McLane Begins Distribution in Asia (fwd)

[Robert Weissman <rob@essential.org>]

McLane Begins Distribution in Asia
Source: Business Wire, Wednesday, 9/8/99

TEMPLE, Texas--(BUSINESS WIRE)--Sept. 8, 1999--McLane Acquisition Inc.
Taiwan Branch and Philip Morris Taiwan S.A. have signed a five-year
distributor agreement which will allow McLane to distribute all Philip
Morris tobacco products in Taiwan.

Under the terms of the agreement, McLane will acquire 12 existing sales
offices located in four regions of the country: Central Region, Southern
Region, Northern Region, and Greater Taipei Region. Deliveries will begin
in Central Region Sept. 16, Southern Region Oct. 4, Northern Region Oct.
15, and Greater Taipei Region October 19.

Dan Gette, formerly senior vice-president of McLane/Western in Longmont,
Colo., is president of the Taiwan Branch. Gette said, ``McLane ventured
abroad in 1997 with Philip Morris in Brazil. Now McLane is expanding its
vision with Philip Morris in Taiwan. We will work closely with Philip
Morris to provide total customer satisfaction and, as a result, ensure
success for all of us.''

Anthony Lau, general manager of Philip Morris Taiwan, said, ``McLane has
been a long time business associate of Philip Morris in both the United
States and South America. We believe the new relationship in Taiwan will
provide us with a strong, competitive edge to grow Philip Morris' business
in this market.''

According to Lau, Philip Morris entered the Taiwan market in 1987 when it
was opened to foreign tobacco companies following more than 40 years of
government-controlled tobacco sales. ``It has since established a firm
ground with brands such as Marlboro, Parliament, Virginia Slims, and L&M
with sales (turnover) reaching more than US $110 million in 1998,'' Lau
added.

McLane's distribution services will include utilizing a dedicated sales
force which will call on all classes of trade within Taiwan, a country
with a population in excess of 21 million. The Texas-based company will
handle order collection, processing and fulfillment, traffic management,
distribution center management, transportation and delivery services.

This is McLane's second international agreement, following their entry in
Brazil in 1997.

According to Robbie Wainwright, vice president of logistics for McLane
Company Inc., ``Entering the Taiwan market with an outstanding
international corporation like Philip Morris will be the beginning of
McLane's growth in Asia and specifically the Pacific Rim. Our goal is to
create the premier logistics company in Asia.''

Vice President of Philip Morris Asia Inc., Joe Tcheng, said, ``We are
excited with the future cooperation with McLane. We believe their
expertise in the field will provide both the trade and consumers in Taiwan
with the best and most professional service.''

McLane is currently exploring opportunities with other international
companies to distribute additional products in Taiwan, according to
Wainwright.

McLane Company Inc., its divisions, subsidiaries, and other affiliates,
provide nationwide distribution services to multiple industries throughout
the United States, Brazil, and Taiwan. A wholly-owned subsidiary of
Wal-Mart Stores, Inc. (NYSE:WMT - news), McLane delivers food and non-food
products to convenience stores, mass merchandisers, and quick serve
restaurants. Based in Temple, Texas, the company operates 15 distribution
centers in the United States, an industry-specific software company, a
third party logistics company and a contract carrier. In Brazil, McLane
operates five distribution centers. McLane employs more than 10,000 in the
US.

With 1998 operating revenues of $74 billion, the Philip Morris family of
companies is the world's largest producer and marketer of consumer
packaged goods. Philip Morris Companies Inc. has five principal operating
companies: Kraft Foods, Inc. (comprising Kraft Foods North America and
Kraft Foods International), Miller Brewing Company, Philip Morris
International Inc., Philip Morris Incorporated (PM USA) and Philip Morris
Capital Corporation.

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Contact: 

McLane Company Inc., Temple

Martha Kahler, 254/771-7383 Office

254/778-0038 Home

254/771-7392 Fax

E-Mail: mkahler@mclaneco.com