-Pacific network with complementary capabilities while establishing a solid foothold for domestic distribution in China.

Integration activities are underway as are sales initiatives to pursue business expansion opportunities with current customers as well as new projects for new clients. The acquisition was funded using existing cash resources and is expected to be accretive to the earnings of Con-way Inc., Menlo Worldwide's parent company, beginning in 2008.

About Chic Logistics

Chic Logistics and Chic Supply Chain Management have offices and operations throughout China's provinces and specialize in one-stop logistics services, from local distribution services, regional distribution services and home delivery services through a complete and modern nationwide supply chain service. Fortune 500 companies around the world look to Chic Logistics for innovative solutions that help plan business strategies in China, improve customer service, accelerate order cycle times, and tighten control of the supply chain-all while reducing costs in transportation, inventory, and order fulfillment. For more information, please visit us on the Web at http://www.logistics-chic.com/en/index.htm.

About Menlo Worldwide

Menlo Worldwide, LLC, is a global provider of logistics, transportation management and supply chain services with operations in North America and on five continents. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide's services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain re-engineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 13 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.7 billion freight transportation and logistics company and FORTUNE magazine's "Most Admired Company" in transportation and logistics for 2007. For more information please visit us on the web at www.menloworldwide.com.

Source: Menlo Worldwide, LLC