EXEL AND FUJITSU ANNOUNCE AGREEMENT IN PRINCIPLE
FOR EXEL TO ACQUIRE FUJITSU LOGISTICS LTD

(London, UK - 16 February, 2004) -- Exel, the UK-based, world leader in supply chain management and Fujitsu Limited, a leading provider of customer-focused IT and communications solutions for the global marketplace, have today announced that they have agreed in principle for Exel to acquire Fujitsu's wholly owned subsidiary company, Fujitsu Logistics Ltd (FJL).

FJL provides a range of logistics services to Fujitsu companies in Japan. The proposed agreement supports Fujitsu's strategy to enhance the management of the global supply chain for its products, by selecting a logistics outsourcing partner with whom it can develop a truly global relationship. Through the partnership, which would include an outsourcing agreement under which FJL, as an Exel company, would continue to provide logistics services to Fujitsu in Japan, Fujitsu will enhance the competitiveness of its supply chain management capabilities for both domestic and global customers. All FJL staff will be transferred to Exel.

For Exel, this move represents a continuation of its strategy to build its contract logistics business across Asia Pacific and to strengthen its position in the important Japanese market, the second largest economy in the world. Exel will be poised to offer more extensive and higher value-added services to its many customers through the combination of FJL's logistics expertise in the Japanese IT industry with its own global network and advanced technologies. The acquisition will triple the size of Exel's current operations in Japan.

John Allan, Chief Executive, Exel commented, "Over the past 30 years that Exel has operated in Japan, it has developed a strong position in international freight management. Recently it has developed domestic contract logistics services for technology sector customers and sees significant opportunity to expand this business. This acquisition of FJL, with its combination of nationwide distribution and service centres, together with extensive road transport operations and a skilled workforce, will provide an excellent platform from which Exel can achieve the growth it is seeking in the region."

Hiroaki Kurokawa, President of Fujitsu Limited, stated that "To date, FJL's focus has been the provision of domestic logistics services exclusively to Fujitsu companies. Going forward, however, FJL's technical expertise and service offering will be further expanded and strengthened through its effective integration into Exel's global network. At the same time, I expect that Fujitsu's global supply chain management capabilities will be greatly enhanced as a result of this alliance, resulting in reduced product cost and improved service for our customers."

Fujitsu and Exel will continue discussions on the details of the agreement, which they expect to conclude by the end of April this year.

Notes to Editors - Exel
Exel is the global leader in supply chain management, providing customer-focused solutions to a wide range of manufacturing and retail industries. Exel's comprehensive range of innovative logistics solutions encompasses the complete supply chain from design and consulting through freight forwarding, warehousing and distribution services to integrated information management and e-commerce support.

Exel, a UK listed, FTSE 100 company, in 2002 had turnover of £4.7 billion (over US$7 billion) and employed around 67,000 people in 1,600 locations in over 120 countries worldwide. Exel's customers include over two thirds of the world's largest, quoted non-financial companies. More information is available at www.exel.com.

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About Fujitsu
Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, highly reliable computing and telecommunications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$38 billion) for the fiscal year ended March 31, 2003. For more information, please see : http://www.fujitsu.com/.

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