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Exel PLC (EXL)

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Monday 10 November, 2003

Exel PLC

Acquisition

Exel PLC
10 November 2003


EXEL ACQUIRES LEADING

ITALIAN LOGISTICS CAPABILITY


(London UK, 10 November 2003) - Exel, a world leader in supply chain management
solutions, announced today that it is acquiring Cappelletti Spa, a leading
Italian logistics business based in Milan. Focused on providing solutions to
consumer products and retail companies, Cappelletti had turnover of over €44m in
2002.

Strengthening Exel's logistics operations in Italy has for sometime been a
strategic priority for the Group. Demand for professional outsourced logistics
solutions continues to grow in Italy, providing opportunities for international
logistics specialists to use local skills to build on established global
customer relationships. Over the last few years Exel has developed a leading
freight forwarding business in Italy and has started to develop contract
logistics solutions for the healthcare and retail sectors.

An established business with a strong customer portfolio, Cappelletti Spa will
provide Exel with a strong platform from which to develop a broader presence in
the fast growing Italian market for supply chain solutions. Focused on the
consumer and retail markets, Cappelletti fits well with Exel's customer and
sector focused strategy and existing infrastructure in the country.

Headquartered in Milan, Italy, the company has seven business units operating
throughout Italy. Cappelletti's customers include some of the leading
multinational fast moving consumer goods companies.  Cappelletti's key
management team will remain actively involved in the business even after the
acquisition is finalised.

Consideration will be in cash. Further capped payments could be made, dependent
on future performance. Net tangible assets as at 31 December 2002 were €13m
(£10m). It is expected that the acquisition will be earnings enhancing in the
first full year of ownership. The deal will be subject to certain regulatory
clearances.

Fabio Tacchinardi, Managing Director of Cappelletti commented: "Bringing Exel's
leading global logistics expertise to Cappelletti's Italian customers will
provide significant opportunities to strengthen our relationships and extend the
range of value added services we can offer."

John Allan, Chief Executive of Exel, added: "Cappelletti provides Exel with a
significant opportunity to strengthen its presence in the important Italian
contract logistics market without exposing the Group to asset-intensive
operations. The synergies created between the two businesses, combining strong
local customer focused operations with global customer relationships, will
enable us to accelerate the growth of our business in Italy."

                                    - ends -

For further information contact:

For Exel:
John Allan, Chief Executive                               +44 1344 744409
John Dawson, Corporate Affairs                            +44 7733 301986

The Maitland Consultancy:
Martin Leeburn                                            +44 20 7379 5151


About Exel:

Exel is the global leader in supply chain management, providing customer-focused
solutions to a wide range of manufacturing and retail industries.  Exel's
comprehensive range of innovative logistics solutions encompasses the complete
supply chain from design and consulting through freight forwarding, warehousing
and distribution services to integrated information management and e-commerce
support.

Exel, a UK listed, FTSE 100 company, has turnover of £4.7 billion (over US$7
billion) and employs around 67,000 people in 1,600 locations in over 120
countries worldwide.  Exel's customers include over two thirds of the world's
largest, quoted non-financial companies.  More information is available at
www.exel.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange