CTOO C2 (MM)

C2, Inc. Awarded Sixth Long-Term Dedicated Facility Contract With Major Food Company MILWAUKEE, Oct. 29 /PRNewswire-FirstCall/ -- C2, Inc. announced today that its subsidiary, Total Logistic Control (TLC), a leading provider of third party logistics and dedicated facility operations, has been awarded a 10-year contract from a Fortune 100 Food Company to staff and operate a newly constructed refrigerated distribution facility, located in York, Pennsylvania. Start-up of the facility is under way with operations expected to commence early in the first quarter of 2004. This contract is the sixth long-term management contract with this customer to operate both dedicated refrigerated and dry distribution centers. Under the new agreement, TLC provides turnkey management and staffing of the 390,000 sq. ft. facility for a 10-year term. The TLC operations team will provide warehousing and distribution services for its client's diverse family of retail products destined for grocery stores throughout the northeast region. Commenting on the announcement, William T. Donovan, C2 President and CEO, said, "This award is another important win for our team and it further confirms TLC's capabilities to develop and execute logistics programs that enhance its client's supply chain. This award is the sixth long-term facility management contract we have with this customer. It demonstrates the importance of the relationship we have with this client which has grown tremendously over the past year. TLC provides facility management services in both dedicated refrigerated and non-refrigerated facilities for this client. We continue to view Dedicated Facility Management Services as a major growth opportunity for our Company. We have been successful in developing a significant presence in this field and we are actively developing a number of additional projects." Including this award, TLC has executed 9 long-term contracts in its Dedicated Facility Management Services division for both food and non-food distribution, fulfillment and manufacturing. This division of TLC specializes in engineering customized logistics solutions to deliver cost savings, operational efficiency, and inventory control. TLC is the nation's only third party provider offering a full array of supply chain management services, multi-temperature warehousing, transportation, procurement/distribution and contract manufacturing/packaging services. C2, Inc. is a Milwaukee-based public company with two operating businesses, Total Logistic Control and Zero Zone. Total Logistic Control TLC, based in Zeeland, Michigan, is a national provider of integrated logistic services which include refrigerated and dry warehousing, transportation operations, supply chain management, dedicated third-party facility and operations management, food distribution, bottling and packaging and fulfillment services. Operations are conducted through a national network of 41 logistic centers with 36.3 million cubic feet of refrigerated capacity and over 3 million square feet of dry warehouse space making it the eleventh largest provider of refrigerated warehousing services in the United States. TLC operates a fleet of over 425 tractors with over 700 refrigerated and dry trailers with 3 maintenance facilities. TLC recently was cited by Inbound Logistics as a Top 10 Provider of Third Party Logistics Excellence for the sixth year in a row. TLC is a wholly-owned subsidiary of C2, Inc. More information about TLC is available at http://www.totallogistic.com/ . Zero Zone Zero Zone, headquartered in North Prairie, Wisconsin is a manufacturer of refrigerated and freezer display cases used in grocery, convenience and drug store chains for retail merchandising of food, beverage and floral products. In 2002, Zero Zone acquired Zero Zone Refrigeration which manufactures refrigeration houses and racks to power and control the refrigeration systems, electrical panels, air conditioning and stand-by power for supermarkets, convenience stores and industrial applications. Zero Zone is a wholly-owned subsidiary of C2, Inc. More information about Zero Zone is available at http://www.zero-zone.com/ . The statements contained in this release that are not historical facts are forward-looking statements. Actual results may differ materially from management's expectations. The forward-looking statements involve risks and uncertainties, including but not limited to: -- Demand for and profitability of warehousing, transportation, logistic services, refrigerated display cases and refrigeration control systems may be adversely affected by increases in interest rates, adverse economic conditions, increased energy costs, loss of a material customer or vendor, weather or other factors. -- Growth in volume of services or products may be adversely affected by reduced ability to identify and hire qualified employees. -- The Company's profitability may be adversely affected by increases in interest rates because a significant portion of the Company's capital structure is debt, a portion, which bears interest at variable interest rates. -- The Company's profitability may be adversely affected by performance, which does not meet standards established in contractual agreements relating to transportation operations, logistics management, dedicated facility operations and product warranty. -- Consolidation within the food industry or grocery, drug or convenience retailers could negatively impact the Company's customers. -- The Company's market share may be adversely affected as a result of new or increased competitive conditions in warehousing, transportation or display case and refrigeration control systems manufacturing. Additional information about risks and uncertainties discussed above as well as additional material risks in the Company's business may be found in the Company's Annual Report on Form 10-K for the year 2002 and other filings the Company made from time to time with the Securities and Exchange Commission. This and other C2, Inc. news releases and additional corporate data can be found on C2's website at http://www.c2-inc.com/ . DATASOURCE: C2, Inc. CONTACT: William T. Donovan, President and CEO of C2, Inc., +1-414-291-9000 Web site: http://www.totallogistic.com/ http://www.zero-zone.com/ http://www.c2-inc.com/

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