New Contracts Create 400 Jobs

HAYS PLC 18 October 1999 HAYS DISTRIBUTION SECURES £50 MILLION WORTH OF NEW CONTRACTS New National Distribution Centre will create at least 400 new jobs Hays Distribution has won three new contracts in its growing convenience food service operation with Kentucky Fried Chicken (KFC), Yates Wine Lodge and Haagen Dazs Cafe. The largest of these is for KFC which is scheduled to start in March 2000 and will run for 5 years. Hays Distribution will operate a full supply-chain management system for the food products sold through KFC, including distribution to all KFC outlets.The contract will be serviced both from Hays existing site at Dagenham and a new purpose built National Distribution Centre (NDC) at Coalville in Leicestershire. In addition 3 satellite distribution centres will provide a complete network throughout the UK. Hays Distribution will place orders with KFC suppliers using Hays own in house Logistar system and store products in the two major distribution centres. KFC's 450 outlets will be able to order products using a further Hays company, namely Hays Customer Solutions call centre. The new NDC will create a minimum of 400 jobs and will be used to service both the existing BP, as well as the new KFC contract thus providing synergy benefits for both customers. It will also have the capacity to accommodate other customers as required. The Yates Wine Lodge and Haagen Dazs Cafe contracts are both for 3 years and involve all aspects of supply chain management. Again using Hays own systems software, Hays Distribution will make deliveries to over 100 Yates' Wine Lodges and the 72 Haagen Dazs Cafe outlets. By operating the contracts together both customers will receive synergy benefits. These three new customers were won as a direct result of our experience gained from operating the BP/Amoco and Shell forecourt shop contracts. Commenting, Ronnie Frost, Chairman of Hays plc said: 'I am delighted that KFC, Yates and Haagen Dazs Cafe have chosen to award their prestigious contracts to Hays Distribution, which further establishes us as a major player in the convenience food service market. The KFC contract will give us the opportunity to demonstrate the benefits of integrating our logistics, IT and call centre services to provide a complete solution to our customers' needs. The new NDC will provide excellent synergy benefits for BP/Amoco and KFC and other potential customers with similar demands. We have developed an excellent reputation for providing highly complex distribution schedules to major blue chip companies and this is a very positive start to the current year.' For further information, please contact: Ronnie Frost Chairman, Hays plc 01483 302 203 Andrew Grant Brunswick 0171 404 5959 Corinne Daniels

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