Continental Tire North America Optimizes Tire Distribution

HANOVER, Germany and CHARLOTTE, N.C., Jan. 14, 2004 -- In a sign that Continental AG is moving ahead with the reorganization of its passenger tire business in North America, Continental Tire North America, Inc. (CTNA) and Exel announced today that they have agreed to form a strategic partnership in the area of tire distribution logistics in North America. Exel will assume control of, among other things, the management of CTNA's tire distribution warehouses. All details of the agreement will be finalized by April 1, 2004.

"This is a win-win situation. CTNA's goal is to provide the best in class customer service. The partnership allows us to focus on our core competencies, tire development and manufacturing, while, at the same time, providing faster and more efficient service to our customers," said Martien de Louw, member of the Continental Executive Board and president and CEO of Continental Tire North America, Inc. "This initiative is another significant step in strengthening our market position in North America."

The international automotive supplier, Continental, produces around 27 million tires a year at its five plants in NAFTA and operates seven warehouses in the U.S. and Mexico.

The Continental Corporation is a leading supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2002 the company realized sales of EUR11.4 billion with a workforce of around 64,500.

Exel is a leading logistics company worldwide, with sales of GBP4.7 in 2002 and a workforce of around 67,000 in more than 120 countries. Further information is available on the Web under www.exel.com .

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