CEVA Bolsters Commitment to China Logistics Market Through Full Acquisition of CEVA Ground

Survey findings on domestic logistics present opportunities for CEVA Ground

SHANGHAI, June 6, 2012 /PRNewswire-Asia/ -- CEVA Logistics, a leading global supply chain management company, announced today that it has completed the buyout of CEVA Ground in China, transforming the former joint venture into a wholly owned subsidiary of the international logistics provider in the country's road transport industry. The move solidifies CEVA's position and reinforces its long term commitment to support the development of China's fast evolving logistics industry.

Under the original agreement with local partner Shanghai J.Y. (Group) Company, CEVA owned a 70% share in CEVA Ground, and J.Y. Group owned the remaining 30%. The buyout transaction, which was completed on 6 June, 2012, supports CEVA's ability to provide end-to-end integrated solutions. CEVA Ground's current operations also represent a unique, service-focused approach in China's logistics industry, where intense competition, market fragmentation and cost pressures have driven many road transport providers to experience service quality and reliability issues.

"The acquisition of CEVA Ground places us in a strong position to deliver against our business plan for China. As a wholly owned subsidiary, CEVA Ground will continue to exceed our customers' expectations in terms of quality service and cost," said Martin Thaysen, Executive Vice President of CEVA China. "We still value our partnership with J.Y., as we believe that our strengths are complementary in growing our capabilities, coverage and quality to successfully address the operational challenges presented by this vast market."

Customer pain points and other deep insights into the China market were revealed by a recent survey jointly commissioned by CEVA and the Global Supply Chain Council (GSCC), CEVA's latest initiative to better understand and anticipate the needs of its China customers. The results of the "State of Logistics China Survey 2012" offer a number of key insights:

• The most common services outsourced to 3PLs in China were direct transportation services (77%); 49% of respondents reported their largest intra-China logistical problems were related to cost and reliability of local providers
• Over the next one to two years, 64% of respondents believe that domestic transport is the main service in need of improvement. Domestic transport is also a big challenge for multinational companies (MNCs) that have resellers and clients in China
• The biggest challenge logistics managers of MNCs face is domestic transportation. The rising number of foreign companies entering the China market, the increasing number resellers and customers, and the growing importance of the China market indicate that domestic transportation challenges will only continue to increase.

"This survey highlights the existing challenges in the Logistics industry in China and issues that must be addressed by all service providers, including CEVA, as they continue to operate in the Chinese market," Thaysen added.

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CEVA Logistics, one of the world's leading non-asset based supply chain management companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 51,000 employees are dedicated to delivering effective and robust supply chain solutions across a variety of sectors and CEVA applies its operational expertise to provide best-in-class services across its integrated network, with a presence in over 170 countries. For the year ending 31 December 2011, the Group reported revenues of euro 6.9 billion. For more information, please visit www.cevalogistics.com.

SAFE HARBOR STATEMENT:

This news release may contain forward-looking statements. These statements include, but are not limited to, discussions regarding industry outlook, the Company's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2012 and the other non-historical statements. These statements can be identified by the use of words such as "believes" "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and, in addition to the assumptions specifically mentioned in the above paragraphs, there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including the effect of local and national economic, credit and capital market conditions, a downturn in the industries in which we operate (including the automotive industry and the airfreight business), risks associated with the Company's global operations, fluctuations and increases in fuel prices, the Company's substantial indebtedness, restrictions contained in its debt agreements and risks that it will be unable to compete effectively. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website, which investors are strongly encouraged to review. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

For more information contact:

Anita Wei
+86-21-2310-7688
Anita.wei@cevalogistics.com