For further information, please contact:

Brian Beattie
SVP-Marketing
CHEP International
407.563.2060

Ronald Margulis
Managing Director
RAM Communications
908.232.3230

Chep Launches New Pallet Size to
Address Customer Needs

The new 810mm x 1040mm composite pallet is designed to meet
stocking and merchandising needs in the foodservice, home
improvement and grocery industries

Chicago -- May 6, 2001 -- CHEP, the world leader in equipment pooling solutions, announced the introduction of an 810mm x 1040mm composite pallet at the Food Marketing Institute's Annual Convention today. The new pallet, measuring approximately 32" x 41", adds to the offering of the largest pallet pooling program in the world, which also includes the popular 4-way entry block pallet. The pallet is currently in select customer trials and is available for rent immediately.

Compared with a standard 48" by 40" pallet, the new 810mm x 1040mm pallet can increase warehouse utilization up to 300%, enabling distributors to carry smaller volumes of slow moving SKUs and reduce inventory carrying costs. The 810mm dimension allows the pallets to be placed three abreast in a conventional single deep rack, and by reducing the vertical space between rack beams, as many as six 810mm x 1040mm pallets can occupy the same cubic space as two full size pallet loads. The new size is also ideal for in-store display and end-aisle merchandising.

"The 810 x 1040 pallet meets an existing market need for our current foodservice, home improvement and grocery customers, and will be popular in many of our targeted expansion channels. Paired with our 4-way entry block pallet, the new pallet offers a solution to nearly every shipping platform challenge facing manufacturers, distributors and retailers today," said Brian Beattie, Senior Vice President of Marketing, CHEP.

The key to the new pallet design is the innovative CHEP C-Support corner bracket and plastic central posts. Made from rugged zinc coated steel, the C-Support brackets provide true 4-way entry with all conventional pallet jack and forklift equipment. Compared to conventional half pallets, the 810mm x 1040mm composite pallet is easy to handle and provides a very stable shipping platform.

"The 810 x 1040 composite pallet was designed with a smaller footprint, allowing users to reduce order quantities and overall supply chain costs. We also wanted these pallets to be able to withstand the harsh handling conditions in a retail merchandising setting," explained Tom Clinton, Senior Vice President of New Product Research and Development, CHEP.

CHEP is an international pallet and container pooling company servicing manufacturers and distributors in the consumer goods industries; grower/shippers and receivers in the produce industry; packers, processors and distributors in the meat industry; home improvement, hardware & housewares manufacturers and distributors and suppliers, assembly plants and aftermarket retailers in the automotive industry. CHEP supplies its customers with high quality pallets and reusable containers from a comprehensive depot and premium service center network. The company is part of the worldwide CHEP organization, which operates in more than in 38 countries on six continents and controls more than 147 million pallets and 29 million containers. CHEP operating principles, service organization and computer tracking systems give participants a simple solution and improved efficiency in product delivery. Additional information on CHEP is available at www.chep.com.