Acquisition Expands Company's Reach into Thailand, Strengthens Southeast Asia Operations in Malaysia and Singapore

SINGAPORE and SAN MATEO, Calif., Sept. 5 /PRNewswire-FirstCall/ -- Menlo Worldwide, LLC, the global logistics subsidiary of Con-way Inc. (NYSE: CNW - News) announced today it had completed the acquisition of Cougar Holdings Pte Ltd., a leading Southeast Asia freight forwarding, warehousing, logistics and distribution management company with personnel, facilities and operations in Singapore, Malaysia and Thailand.

Menlo acquired Cougar Holdings and its primary subsidiary, Cougar Express Logistics, for US$33.9 million.

The acquisition of Singapore-based Cougar Express bolsters Menlo's presence in Southeast Asia, adding 12 operating locations in the region with a client base of nearly 200 Asia-based and global businesses. In its most recent fiscal year, Cougar Express recorded US$23 million in revenues.

"The completion of this transaction is an important competitive milestone for Menlo in Asia," noted Robert L. Bianco, Jr., president, Menlo Worldwide. "We're excited to welcome Cougar's employees and customers to Menlo. Our focus now turns fully to integration planning and execution. We've already identified opportunities for growth and cost synergies, as well as potential new service offerings we can bring to market for our customers in Southeast Asia."

Heinz-Peter Faust, CEO of Cougar Express Logistics, noted that the organization combines proven experience in solutions for Asia-based logistics with strong capabilities in many of the region's dominant industries, such as consumer electronics, automotive and chemical/industrial.

"Our customers can now leverage a global platform integrated with a superior regional service portfolio," said Faust. "We know the unique logistics needs of this region and these key vertical markets. We believe our expanded organization has great potential to extend value deeper into our customers' supply chain operations, driving growth with differentiated services across more geographies."

Menlo funded the transaction from existing cash resources. The acquisition is expected to be accretive to Menlo's earnings starting in the 2007 fourth quarter.

About Menlo Worldwide

Menlo Worldwide, LLC, is a global provider of logistics, transportation management and supply chain services with operations in North America and five continents. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide's services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain re- engineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 13 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW - News), a $4.7 billion freight transportation and logistics company and FORTUNE magazine's "Most Admired Company" in transportation and logistics for 2007. For more information please visit us on the web at http://www.menloworldwide.com.

About Cougar Express Logistics (Cougar Express)

Cougar Express Logistics offers diversified logistics solutions to customers ranging from Multi-National Corporations (MNCs) to Small-Medium-Enterprises (SMEs). Established since 1986 and ISO 9001:2000 certified, Cougar Express today comprises over 320 employees and manages 2.4 million square feet of warehouse space to serve a wealth of global brands across the region. Cougar Express develops its core competencies across five main industries of expertise namely Automotive OEM Parts & Aftermarket, Chemicals/ Pharmaceuticals/ Healthcare, Consumer Electronics, Industrial Engineering, and Wine & Spirits.

FORWARD-LOOKING STATEMENTS Certain statements in this press release constitute "forward-looking statements" and are subject to a number of risks and uncertainties and should not be relied upon as predictions of future events. All statements other than statements of historical fact are forward-looking statements, including any projections and objectives of management for future operations, any statements concerning proposed new products or services, any statements regarding Con-way's estimated future contributions to pension plans, any statements as to the adequacy of reserves, any statements regarding the outcome of any claims that may be brought against Con-way, any statements regarding future economic conditions or performance, any statements of estimates or belief, any statements regarding the acquisition of Transportation Resources, Inc. and its subsidiaries, including Contract Freighters, Inc. (collectively, "CFI"), and related financing, and any statements or assumptions underlying the foregoing. Specific factors that could cause actual results and other matters to differ materially from those discussed in such forward-looking statements include: changes in general business and economic conditions, the creditworthiness of Con-way's customers and their ability to pay for services rendered, increasing competition and pricing pressure, changes in fuel prices or fuel surcharges and the effect of recently-filed litigation alleging that Con-way engaged in price fixing of fuel surcharges in violation of Federal antitrust laws, the effects of the cessation of the air carrier operations of Emery Worldwide Airlines, the possibility that Con-way may, from time to time, be required to record impairment charges for long-lived assets, the acquisition of CFI and related financing (including without limitation risks relating to the financing, integration risks and risks that acquisition synergies are not realized), the possibility of defaults under Con-way's $400 million credit agreement, $500 million bridge credit agreement, and other debt instruments (including without limitation defaults resulting from unusual charges), and the possibility that Con-way may be required to repay certain indebtedness in the event that the ratings assigned to its long-term senior debt by credit rating agencies are reduced, labor matters, enforcement of and changes in governmental regulations, environmental and tax matters, matters relating to the 1996 spin-off of Consolidated Freightways Corporation ("CFC"), including the possibility that CFC's multi-employer pension plans may assert claims against Con-way, matters relating to the sale of Menlo Worldwide Forwarding, Inc., including Con-way's obligation to indemnify the buyer for certain losses in connection with the sale, and matters relating to Con-way's defined benefit pension plans. The factors included herein and in Item 7 of Con-way's 2006 Annual Report on Form 10-K as well as other filings with the Securities and Exchange Commission could cause actual results and other matters to differ materially from those in such forward-looking statements. As a result, no assurance can be given as to future financial condition, cash flows, or results of operations.

Source: Menlo Worldwide