Menlo Worldwide Logistics Expands Core Services Under New Agreements With Nike Golf

Market Wire, December, 2002

Global logistics provider Menlo Worldwide Logistics has signed two multi-year services agreements with Nike Golf collectively worth about $43 million in revenue to Menlo over their life.

Under one agreement, Menlo Worldwide Logistics is partnering with Nike Golf at its new custom fitting and assembly center in Tigard, Ore. This is a unique agreement in that it includes an expansion of Menlo's core services into the arena of assembly management. Menlo is managing the actual assembly of build-to-order golf clubs at the facility as well as providing distribution services such as component inventory management and finished goods exportation for clubs. These services are supported by a variety of integrated solutions for material requirements planning, inventory management and work order generation.

Under a second agreement, Menlo is customizing and staffing with about 65 people a 234,000 square foot distribution center in Memphis, Tenn. and from there will manage North American distribution of Nike Golf products - primarily apparel and accessories. Menlo's warehouse management system (WMS), including wireless, radio frequency (RF) technology, is being implemented at the distribution center.

Nike Golf, now ten months into its first year as a golf club manufacturer, is one of the fastest growing business units of Nike, Inc. The company introduced its first golf clubs - forged titanium drivers, blade-style irons and wedges - in the spring of 2002. The company is introducing a new line of forged irons next month, followed by fairway woods in February 2003.

"Menlo has the same high quality standards as Nike Golf and with tremendous logistics and operations credentials," said Mark Sheldon-Allen, director of club operations for Nike Golf. "We were fully operational at Tigard by mid-October thanks to the services they've been able to provide."

"Nike Golf is an extremely well managed company with a highly regarded brand. Even though the company is a new entry into club manufacturing, Nike already holds a clear position of leadership in its industry," said Robert Bianco, president and chief executive officer of Menlo Worldwide Logistics. "We are particularly pleased that Nike Golf''s needs enabled us to fulfill a goal of expanding our services into assembly management. This new service takes care of yet one more vital link in the supply chain and provides a solution that's ever more efficient and effective for a number of growing companies. We look forward to many years of partnership with Nike Golf and its management team."

Based in Redwood City, Calif., Menlo Worldwide Logistics is a full-service contract logistics company utilizing advanced supply chain management systems to integrate and simplify complex logistics operations for national and multinational companies. The company's management role frequently involves strategy, engineering, technology and management of supply chains.

Menlo Worldwide Logistics is one of the independent supply chain service providers operating under the Menlo WorldwideSM brand. These companies have revenues of $3.0 billion, employ 15,000 people and provide global supply chain services in more than 200 countries, including airfreight, ocean freight, global logistics management, urgent transportation, supply chain consulting and technology. Menlo Worldwide is owned by CNF Inc. (NYSE: CNF) a $4.9 billion management company that also has businesses in regional trucking and trailer manufacturing. CNF is located in Palo Alto, California.

For more information about Menlo Worldwide and Menlo Worldwide Logistics, please visit www.menloworldwide.com

For more information about Nike Golf, please visit www.nikegolf.com