Exel Specialized Logistics“What we do changes your world”

Dave ZychDirector May 23, 2007

Supply chains and why they have become so important…

“When the world is flat, your company both can and must take advantage of the best producers at the lowest prices anywhere they can be found. If you don’t, your competitors will. So global supply chains—that draw products from every corner of the world—have become essential. That is the good news. The bad news is that making these chains work is much harder than it looks and requires constant innovation and adjustment.”

--The World is Flat by Thomas L. Friedman

The Customers Exel Specialized Logistics Serve

Hotels – FF&E shipping, warehousing & installation Retailers – Store fixture shipping, warehousing &

installation Restaurants – Dining and kitchen equipment package

shipping, warehousing & installation Assisted Living – FF&E shipping, warehousing &

installation Casinos, Resorts, Stadiums & Institutions – Shipping,

warehousing & installation

What we actually do…

Ship – Make certain that the manufacturer ships the goods in time to meet the facility opening deadline.

Warehouse – Control inbound/outbound shipping and inventory. Stage interior packages and deliver to the construction site for timely installation.

Installation – Set and fix items in place according to a predetermined schedule and detailed work diagrams.

We essentially manage the portion of the client project that involves furniture, fixtures and equipment shipping, storage and placement (also known as final mile services). We are an outsource the customer can use in place of their own full or part time personnel resources.

What we DO NOT do…

Move general commodities or raw materials Provide supplies or provision support Install items that require hard wired electrical, plumbing

or other trade work Construct or fabricate during installation Move used commodities or household goods Handle small package shipments Provide long-term warehousing & fulfillment programs

How we do what we do…

Ship with outside carriers. We have strong long term relationships with LTL, TL, inter-modal, air and ocean carriers.

Warehouse using independent, Exel and various van line warehouses. Our relationships and buying power in the market place serves for favorable pricing and service.

Installation is by proven contracted vendors. We have some of our own assets, but customer

requirements may dictate use of outside sources.

We use other people’s assets to service our clients needs in the most efficient cost-effective manner.

Why use our services?

We provide expertise that removes the burden of a client whose core competency is in another field of having to recruit and hire employees for this function.

Our sole business is logistics as it relates these clients’ growth and expansion programs.

We provide leverage purchasing with carriers, warehouses and installation vendors.

Seasonal fluctuations and occasional programs provide an advantage to use ‘experts’ to coordinate expansion and rapid growth programs.

How we operate as a Third Party Logistics (3PL) firm to provide solutions to clients building/renovating restaurants, retail stores, hotels, casinos, assisted living and condominiums.

Provide the carrier and logistics vendor relationships that are best suited and create the greatest advantage to the client.

Manage the entire scope of logistics. Understand the opening schedule and build transits

and/or warehousing programs that will meet deadlines. Install and manage the FF&E inventory. Communicate with the client. Seek the lowest cost solution.

Global CoverageIt is essential to have and/or understand the infrastructure to leverage the supply chain for worldwide business growth. We no longer operate a local, regional or even national economy.

North America

Latin/Central America

Emerging MarketsAsia Pacific

Europe incl. Eastern European Countries

Global Optimization

It doesn’t matter if you can get product at a lower cost in various parts of the world. The key is that the total cost of delivering all your product on time from all four corners of the globe has to be low, and certainly lower than those of your competitors. A transportation or logistics manager of a firm seeks to do business with the lowest priced carrier. However, the project manager wants to do business with the most reliable carrier. The lowest cost carrier may not provide the most reliable service. Matching demand, construction schedules and service is a craft requiring skilled tenured professionals and a reputable experienced logistics provider.

Expertise Needed – The kind of job positions required operate a business unit handling expansion programs for retail, hospitality & foodservice

Clerical – Basic PC skills (Word, Excel, Power Point, etc). Customer Service – Communicating clearly and effectively with

shippers, vendors and clients. Operations – Industry knowledge and experience. Project Managers – Oversea and control complex logistics

projects Management – Controlling assets, people and managing costs.

Prudent decision skills and industry knowledge. Sales – Industry knowledge, sales experience and relationship

building.

Additional Staffing (Career Opportunities)

IT professionals Cargo claims administrators Risk management professionals HR Accounting Revenue processing Business managementAll of these positions will require some knowledge of either

warehousing, transportation and logistics processes.

Providing solutions for complex logistics challenges…

Project Management – A tenured, experienced project manager is assigned to the project.

Construct a Solution – Our team of logistics professionals construct a plan to execute the client’s project.

Operate – We execute based on the scope of work, timeline and obstacles.

Create – Customize a solution for situations at projects requiring special handling, environment conditions, legal restrictions, etc.

Hospitality & Retail Projects Managed by a World Class Logistics Firm – Additional Detail About How the Customer Benefits

Global expertise Worldwide team with local knowledge All-around service from a single source with punctual delivery Regional warehouses (near project sites) Service quality & consistency Efficient transactions using the global network Full transparency with online Tracking and Tracing Flexibility Accountability Combination with all modes of transportation Optimal price estimates Competitive rates for your projects Stable financial worldwide supply chain services company

Value Added Services – Security & Liability

We provide expertise and consultancy in all security-related questions for our customers

We provide $10 million ALL RISK insurance for our domestic warehouses at no additional charge

We manage security issues proactively and provide effective investigation as necessary through the whole supply chain

We manage and administrate carrier & warehouse cargo claims

Rapid expansion projects involving renovating multiple facilities or properties simultaneously.

High velocity rollouts to multiple sites of fixtures, equipment or furnishings.

Installation of furnishings, fixtures & equipment in renovated or new build facilities.

Short term storage of FF&E during construction. Managing FF&E inventories during construction.

Specialized Delivery Services Division of Exel Transportation ServicesWe are a very large company that can assist major clients with projects involving…

Specialized Services Network (Domestic U.S.)Our warehouse & final mile delivery network has facilities usually within 30 miles of client projects

Warehousing & Distribution (Long & Short-Term)

Professional on site management and inventory control

Recycling coordination Logistical control of highway and

inter-modal shipment In-house assembly, installation and

removal of old FF&E

De-vanning Services Timely inventory reporting and

tracking via web enabled WMS Long and short-term storage Repack and kit assembly services Master pack design & creation

Specialized Logistics Domestic (U.S., Canada & Caribbean) – Projects Requiring Staging Warehouses Near Construction/Renovation Sites

Warehouses located in the same city as the property with the capability to handle and store specialized high value furniture, fixtures and equipment (usually within a 30-mile radius). Local deliveries with specialized equipment such as lift gate trucks, pads, dollies, etc. Inside placement, debris removal and FF&E installation (including flooring, window treatments & wall coverings). All risk insurance liability. Online inventory. Project management

Specialized Logistics – Project Flow for New Construction/Renovation

Final MileDelivery

Specialized Services:* I nside Placement* Debris Removal* Assembly* I nstallation

Client

Warehouse

Exel ProjectManager

Hospitality/Assisted Living Renovations & Upgrades

StagingWarehouse

Near Property

Direct delivery toProperty

Client PropertyRenovation

(Single or MultipleLocation)

Transportation ofProduct fromDomestic orI nternational

Vendors

Exel ProjectManager

I nstallation or FinalMile Services

Model Home & Condominium Projects

Delivery to Site with LaborAssist Client Design Team

with I nstallation

Client with Single orMultiple Model Homes or

Condominiums

Transportation ofFurnishings fromI nternational or

Domestic Vendors

Exel ProjectManager

Live Process Example

The following four slides are actual notes from a post client meeting of the logistics professionals designing a solution for a major convenience chain store opening. The client is opening and remodeling hundreds of stores in various regions of the continental United States. Their logistics challenges handled by their internal resources are slowing down the expansion program. They brought our team in to analyze the process and potentially take over the logistics.

Retailer ProvidesTo ESL Ops Contact

Vendor Contact Data& Authority to Act asTransportation Mgr

ESL ShipsProduct to

Regional Sites

Staging Warehouse 0-75

mi. Radius of StoreSite Cluster

Inventory Control &Visibility

Kit Equipment &CommoditiesBy Store Type

Deliver Kits to StoresDriven by Date &

Install Process

CompletedStore

A plan for a multi store rollout (actual notes from a post client operational discussion).

ValueRisk Management – Claim ControlVelocity – Multiple Store Openings SimultaneouslyVisibility – Inventory ControlModeling of Process – Standard Logistics SOPsCost ControlReduced Transportation Costs – Shipping from

VendorsMetrics EstablishedRecycling Opportunity

Needed from RetailerStore Opening RegionsSite AddressesConstruction/Open DatesVendor ContactsEquipment & Fixture Lists (per Store)Authority for ESL to Act as Transportation ManagerGC ContactsSample Store Models

ExtrasOpen & Inspect OpportunityProactive Claims PreventionInventory Visibility On LineSingle Point of ContactAbility to Measure CostsAbility to Change Operational ModelCentralized ControlImprove Revenue/Sq Ft Opportunity

Examples of Current and Recent Projects

Shipping of all FF&E for Marriott International new builds and renovations throughout the U.S. and Canada

Installation of FF&E and warehousing for Hilton. Crating and international shipping for Hilton. Warehousing and final mile delivery for InnKeepers. Warehousing, final mile delivery and installation for a 120-unit privately held condominium

project in Orlando, FL. New installation and ‘flipping’ of old FF&E during renovation at a prominent 500+ guestroom

Indian nation resort casino. Shipping, warehousing and delivery of foodservice equipment to a major installation in

Afghanistan. Hampton Inn and Embassy Suites model room consolidation and shipping for Hilton in London,

UK. Air freighting model room for a palatial resort in Dubai with contract negotiations for installation

1,880 rooms. Consolidation and JIT shipping containers to a prominent resort in the Virgin Islands. Shipping and warehousing FF&E for condominium projects in Hawaii.

Exel Specialized Logistics essentially can ship FF&E fromforeign and domestic origins to properties in North America (United States, Canada, Caribbean and Mexico) and provide complete installation. We also ship domestically to off shore properties.

One stop shopping.

What we need to get started on specific project quotes:

•Property location and contacts.•Scope of work.•Room & public space layouts.•FF&E lists.•Vendors (shippers) and contact information.

We provide a specific quote for each property. Commencement of operations is contingent upon receipt of a signed contract and credit approval.The client will have a single point of contact with back up for all work.

What We Need to Get Started

Location of property List of FF&E Scope of Work Start & Finish Dates Contact Information Remington Hotels Service Expectations Competed Credit Report Signed Contract for Services

For additional information:

Dave Zych, Director800.434.8881 Ext: 5205 or dave.zych@ets.exel.com