Exel Specialized Logistics “What we do changes your world”

1. Exel Specialized Logistics“What we do changes your world” Dave Zych Director May 23, 2007

2. Supply chains and why they have become so important… “When the world is flat, your company both can and must take advantage of the best producers at the lowest prices anywhere they can be found. If you don’t, your competitors will. So global supply chains—that draw products from every corner of the world—have become essential. That is the good news. The bad news is that making these chains work is much harder than it looks and requires constant innovation and adjustment.” --The World is Flat by Thomas L. Friedman

3. The Customers Exel Specialized Logistics Serve • Hotels – FF&E shipping, warehousing & installation • Retailers – Store fixture shipping, warehousing & installation • Restaurants – Dining and kitchen equipment package shipping, warehousing & installation • Assisted Living – FF&E shipping, warehousing & installation • Casinos, Resorts, Stadiums & Institutions – Shipping, warehousing & installation

4. What we actually do… • Ship – Make certain that the manufacturer ships the goods in time to meet the facility opening deadline. • Warehouse – Control inbound/outbound shipping and inventory. Stage interior packages and deliver to the construction site for timely installation. • Installation – Set and fix items in place according to a predetermined schedule and detailed work diagrams. We essentially manage the portion of the client project that involves furniture, fixtures and equipment shipping, storage and placement (also known as final mile services). We are an outsource the customer can use in place of their own full or part time personnel resources.

5. What we DO NOT do… • Move general commodities or raw materials • Provide supplies or provision support • Install items that require hard wired electrical, plumbing or other trade work • Construct or fabricate during installation • Move used commodities or household goods • Handle small package shipments • Provide long-term warehousing & fulfillment programs

6. How we do what we do… • Ship with outside carriers. We have strong long term relationships with LTL, TL, inter-modal, air and ocean carriers. • Warehouse using independent, Exel and various van line warehouses. Our relationships and buying power in the market place serves for favorable pricing and service. • Installation is by proven contracted vendors. • We have some of our own assets, but customer requirements may dictate use of outside sources. We use other people’s assets to service our clients needs in the most efficient cost-effective manner.

7. Why use our services? • We provide expertise that removes the burden of a client whose core competency is in another field of having to recruit and hire employees for this function. • Our sole business is logistics as it relates these clients’ growth and expansion programs. • We provide leverage purchasing with carriers, warehouses and installation vendors. • Seasonal fluctuations and occasional programs provide an advantage to use ‘experts’ to coordinate expansion and rapid growth programs.

8. How we operate as a Third Party Logistics (3PL) firm to provide solutions to clients building/renovating restaurants, retail stores, hotels, casinos, assisted living and condominiums. • Provide the carrier and logistics vendor relationships that are best suited and create the greatest advantage to the client. • Manage the entire scope of logistics. • Understand the opening schedule and build transits and/or warehousing programs that will meet deadlines. • Install and manage the FF&E inventory. • Communicate with the client. • Seek the lowest cost solution.

9. Global CoverageIt is essential to have and/or understand the infrastructure to leverage the supply chain for worldwide business growth. We no longer operate a local, regional or even national economy. NorthAmerica Europe incl. Eastern European Countries Emerging Markets Asia Pacific Latin/Central America

10. Global OptimizationIt doesn’t matter if you can get product at a lower cost in various parts of the world. The key is that the total cost of delivering all your product on time from all four corners of the globe has to be low, and certainly lower than those of your competitors. A transportation or logistics manager of a firm seeks to do business with the lowest priced carrier. However, the project manager wants to do business with the most reliable carrier. The lowest cost carrier may not provide the most reliable service. Matching demand, construction schedules and service is a craft requiring skilled tenured professionals and a reputable experienced logistics provider.

11. Expertise Needed – The kind of job positions required operate a business unit handling expansion programs for retail, hospitality & foodservice • Clerical – Basic PC skills (Word, Excel, Power Point, etc). • Customer Service – Communicating clearly and effectively with shippers, vendors and clients. • Operations – Industry knowledge and experience. • Project Managers – Oversea and control complex logistics projects • Management – Controlling assets, people and managing costs. Prudent decision skills and industry knowledge. • Sales – Industry knowledge, sales experience and relationship building.

12. Additional Staffing (Career Opportunities) • IT professionals • Cargo claims administrators • Risk management professionals • HR • Accounting • Revenue processing • Business management All of these positions will require some knowledge of either warehousing, transportation and logistics processes.

13. Providing solutions for complex logistics challenges… • Project Management – A tenured, experienced project manager is assigned to the project. • Construct a Solution – Our team of logistics professionals construct a plan to execute the client’s project. • Operate – We execute based on the scope of work, timeline and obstacles. • Create – Customize a solution for situations at projects requiring special handling, environment conditions, legal restrictions, etc.

14. Hospitality & Retail Projects Managed by a World Class Logistics Firm – Additional Detail About How the Customer Benefits • Global expertise • Worldwide team with local knowledge • All-around service from a single source with punctual delivery • Regional warehouses (near project sites) • Service quality & consistency • Efficient transactions using the global network • Full transparency with online Tracking and Tracing • Flexibility • Accountability • Combination with all modes of transportation • Optimal price estimates • Competitive rates for your projects • Stable financial worldwide supply chain services company

15. Value Added Services – Security & Liability • We provide expertise and consultancy in all security-related questions for our customers • We provide $10 million ALL RISK insurance for our domestic warehouses at no additional charge • We manage security issues proactively and provide effective investigation as necessary through the whole supply chain • We manage and administrate carrier & warehouse cargo claims

16. Specialized Delivery Services Division of Exel Transportation ServicesWe are a very large company that can assist major clients with projects involving… • Rapid expansion projects involving renovating multiple facilities or properties simultaneously. • High velocity rollouts to multiple sites of fixtures, equipment or furnishings. • Installation of furnishings, fixtures & equipment in renovated or new build facilities. • Short term storage of FF&E during construction. • Managing FF&E inventories during construction.

17. Specialized Services Network (Domestic U.S.) Our warehouse & final mile delivery network has facilities usually within 30 miles of client projects

18. Warehousing & Distribution (Long & Short-Term) • De-vanning Services • Timely inventory reporting and tracking via web enabled WMS • Long and short-term storage • Repack and kit assembly services • Master pack design & creation • Professional on site management and inventory control • Recycling coordination • Logistical control of highway and inter-modal shipment • In-house assembly, installation and removal of old FF&E

19. Specialized Logistics Domestic (U.S., Canada & Caribbean) – Projects Requiring Staging Warehouses Near Construction/Renovation Sites • Warehouses located in the same city as the property with the capability to handle and store specialized high value furniture, fixtures and equipment (usually within a 30-mile radius). • Local deliveries with specialized equipment such as lift gate trucks, pads, dollies, etc. • Inside placement, debris removal and FF&E installation (including flooring, window treatments & wall coverings). • All risk insurance liability. • Online inventory. • Project management

20. Specialized Logistics – Project Flow for New Construction/Renovation

21. Hospitality/Assisted Living Renovations & Upgrades

22. Model Home & Condominium Projects

23. Live Process Example The following four slides are actual notes from a post client meeting of the logistics professionals designing a solution for a major convenience chain store opening. The client is opening and remodeling hundreds of stores in various regions of the continental United States. Their logistics challenges handled by their internal resources are slowing down the expansion program. They brought our team in to analyze the process and potentially take over the logistics.

24. Retailer Provides To ESL Ops Contact Vendor Contact Data & Authority to Act as Transportation Mgr ESL Ships Product to Regional Sites Kit Equipment & Commodities By Store Type Inventory Control & Visibility Staging Warehouse 0-75 mi. Radius of Store Site Cluster Completed Store Deliver Kits to Stores Driven by Date & Install Process A plan for a multi store rollout (actual notes from a post client operational discussion).

25. Value • Risk Management – Claim Control • Velocity – Multiple Store Openings Simultaneously • Visibility – Inventory Control • Modeling of Process – Standard Logistics SOPs • Cost Control • Reduced Transportation Costs – Shipping from Vendors • Metrics Established • Recycling Opportunity

26. Needed from Retailer • Store Opening Regions • Site Addresses • Construction/Open Dates • Vendor Contacts • Equipment & Fixture Lists (per Store) • Authority for ESL to Act as Transportation Manager • GC Contacts • Sample Store Models

27. Extras • Open & Inspect Opportunity • Proactive Claims Prevention • Inventory Visibility On Line • Single Point of Contact • Ability to Measure Costs • Ability to Change Operational Model • Centralized Control • Improve Revenue/Sq Ft Opportunity

28. Examples of Current and Recent Projects • Shipping of all FF&E for Marriott International new builds and renovations throughout the U.S. and Canada • Installation of FF&E and warehousing for Hilton. • Crating and international shipping for Hilton. • Warehousing and final mile delivery for InnKeepers. • Warehousing, final mile delivery and installation for a 120-unit privately held condominium project in Orlando, FL. • New installation and ‘flipping’ of old FF&E during renovation at a prominent 500+ guestroom Indian nation resort casino. • Shipping, warehousing and delivery of foodservice equipment to a major installation in Afghanistan. • Hampton Inn and Embassy Suites model room consolidation and shipping for Hilton in London, UK. • Air freighting model room for a palatial resort in Dubai with contract negotiations for installation 1,880 rooms. • Consolidation and JIT shipping containers to a prominent resort in the Virgin Islands. • Shipping and warehousing FF&E for condominium projects in Hawaii.

29. Exel Specialized Logistics essentially can ship FF&E from • foreign and domestic origins to properties in North America (United States, Canada, Caribbean and Mexico) and provide complete installation. We also ship domestically to off shore properties. • One stop shopping. • What we need to get started on specific project quotes: • Property location and contacts. • Scope of work. • Room & public space layouts. • FF&E lists. • Vendors (shippers) and contact information. • We provide a specific quote for each property. Commencement of operations is contingent upon receipt of a signed contract and credit approval. • The client will have a single point of contact with back up for all work.

30. What We Need to Get Started • Location of property • List of FF&E • Scope of Work • Start & Finish Dates • Contact Information • Remington Hotels Service Expectations • Competed Credit Report • Signed Contract for Services

31. For additional information: Dave Zych, Director 800.434.8881 Ext: 5205 or dave.zych@ets.exel.com