e-Commerce B2B and B2C Fulfillment Solutions Designed to Provide the Successful Back-End for On-Demand Delivery for Clients' e-business Needs

Ryder System, Inc. (NYSE:R), a leader in logistics and transportation management solutions worldwide, today unveils an Internet-based fulfillment solution - "e-Channel Solutions" (ECS). e-Channel Solutions is one of several rapidly evolving strategic e-Commerce business-to-business (B2B) and business-to-consumer (B2C) service offerings designed to strengthen Ryder's competitive position and provide clients cost-saving solutions to succeed in today's technologically driven world.

"Ryder saw the quickly evolving e-marketplace as a huge opportunity and one that clearly fit with its long-term strategy of continuing to launch value-added solutions to meet emerging market needs," said Ryder's President and Chief Operating Officer, Gregory T. Swienton. "By focusing on the back-end of the fulfillment process, Ryder can provide a full suite of services and solutions with a seamless integration of transportation, supply-chain and information systems."

Ryder's e-Channel Solutions provides a complex, global network of e-Commerce capabilities for on-demand delivery to consumers and facilitates on-line replenishment from Distribution Centers (DC) to a network of neighborhood depots, then unattended or attended delivery to a consumer's home. Ryder will manage the entire fulfillment channel for its clients - operating the DCs, managing the transportation of goods to the neighborhood depots, coordinating the "last mile" delivery through Ryder's network of couriers and leveraging the infrastructure to facilitate returns.

According to Forrester Research, online purchases by U.S. consumers hit $20 billion in 1999 and will grow to $184 billion by 2004, or seven percent of total retail spending that year.

"Web businesses are re-defining the traditional supply chain functions and integrating complex, knowledge-sharing systems that provide seamless connectivity between product, price and delivery with suppliers and customers," said Mike Shelton, senior vice president of Sales, Marketing and e-Commerce for Ryder. "Ryder's well-developed logistics and inventory management expertise provides the solid foundation needed to provide the fulfillment strategies required for successful on-line sales delivery."

The fulfillment services will initially serve over 80 percent of the U.S. population within 72 hours via over-the-road transportation from the DCs. Ryder will launch the ECS service this year from DC facilities in Alliance, Texas; Cucamonga, California; and Odenton, Maryland.

Ryder will hold client inventory at the DCs and offer a full-range of value-added services including gift-wrapping and card insertion. Ryder will provide fulfillment through e-Channel Solutions to clients throughout the 2000 holiday season. e-Channel Solutions, which will be launched in phases beginning in July 2000, is enabled through Viewlocity messaging and Ryder's on-line support services - RyderShip.com, RyderTrac.com and RyderFlow.com.

- RyderShip.com is an Internet-accessible, electronic commerce-based system that allows Ryder to match shippers and carriers. Shippers are provided a simplified method of procuring quality transportation services at competitive rates and carriers gain improved efficiency, consolidated billing and optimum utilization of shipments.

- RyderTrac.com provides Internet-accessible shipment status anytime/ anywhere, providing real-time knowledge of shipments as they move through the supply chain.

- RyderFlow.com is a web-enabled system that provides a client the ability to access products, inventory order and receipt information from warehouses.

Ryder provides a continuum of leading-edge logistics, supply chain and transportation management solutions worldwide. Ryder's product offerings range from full-service leasing, commercial rental and programmed maintenance of vehicles to integrated services such as dedicated contract carriage and carrier management. Additionally, Ryder offers comprehensive supply chain solutions, lead logistics management services and e-Commerce solutions that support clients' entire supply chains, from sourcing of inbound raw materials through distribution and delivery of finished goods. Ryder currently serves client needs throughout North America, in Latin America, Europe and Asia.

Fortune magazine ranked Ryder as the most admired company in the highway transportation industry in 1997 and 1998 and second in 1999. In 2000, Ryder received a higher overall rating than any of its competitors in the Fortune survey. For the second consecutive year, Inbound Logistics magazine recognized Ryder in 1999 as the top third-party logistics provider.

Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index. In 2000, Ryder ranked 309th on the Fortune 500 list and 332nd on the Forbes 500.

Ryder Note:

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements herein should be evaluated with due consideration given to the many uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, among others, the competitive pricing environment applicable to the Company's businesses, changes in clients' business environments and greater than expected expenses associated with the Company's activities.