SAFEWAY INC. SIGNS AGREEMENT WITH CAROLINA LOGISTICS SERVICES TO PROCESS UNSALEABLES

Winston-Salem, NC  -- February 1, 2004--Carolina Logistics Services today announced the signing of a reverse logistics agreement with the Safeway Inc. Seattle Division, under which Carolina Logistics Services will process all product returns.
"We continue to be very impressed with CLS's ability to effectively manage our program on a multi-Divisional basis," said Bruce Hayworth, Director of Product Reclamation for Safeway Corporate in Pleasanton, CA.   Mark Doughton, President, Carolina Logistics Services stated, "Safeway's Seattle Division represents a significant new client for CLS and we are pleased to now service all domestic Divisions of Safeway, Inc. We are looking forward to meeting their reverse logistics needs and providing Safeway Corporate valuable comparative information across all Divisions in an effort to better manage their returns program." 
CLS currently provides comprehensive returned goods management services to seven Safeway Divisions, including Von's, Safeway-Portland, Safeway-Phoenix, Randall's, Dominicks, Safeway-Denver, Safeway-NorCal and now Safeway-Seattle. Hayworth also added, "The information management toolset that CLS provides Safeway is state-of-the-art, and really let's us focus on problem areas throughout the supply chain." 
Carolina Logistics Services, an Inmar Inc. operating company, is the leading U.S. provider of reverse logistics, returned goods management and warehouse services.  CLS clients include the nation's largest grocery retailers and wholesalers, drug store chains and mass merchandisers.  For more information about CLS visit our website at www.cls.inmar.com    
Contact:  Thomas Marcellino
Vice President, Sales
Carolina Logistics Services
(800) 765-1277
tom.marcellino@inmar.com