Pallet Management Systems, Inc. Joins Forces With the Nelson Company

Business Wire, June 30, 1999

BOCA RATON, Fla.--(BUSINESS WIRE)--June 30, 1999--

Pallet Management Systems, Inc. (OTC BB:PALT) announced today it is in the process of joining forces with The Nelson Company, a Baltimore Maryland-based pallet / container management and services company.

The Nelson Company provides sales and service solutions including pallet and container manufacturing, repair, reverse distribution and specialty container packaging. Terms of the transaction are cash and common stock. Under the agreement, The Nelson Company will operate as a wholly owned subsidiary of Pallet Management Systems.

The Nelson Company, which has been an industry leader since 1921, established one of the first pallet brokerage operations in the United States. Associated Box of New Castle, Pennsylvania, another industry leader since 1890, was acquired by The Nelson Company in 1985. During the past 20 years, Pallet Management Systems and The Nelson Company developed a close working relationship as they serviced many customers on a co-venture basis

"An important value of this acquisition is the management strength, experience and growth synergy," John C. Lucy III, CEO of Pallet Management Systems, pointed out. "Both companies have been evolving, keeping tuned to the changing marketplace, with growth focused on services. This merger will create stronger sales and production forces skilled in all types of transport packaging services", observed Lucy. "As we strengthen our partnerships with our customers and suppliers, we will be expanding our network capabilities, extending our geographic coverage, and increasing our profitability"

Pete Caltrider, President of The Nelson Company added, "with a 20 year history of working with Pallet Management Systems we share the same corporate culture and philosophy. Both companies have always focused on long-term relationships with customers and suppliers. By officially combining our companies, this will be a win-win-win situation for our customers, suppliers and employees as new expanded opportunities will become available."

The combined companies will have 9 locations in 8 states and over 425 employees servicing geographic areas east of the Mississippi River. Two new facilities are scheduled to open in two additional states before the end of calendar year 1999. Pro-forma annual sales are in excess of $50,000,000.

Pallet Management Systems, Inc. is the first publicly traded pallet company in the United States in the estimated $6 billion U.S. pallet industry. The company is a pioneer and leader in reverse distribution, pallet management, recovery, and recycling with operations strategically located east of the Mississippi.

"SAFE HARBOR" STATEMENT

Except for the historical information contained herein, certain of the matters discussed in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which involve certain risks and uncertainties, including but not limited to, changes in general economic conditions, material prices, labor costs, interest rates, consumer confidence, competition, environmental factors, and governmental regulations affecting the company's operations. See the company's Form 10-K for the year ended June 30, 1998, for a discussion of these and other risks and conditions applicable to the company's business.