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Express-1 Expedited Solutions, Inc. AMEX: XPO

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Express-1 Expedited Solutions, Inc. AMEX: XPO. Driving Momentum. Investor Presentation. Safe Harbor - PowerPoint PPT Presentation
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Express-1 Expedited Solutions, Inc. AMEX: XPO
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Page 1: Express-1 Expedited Solutions, Inc. AMEX: XPO

Express-1 Expedited Solutions, Inc.AMEX: XPO

Page 2: Express-1 Expedited Solutions, Inc. AMEX: XPO

Investor Presentation

Safe Harbor

This presentation contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements are subject to various risks and uncertainties. You can find information concerning risks and uncertainties that could cause actual results to differ materially from those projected or suggested in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this presentation represent our judgment as of the date of this presentation and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this presentation.

Use of GAAP and Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (GAAP), the Company has included "EBITDA", a non-GAAP financial measure. A reconciliation of EBITDA to the most directly comparable GAAP financial measure is available on our company website, www.express-1.com. Management believes the use of non-GAAP financial measures provides useful information to investors to assist them in understanding the underlying operational performance of the Company. Specifically, management believes EBITDA is a useful measure of operating performance before the impact of investing and financing transactions, making comparisons between companies' earnings power more meaningful and providing consistent period-over-period comparisons of the Company's performance. The Company uses these non-GAAP financial measures internally to measure its ongoing business performance .

Page 3: Express-1 Expedited Solutions, Inc. AMEX: XPO

XPO Organizational Structure

Page 4: Express-1 Expedited Solutions, Inc. AMEX: XPO

Express-1, Inc. • Non-Asset Based Expedited Transportation

• Exclusive Use, Independent Contractor Fleet

• High Value, Time Critical and Priority Shipments

• Same Day Service

• Team of 70 Employees

• Buchanan, MI and Toledo, OH

• 2007 Revenue - $48 Million

Expedites Created by: Supply Chain Interruptions Special Handling Needs Manufacturing Constraints JIT Inventory Demands Absolute Dependability Needs

Page 5: Express-1 Expedited Solutions, Inc. AMEX: XPO

Bounce Logistics• Non-Asset Based Brokerage Operation

• High Growth Market Niche

• Focused on Premium Transportation Solutions

• Shares Customer Overlap with Express-1 and CGL

• Team of 5 Employees

• South Bend, IN

• Start-Up, 2008 Revenues $5 Million

Targeted Customers: Freight Forwarders (Domestic

and International) Integrated Carriers Airlines 3PL’s and 4PL’s Freight Brokers

Page 6: Express-1 Expedited Solutions, Inc. AMEX: XPO

Express-1 Dedicated• Asset Light, Dedicated Fulfillment Operation

• Supports One Primary Account – FORD

• Became Highly Profitable of Late

• Low Growth, High Returns

• Team of 55 Employees

• Evansville, IN

• 2007 Revenue - $5 Million

Operational Overview: 18 Trucks with 200 Dedicated Stops Daily Service to FORD Dealerships

within 250 Radius of Evansville Cross-Dock Operation for Other

Accounts

Page 7: Express-1 Expedited Solutions, Inc. AMEX: XPO

Concert Group Logistics (CGL)

• Non-Asset Based Network of 24 Stations

• Each Station Independently Owned

• Not Restricted by Size, Weight, Mode or Location

• Approximately 20 Employees

• Downers Grove, IL

• 2007 Revenue - $47 Million

Common Services(Domestic and International):

Time Critical (Immediate, Air Charter, Expedite)

Time Sensitive (Next Day, 2nd Day, 3rd Day) Staged Deliveries Cost Sensitive (Deferred, Full Load) Value Added (Documentation, Customs

Clearance, Banking Support)

Page 8: Express-1 Expedited Solutions, Inc. AMEX: XPO

Historical Highlights of XPO

Formed Express-1 Dedicated

Acquired Express-1, Inc. Acquired Concert Group Logistics (CGL)

Formed Bounce Logistics

•Formed Express-1 Dedicated in 2003.Dedicated Contract Services for Ford Motor Company

•Acquired Express-1, Inc. in 2004.Founded in 1989 by Mike Welch and Keith Avery.19 Year History of Profitability and Growth.

•Formed Bounce Logistics in 2008.Headed by Seasoned Management TeamHigh Growth Market Niche

•Acquired Concert Group Logistics (CGL) in 2008.Founded in 2002 by Dan Para and Gerry Post.History of Strong Growth and Profitability

Page 9: Express-1 Expedited Solutions, Inc. AMEX: XPO

XPO StrategyXPO Strategy

• Focus on Non-Asset Based Transportation

• Provide Premium Services Resulting in Premium Rates

• Committed to High Rate of Organic Growth

• Compliment Organic Growth with Select Acquisitions and Start-ups

Strong Revenue GrowthStrong Revenue Growth

18% Compounded Annual Growth Rate *

* CAGR Includes CGL on Proforma Basis

Page 10: Express-1 Expedited Solutions, Inc. AMEX: XPO

Year End 2007 Highlights

• Consolidated Revenue Growth > 25%

• Proforma Revenue Growth > 27%

• Consolidated Operating Income Up > 30%

• Proforma Operating Income Up > 28%

• EBITDA $4.4 Million or 8.2%

• Proforma EBITDA $6.0 Million or 6.0%

Proforma results include CGL

Page 11: Express-1 Expedited Solutions, Inc. AMEX: XPO

Strong Revenue Growth

Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007

($ In Millions) Proforma results include CGL

Page 12: Express-1 Expedited Solutions, Inc. AMEX: XPO

High Margins and Shrinking SG&A

Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007

Page 13: Express-1 Expedited Solutions, Inc. AMEX: XPO

Taking it to the Bottom Line

Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007

(In Thousands)

Tax BenefitOf

$1.1 Million

Not Adjusted for Tax Fully Tax Adjusted

Page 14: Express-1 Expedited Solutions, Inc. AMEX: XPO

Why Invest in XPO

• Experienced Management Team

• Low P/E Compared to Peers

• History of Strong EBITDA Growth

• Low Annual CapEx Requirements

• Strong Free-Cash Flow

• Significant ROI

• Annual Guidance Revenues > $120 Million (+20%) Gross Margin > 17% SG&A < 11% Net Income > $3.7 Million EPS $0.11 to $0.12, Fully Diluted

Page 15: Express-1 Expedited Solutions, Inc. AMEX: XPO

Questions

Investor Relations Contact:

Mark PattersonChief Financial Officer

Express-1, Inc.429 Post Road

Buchanan, MI 49107

(269) 695-2700

www.express-1.com

XPO XPO XPO XPO XPO XPO XPO XPO


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