CON-WAY Will Enter Airfreight Forwarding Business; Will Link With Other CON-WAY Assets for Complete U.S. Coverage

    ANN ARBOR, Mich.--April 2, 2001--Con-Way Transportation Services (CON-WAY) announced today that it will enter the airfreight forwarding business by opening Con-Way Air Express. This startup company will open on Monday, May 14, with 13 service centers, each having its own dedicated operations and sales staff. In addition, an agency network has been set up to provide full coverage for the 50 United States and Puerto Rico.
    CON-WAY is best known for its premium less-than-truckload (L-T-L) trucking operations that cover Canada, the 50 United States, Puerto Rico and connections to Mexico. This network provides direct service to more points in the U.S. and Canada than any other competitor in the industry.
    "During the 1990's, North American shippers began choosing carriers by transit time and shipment characteristics," said Gerald L. Detter, President and Chief Executive Officer of CON-WAY. "The type of vehicle used to accomplish the delivery within the required time frame became a secondary issue. Required delivery date, distance to destination, shipment size, weight and value are the criteria that now drive carrier selection. Our L-T-L and expedited operations have given us an excellent vantage point for services positioned on either side of the airfreight market. Adding an airfreight option for our customers is just a natural step in extending our services."
    Con-Way Air Express is headquartered in Forest Park, GA, near Atlanta's Hartsfield International Airport. Pickup and delivery service to regions beyond the territories covered by the company's first 13 offices will be completed through a nationwide network of agents. Con-Way AIR will also link up with the extensive network of facilities and assets within the U.S. operations of CON-WAY L-T-L operations to provide complete delivery coverage on opening day.
    Gary Baude, vice president and general manager of Con-Way AIR, heads up the new company. He comes to CON-WAY with 22 years experience in the airfreight industry. Other key management staff members include Mike Dodson, director of sales; Jim Mannfeld, director of operations; and John McManama, controller.
    "Con-Way AIR will enter the airfreight forwarding market with the latest and best technology, highly trained employees, and the high level of excellence and customer service commitment that is the hallmark of all CON-WAY components," said Baude. "We've also built a state-of-the-art computer system with unique features that will bring clear benefits to our customers," he said.
    Con-Way AIR will follow the asset-light business model of airfreight forwarding, arranging the movement of shipments using the assets of other transportation operators. This includes commercial airlines, dedicated air operators, and drayage companies. They will also have unique connections with the substantial assets of the other CON-WAY components.
    "Today's shipping environment demands flexibility, along with speed and reliability," said Bryan Millican, executive vice president, sales and marketing for CON-WAY. "Con-Way AIR's relationships with air carriers and drayage agents will be critical for the bulk of their business, but they will also have a special relationship with the other CON-WAY components. The operations and assets of our L-T-L components in addition to Con-Way NOW and Con-Way Integrated Services will provide Con-Way AIR and its customers with a complete range of quality shipping alternatives," he said.
    In 1983, the CON-WAY L-T-L companies began providing next-day delivery out to 600 miles and second-day delivery out to 1,200 miles with on-time performance exceeding 98%. Since then, they have led the growth of high performance regional L-T-L trucking that has helped change logistics patterns throughout North America. This includes a leadership role in the use of the Internet and establishing e-commerce connections with CON-WAY's its customers.
    Con-Way NOW is an expedite carrier started in 1996 that provides time-definite (measured by the hour and minute) delivery of products. They use dedicated trucks as well as air charter and next-flight-out operations to provide this exacting service.
    Con-Way Integrated Services runs a nationwide network of warehouses and provides customers with complete e-commerce connections to fulfill orders, view inventory and track shipments to delivery.
    Company officials said a significant investment has been made in computer systems as part of the strategy for opening Con-Way AIR. A special software system, known as the Sentry(TM) system, has been built. It is web-enabled and contains a special set of "exception management" tools. These tools provide Con-Way AIR and its customers special alert messages on each shipment's progress as it moves to its destination.
    "We have established access to the best transportation partners in the business to respond to our customers' needs," said Mike Dodson. "But we've gone an extra step and built a system that will help us actively monitor and improve their service performance. The Sentry(TM) system is part of our commitment to bring additional value-added service to the forwarding industry."
    The Sentry(TM) system establishes critical path measurements on each shipment. If tasks are not accomplished within certain time frames alert messages are sent to Con-Way AIR's central operations center to trigger intervention before a delivery failure occurs. The combined experience of the Con-Way AIR staff was combined with the technology of today's Internet to design the Sentry(TM) system.
    "We've made sure the technology deals with the practical issues of freight forwarding and brings added value to our customers," said Dodson. "We'll be polling our customers in the future in order to identify future enhancements to the system. The beauty of web-enabled systems is their flexibility."
    Con-Way AIR said it has established service/price agreements with the majority of major U.S. airlines. In addition, agreements have been set up with a network of cartage agents to cover local pickup and delivery in and around airport zones.
    "The key to our performance will be our employees," said Jim Mannfeld. "In the forwarding business it's experience, access to resources, flexibility and even imagination that can create the best set of alternatives to answer each shipment challenge. Employee training is the key to bringing these qualities to our customers. We've set up a special training center along with a complete set of courses to make sure each Con-Way AIR employee presents our customers with all shipping options as quickly, efficiently and courteously as possible."
    Each new Con-Way AIR employee attended a two-week training course at the Con-Way AIR Solutions Tech(TM) school at the Forest Park, GA headquarters before they were allowed to take up their position in the field. Follow-up training will be completed on a scheduled basis. The courses are intended to make sure all employees have thorough knowledge of all the shipment options available through the Sentry(TM) system so that quick access and formulation of shipping solutions can be delivered to customers.
    Con-Way AIR has a web site that provides customers with information on their services. It can be reached through the general CON-WAY web site at www.con-way.com or directly at www.con-wayair.com.
    The address and contact information for Con-Way Air Express headquarters is:

    277 Southfield Parkway, Suite 170
    Forest Park, GA 30297
    1-866-299-2900

    Con-Way Air Express will operate as a unit of Con-Way Transportation Services, Inc., a $2.1 billion transportation and services company that provides time-definite and day-definite freight delivery services, logistics, and e-commerce consulting services for commercial and industrial businesses. Within the CON-WAY family are regional less-than-truckload carriers Con-Way Central Express, Con-Way Southern Express, Con-Way Western Express and Con-Way Canada Express; Con-Way NOW, an expedited carrier specializing in emergency shipment service; Con-Way Integrated Services, a contract supply chain execution service provider; Con-Way Business Solutions, a consulting service providing supply chain management and Internet solutions; and Con-Way AIR, an airfreight forwarder with service throughout the U.S. and Puerto Rico.
    CON-WAY is a subsidiary of Palo Alto, California-based CNF , a $5.6 billion management company of global supply chain services with businesses in regional trucking, airfreight, ocean freight, customs brokerage, global logistics management and trailer manufacturing.

Note to News Media

    CON-WAY will hold a news conference call to discuss the formation and introduction of Con-Way Air Express at 2:00 p.m. Eastern time (11:00 a.m. Pacific) today. Participating in the call will be Gerald L. Detter, president and chief executive officer of CON-WAY and Gary Baude, vice president and general manager of Con-Way Air Express. ¶ The call can be accessed at 1-888-273-9887 (United States only) and is expected to last approximately 1 hour. Callers are requested to dial in at least five minutes before the start of the call. The confirmation number for the call is 577583.
    An audio replay will be available for 48 hours following the call at 1-800-475-6701 (United States only). The access number for the audio replay only is No. 577583. Because the call is a news conference for members of the media, investors are invited to listen to the call but are asked to hold their questions and direct them to the investor relations department at CNF.
    Further information about CON-WAY and additional press releases are available via the Internet at www.con-way.com