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C2, Inc. Operating Unit Awarded Major Logistics Services Contract

8 April 1999

C2, Inc. Operating Unit Awarded Major Logistics Services Contract from WLR Foods, Inc.

    MILWAUKEE--April 8, 1999--C2, Inc. today announced its subsidiary, Total Logistic Control ("TLC") has been awarded a five year $135 million logistics service contract from WLR Foods, Inc. of Broadway, Virginia.
    Chairman, William T. Donovan said, "The third-party logistics alliance between TLC and WLR Foods is an important accomplishment for our company. This is a significant service contract for us and it exemplifies the strategic direction that the company has been developing. We are pleased to be recognized for TLC's logistics expertise in being selected to manage such an extensive and vital distribution channel for WLR Foods."
    TLC is now expected to generate in fiscal 1999 operating cash flow or EBITDA of approximately $15 million and contribute between $0.30 and $0.35 in per share earnings to C2, Inc. before one-time transaction charges related to the Christiana Companies, Inc. and Weatherford International, Inc. merger. TLC's revenue and earnings growth is anticipated to exceed 20% over the next two years.
    The goal of this new strategic partnership between TLC and WLR Foods is to reengineer a host of multi-faceted logistics systems for increased efficiencies throughout the WLR Foods supply chain. As a core service, TLC will manage more than 33,000 annual truckloads of inbound and outbound domestic refrigerated transportation shipments including eight WLR Foods packaging and processing facilities, plus the company's distribution centers and customer locations. TLC will be responsible for identifying and implementing supply chain process improvements with the objective of lowering WLR Foods operating costs, improving service to WLR Foods' customers and simplifying and standardizing business processes.
    TLC, a 67% owned subsidiary of C2, Inc., is the nation's only third party provider offering a full array of logistics services across all temperature ranges, both dry and refrigerated-frozen. Value added services include warehousing, transportation, international freight forwarding, carrier management and distribution. As an important component of C2, Inc., TLC's logistic services contract with WLR Foods is anticipated to have a material impact on the company's revenue growth and profitability beginning in the second half of fiscal 1999 and continuing for the next five years. This award demonstrates the breadth of TLC's logistics expertise.
    Milwaukee-based C2, Inc. is a new public company principally engaged in third party product distribution services and equipment. C2's operating units include Total Logistic Control, a provider of refrigerated and non-refrigerated third party integrated logistic services which include warehousing, transportation, distribution and international freight forwarding; and Zero Zone, a manufacturer of refrigerated and freezer display cases used primarily by grocery, convenience and drug store chains for retail merchandising of food, beverage and floral products.

    This press release contains forward-looking statements within the meaning of the Private Securities Reform Act of 1995 concerning, among other things, C2 Inc.'s prospects for its operations. These risks and uncertainties are more fully described in the C2, Inc. prospectus filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should certain assumptions provide incorrect, actual results may vary in material aspects from those currently anticipated.