DAIMLER TRUCKS NORTH AMERICA SIGNS MULTI-YEAR CONTRACT WITH KONTANE LOGISTICS

Carolina-Based Third Party Logistics Leader to Perform Sub-Assembly and Sequencing Services for Freightliner Manufacturing Facilities

STATESVILLE, N.C.—March 1, 2010— Kontane Logistics, an industry leader in Third Party Logistics with offices in North and South Carolina, has signed a multi-year contract to perform wheel and tire assemblies for Daimler Trucks North America’s Freightliner Group, the largest heavy-duty truck manufacturer in North America and a leading manufacturer of medium-duty and specialized commercial vehicles. The Kontane facility in Statesville, NC, will support Freightliner locations in Cleveland and Mt. Holly, NC, and Gaffney, SC. Activities included in the contract subsist of the mounting, balancing, and sequencing of over 200,000 tires per year for Freightliner models such as the Argosy, Columbia, and Cascadia class trucks, as well as Freightliner-made school buses and recreational vehicles.

In February, Kontane Logistics, in collaboration with Daimler Trucks North America and Freightliner, took over operations at the existing Alcoa Subassembly Logistics (ASL) plant in Salisbury, NC. Prior to the take-over, ASL was in the midst of a company-wide consolidation and potential relocation to Ohio. As a result of Kontane’s ability to meet the Freightliner service level requirements, the company will be able to ensure a smooth transition, retain long-term business in NC, and maintain employment for existing staff of ASL. Full sub-assembly and sequencing production is scheduled to begin in April 2010.

“The opportunity for Kontane Logistics to create a long-term, vested partnership with Daimler and Freightliner will poise our organizations for growth and profitability in this evolving economy,” said Michael J. Stolarczyk, President of Kontane Logistics. Ed Byrd, CEO and owner of Kontane, Inc. and NC resident, went on to say, "Kontane continues to make local investments in response to a resurgent commercial vehicle market. Our investment in Iredell County will maintain opportunities for the local community, such as sales to state and local vendors as well as an expansion of the state and local tax base. We are thrilled to have the opportunity to keep this vibrant operation in North Carolina.”

The new facility will add to Kontane's presence in the Carolinas, where the company has locations in the cities of Hickory, Troutman, and Statesville, NC, along with a large distribution center and Foreign Trade Zone in Charleston, SC.

Kontane Logistics
Kontane Logistics was established in 1995 as a separate operating division of Kontane Inc., the southeast’s premier packaging design and builder based in Hickory, NC. The Logistics division was originally formed as a dedicated third party logistics provider involved with packaging and exporting to several countries around the globe. Since 1997, Kontane Logistics has expanded to include warehousing and distribution, cross-docking, freight consolidation, import material receipt, line sequencing, parts distribution, development of logistics information systems, sub-assembly, and foreign trade zones services. Kontane Logistics currently has four locations in throughout NC and in Charleston, S.C. For more information, visit www.kontanelogistics.com or call 843-352-0011.