Expeditors International of Washington

Seattle, WA

NASDAQ: EXPD

Peter Rose, CEO & Chairman

206-674-3400

www.expeditors.com

3PL Turnover:

$4.6b

Service Area:

Tier 1 – Global Supply Chain Manager – Major Markets

3PL Assets:

11,542 employees

110 warehouses

Information Systems:

Good

TMS – Proprietary–Tradeflow, exp.o

Services:

Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, warehousing and distribution, supply chain consulting

Industry Focus:

Automotive, chemicals, computers and electronics, pharmaceuticals, retail

Key Customers:

Ace Hardware, Cisco Systems, General Electric, Merck, Phillips Consumer Electronics, Toyota, Trane

Armstrong & Associates’ Evaluation:

Expeditors is the best run North American-based freight forwarder. It continued its strong organic growth in 2006, growing by 21%. Net revenues reached $1.3 billion and produced a 27.7% gross margin. Net revenues are 37% airfreight forwarding, 38% customs brokerage and 25% ocean freight forwarding. U.S. and Asia business account for 69% of revenues. Expeditors is the largest forwarder/NVOCC in the Asia/U.S. lane. It handles 770,000 TEUs per year with a 4:1 imbalance. 431,000 TEUs are from China to the U.S. Expeditors’ European operations are primarily in airfreight and constitute 17% of revenues, growing 26% in 2006. Expeditors’ net revenues are 40% high-tech, 33% retail, 10% pharmaceuticals, 10% automotive, 5% furniture and 2% other.