© Copyright IBM Corporation 2003

Schneider Logistics, Inc.

Overview presented by

Martin WinchellManaging DirectorSchneider Logistics, Greater China

Proprietary & Confidential

Schneider National, Inc. is a North American transportation leader with a broad portfolio of services

• A premier provider of transportation and logistics services

• Privately held, founded in 1935

• Headquarters in Green Bay, Wisconsin USA

• $3.7 billion in revenue (2008)

• Company-owned offices in China, United States, Canada and Mexico

• Unmatched trucking capacity with 14,600+ drivers and 50,000+ trailers and containers

• 21,200 associates worldwide

Truckload• One-Way Van• Dedicated• Expedited• Bulk

Logistics• Supply Chain

Management• International

Logistics• Transportation

Management

Intermodal• TruckRail®

• TruckRail ® Express

China solutions consist of three core services

Supply Chain Consulting

China Domestic Logistics

International Logistics

Schneider Logistics (Tianjin) Co.,Ltd. Transportation Management Warehousing and cross-docking 3PL management services Multimodal solutions

Schneider Global Logistics (Tianjin) Co., Ltd. International ocean & air Vendor management & consolidation Regulatory compliance “First mile” solutions

Schneider Enterprise ConsultancySchneider Logistics 3PL & Warehouse Facility

Schneider Enterprise Consultancy (Shanghai) Co.,Ltd. Supply chain engineering Research and development Network optimization China education and training program

Schneider Logistics will improve your clients competitive advantage at each step of the supply chain

North American Transloading & Distribution• Transloading /Consolidation• Deconsolidation• Port Drayage• Contract Warehousing • Value Added Services

China Supply Chain Management• Transportation Network

Management• Supplier Management• Freight Audit & Payment

China Schneider Logistics Consulting• Supply Chain Design• Transportation Procurement• Advisory Services

China Transportation Management• Domestic trucking• Domestic warehousing

Air/Ocean Freight Forwarding• Air Import/Export• Ocean Import/Export

U.S. Customs House Brokerage• Customs House Brokerage• Breakbulk Services

Schneider connects international to domestic

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• Global origin services for domestic and international shipments

• Freight forwarding services via network of company owned and agent offices

• US Customs brokerage services via company owned and managed offices

• Local U.S. port drayage through company owned and managed operations

• Port transloading and warehousing services via company managed facilities

• Strong North American transportation services via truckload and intermodal

Schneider freight forwarding offices

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• Close proximity to major airports and seaports

• Secured and monitored facilities

• Local & regional pick-up & delivery services

• Customs bonded access

• Ample dock doors

• Access to local rail ramps

Full service capabilities• Air Freight-Export and Import

Consolidation servicesCharters

• Ocean Freight-Export and ImportFCL and LCL servicesSpecialty and project cargo servicesDOT Licensed for hazardous cargoMulti-modal services via Schneider portfolio

• Licensed customs house brokersC-TPAT certifiedRemote Location filing via any port“ABI” (automated broker interface) & “ACH” certifiedIn-bond transfers, on-forwarding, temporary import entries

& ATA Carnet processing

• Supply chain management consulting services• FMC licensed NVOCC• Approved IATA agency• Expertise in all aspects of U.S. Customs regulations

FDA, USDA, FCC, ATF, OGA

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Flexible services, streamlined solutions

• Warehouse Advantage Warehouse functions of receiving, picking, put-away, moving and inventory control

• Yard Advantage Container and trailer tracking activity in the yard such as gate in, gate passes, yard moves and gate out

• Electronic Data Interchange EDI capable and provide a total solution for inbound and outbound data communications with external interfaces

• Customer Advantage Dashboard Web based application provides the visibility and real time information for the business and customers on inventory levels, order status, picking status ,shipping and various other reports and information

Los Angeles, CA

Seattle, WA

Savannah, GA

Charleston, SC

Norfolk, VA

Houston, TX

Chicago, IL

• 20 properties at major gateways across the U.S.

• Over 10 million square feet of operations ranging from 75 thousand to 1.8 million square feet

• 300+ dray drivers at major U.S. ports.

• Creating customer value with standard and customized services: Transloading, flow-through

distribution , warehousing, and cross-docking

Direct to store shipment and delivery

Value-added services including kitting, co-packing, palletizing, re-packing, labeling and other special handling

State of the Art Warehouse Management System

Destination # of IB containers # of OB Trailers Ocean Cost HK to LA Total Drayage cost Total Clean truck fee Total Transload cost Total OB IM Trailer cost

Total OB OTR Trailer cost

DC 1 376 268 500,080.00$ 58,280.00$ 26,307.82$ 124,080.00$ 517,422.20$ 556,780.85$

DC 2 966 690 1,285,049.99$ 149,761.47$ 67,634.21$ 318,846.99$ 950,164.03$ 1,431,415.94$

DC 3 1157 826 1,538,440.26$ 179,291.91$ 80,970.54$ 381,718.26$ 1,302,700.32$ 1,829,983.78$

DC 4 1142 816 1,518,832.07$ 177,006.75$ 79,938.53$ 376,853.07$ 1,681,816.94$ 2,170,086.38$

DC 5 1150 821 1,529,296.51$ 178,226.29$ 80,489.29$ 379,449.51$ 1,620,265.83$ 1,783,379.84$

DC 6 1168 834 1,553,271.09$ 181,020.32$ 81,751.11$ 385,398.09$ 2,292,117.60$ 1,901,213.82$ 7,924,969.92$ 923,586.72$ 417,091.50$ 1,966,345.92$ 8,364,486.93$ 9,672,860.62$

Ocean-current rate 7,924,969.92$ DC 1 $3,225 Drayage (w/fsc)+CTF 1,340,678.22$ DC 2 $3,225 Transload 1,966,345.92$ DC 3 $3,650 Transportation(w/ fsc) 8,253,772.84$ DC 4 $3,825 TOTAL Cost 19,485,766.90$ DC 5 $3,425 Projected Savings (2,223,384.38)$ DC 6 $3,735 Projected Savings % 10%

21,709,151.28$ Total Annual Cost

Schneider Logistics Transload and Distribution Analysis

SLI Solution Port to Door

4,362,005.66$

Totals

Discount Retailer Historical Cost per Container-Port to DoorTotal cost based on given container volumes above

3,116,004.68$ 4,222,035.30$ 4,368,069.68$ 3,938,225.98$

1,702,810.00$

Discount Retail Importers can realize savings between 5% and 15% on transportation costs

Optimize transloading economics

Confidential and Proprietary

Drayage, warehousing and transloading are core competencies for Schneider Logistics

KOHL’S

020000400006000080000

100000120000140000160000180000

Schneider Annual Import / Export FEU Volume

Transload

Total

Our Customers have Recognized our Value and Best-in-Class Service Record

• Kohl's 2008 Deconsolidator of the Year

• Electrolux's 2008 Vendor of the Year

• Walmart’s largest transloader in the US

A bundled solution to benefit the client

• Origin Freight Forwarding and ocean /air services bundled with Schneider’s Customs House Brokerage, warehousing and transportation services

September 20, 2007 Proprietary & Confidential 11

Schneider Logistics

September 20, 2007 Proprietary & Confidential 12

China Contact:

Ms. Helen Sunsunh@schneider.com

OR

Mr. Kevin Zhangzhanghu@schneider.com