Profile: Ryder System, Inc. (R)

Ryder System, Inc. (Ryder) is a provider of transportation and supply chain management solutions. The Company operates in three segments: Fleet Management Solutions (FMS), which provides full-service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services throughout North America, and in Europe, South America and Asia, and Dedicated Contract Carriage (DCC), which provides vehicles and drivers as part of a dedicated transportation solution in the United States. On February 2, 2009, it acquired the assets of Edart Leasing LLC (Edart), which included Edart’s fleet of approximately 1,600 vehicles.

On August 29, 2008, it acquired the assets of Gordon Truck Leasing (Gordon), which included Gordon’s fleet of approximately 500 vehicles. On December 19, 2008, the Company completed the acquisition of substantially all of the assets of Transpacific Container Terminal Ltd. (TCTL) and CRSA Logistics Ltd. (CRSA) in Canada, as well as CRSA Logistics operations in Hong Kong and Shanghai, China.

Fleet Management Solutions

The Company’s FMS product offering includes primarily contractual-based, full-service leasing and contract maintenance services. Ryder also offers transactional fleet solutions, including commercial truck rental, maintenance services and value-added fleet support services, such as insurance, vehicle administration and fuel services. In addition, the Company provides its customers with access to a selection of used trucks, tractors and trailers through its used vehicle sales program. The Company’s FMS customers in the United States range from small businesses to large national enterprises. These customers operate in a variety of industries, including transportation, grocery, lumber and wood products, food service and home furnishings. At December 31, 2008, it had 636 locations in 49 states and Puerto Rico and operated 217 maintenance facilities onsite at customer properties. Under a full-service lease, Ryder provides vehicle maintenance, supplies and related equipment necessary for operation of the vehicles, while its customers furnish and supervise their own drivers, and dispatch and exercise control over the vehicles.

The Company’s contract maintenance customers include its full-service lease customers, as well as other customers that want to utilize its network of maintenance facilities and trained technicians to maintain the vehicles they own or lease from third parties, usually a bank or other financial institution. The contract maintenance service offering is designed to reduce vehicle downtime through preventive and predictive maintenance based on vehicle type and time or mileage intervals. The service also provides vehicle repairs, including parts and labor, 24-hour emergency roadside service and replacement vehicles for vehicles that are temporarily out of service. These vehicles are serviced at Ryder’s own facilities. Ryder’s commercial rental fleet provides additional vehicles to its full-service lease customers to handle their peak or seasonal business needs. In addition to vehicle rental, the Company extends to its rental customers liability insurance coverage.

The Company’s full-service lease and contract maintenance customers periodically require additional maintenance services that are not included in their contracts. Additional maintenance services may arise when a customer’s driver damages the vehicle and these services are performed or managed by Ryder. Some customers also periodically require maintenance work on vehicles that are not covered by a lease or maintenance contract. The Company may provide service on these vehicles and charge the customer on an hourly basis for work performed. This contract-related maintenance work is obtained by Ryder due to its contractual relationship with the customers. The service provided is in addition to that included in their contractual agreements.

Ryder’s offer fleet support services, such as insurance, safety, fuel, administrative, environmental management and information technology. The Company sells its used vehicles at one of its 57 sales centers throughout North America, at its branch locations or through its Website at www.Usedtrucks.Ryder.com.

Supply Chain Solutions

Through its SCS business, the Company offers a range of logistics management services that are designed for a customer’s global supply chain. Ryder’s SCS product offerings are organized into three categories: professional services, distribution operations and transportation solutions. These offerings are supported by a variety of information technology solutions, which are an integral part of its other SCS services. At December 31, 2008, the Company had 102 SCS customer accounts in the United States. These customers operate in a variety of industries, including automotive, electronics, high-tech, telecommunications, industrial, consumer goods, paper and paper products, office equipment, food and beverage, and general retail industries. Ryder’s largest customer is General Motors Corporation (GM).

Ryder’s core SCS business operations in the United States revolve around its customers’ supply chains and are geographically located. Along with those core customer specific locations, the Company also focuses certain logistics capabilities in locations not associated with specific customer sites. Ryder’s carrier procurement, contract management and freight bill audit and payment services groups operate out of its carrier management center, and its transportation optimization and execution groups operate out of its logistics centers, both of which have locations in Novi, Michigan and Fort Worth, Texas.

The Company’s SCS business offers a variety of services that support every aspect of a customer’s supply chain. The solution may include both a network design that sets forth the number, location and function of key components of the network and a transportation solution that optimizes the mode or modes of transportation and route selection. In addition to providing the distribution and transportation capability necessary to implement the supply chain solution, Ryder’s SCS representatives can coordinate and manage all aspects of the customer’s supply chain provider network.

Ryder’s SCS business offers a range of services relating to a customer’s distribution operations designing a customer’s distribution network to managing the customer’s existing distribution facilities or a facility it acquires. Services within the facilities generally include managing the flow of goods from the receiving function to the shipping function, coordinating warehousing and transportation for inbound and outbound material flows, handling import and export for international shipments, coordinating just-in-time replenishment of component parts to manufacturing and final assembly and providing shipments to customer distribution centers or end-customer delivery points. Additional value-added services, such as light assembly of components into defined units (kitting), packaging and refurbishment are also provided.

The Company’s SCS business offers services relating to all aspects of a customer’s transportation network, including equipment maintenance and drivers. Ryder’s team of transportation specialists provides shipment planning and execution, which includes shipment optimization, load scheduling and delivery confirmation through a series of technological and Web-based solutions. In addition, the Company’s SCS business provides customers, as well as its FMS and DCC businesses with capacity management services that are designed to create load-building opportunities and minimize excess miles.

Dedicated Contract Carriage

Through its DCC business segment, Ryder combines the equipment, maintenance and administrative services of a full-service lease with drivers and additional services to provide a customer with a dedicated transportation solution. Such additional services include routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support, including on-board computers and other technical support. At December 31, 2008, it had 182 DCC customer accounts in the United States.