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FOCUS
In the evolution of Tony's Express we have become a transportation company that has identified a specific core customer base that includes health & beauty, grocery, consumer products, medical products and stationary products. These customers all have similar requirements when it comes to providing delivery service. They all require appointments for delivery and they all require accurate sorting at the consignee's dock. When soliciting for new business Tony's Express only looks for customers who fit the above mentioned criteria.

Because of our success at developing such a large number of similar shippers we now have the capability to insure your freight will arrive on it's "Requested Arrival Date". Our volume affords us the opportunity to provide daily service to all of the major grocery, mass merchandise and drug store distribution centers. While other service providers are extolling the benefits of utilizing a consolidation program, to save money on your LTL rates, the difficulty always arises when your shipment has a R.A.D. date on a day when the consolidator doesn't have any other shipments to that customer. Today's transportation marketplace is driven more and more by the consignee's "Requested Arrival Date". If a transportation company's pricing is based on their ability to consolidate they are very likely to trap their shipments until they have a full truckload to deliver. It only makes sense that a single LTL delivery would create a fiscal loss for that kind of provider. Because we deliver as many as six trailers of consolidated LTL, into some individual customers on a daily basis, our customers will never have to worry if their freight will be delivered on the date that the buyer has requested. Our customers also get the benefit of extremely competitive pricing based on our ability to consolidate all of our customers LTL.

RELATIONSHIPS
In an effort to provide exceptional service for our customer's business, Tony's has developed a large number of "strategic alliances" with the majority of the grocery distribution, medical supply, mass merchandise, wholesale drug, foodservice and member club distribution facilities. These efforts have garnered us a preferred status with customers like Ralph's Grocers, Von's Grocers, Albertson's Grocery, Rite Aid, Walgreens, Walmart, Stater Brothers, Fleming Foods, Safeway Stores, Certified Grocers, McKesson Drug, Target Stores and many others. Tony's was one of the first carriers to provide advanced EDI 214 (3050 version) with Target Stores and we are one of only a few carriers that deliver product seven days a week. We have daily standing appointments with nearly every major consignee throughout the state. An example is we deliver to Wal-Mart six days a week, Monday through Saturday, at both Porterville and Red Bluff distribution centers.

Tony's is able to maintain these relationships through a consignee visitation program. Periodically we provide a list to our shippers of the facilities we visited and the people we spoke to. This constant communication process allows us to stay on top of any delivery issues before they turn into problems.

COMMUNICATION
Tony's Express has always tried to maintain a posture of supplying their customers with fast and concise information in whatever form it may be required. We currently are participating in EDI Transaction Sets, 204, 990, 997, 210 and 214 in several different versions. A new development, available by 2001 is our interactive website. Customers will be able to log on to our system and check shipment status as well as access shipping documents (proof of delivery and bill of lading) and request rate quotes. You'll even be able to print those documents right from your personal computer. Our goal is to be able to provide our customers with shipment status as close to "real time" as possible. Several of our larger customers are now requiring delivery information updates within 4 hours of delivery.

Tony's Express operates 24 hours a day and seven days a week. The benefits derived for our customers is that you will always be able to contact someone at our facility to help you and if you are utilizing a pool distribution process you can schedule your loads to arrive on the weekends. Because we can unload and prepare your orders for delivery you can gain the two weekend days in your order cycle.

VALUE ADDED SERVICES
Because of the complex nature of our customers deliveries, specifically the large number of SKU's and multiple purchase orders, Tony's Express has held fast to not participating in any drop trailer programs where the responsibility for sorting and unloading is performed by the consignee's personnel. Our past experience is that it is absolutely imperative that a Tony's Express representative, whether a Tony's Express driver or a Tony's Express lumper, be present at the time of unload. This policy has enabled us to keep our shortage and damage claims to inordinately low levels. Because some of our consignee's receiving policies creates difficult and lengthy unloads, for some customers; Tony's provides a pre-sort service prior to delivery. We separate each shipment by item and by purchase order on separate pallets. Time studies conducted by receiving departments have shown 45% savings in unloading time. The benefit to our customers is that the receiving departments actually like to work our loads because their personal productivity numbers go way up and we get preferential treatment at the point of delivery.

Another valuable service that Tony's Express provides is our willingness to deliver during off-hours. Several of the consignees we deliver to now only allow carriers to make deliveries during the evening or early mornings. We currently provide evening delivery service to Target Stores, Ralph's Grocery, RiteAid in Woodland and Lancaster, CA, Stater Brothers Markets, McKesson Drug, Amerisource, Safeway Stores and many others. We are even making deliveries on weekends as well. Our experience is that no other carriers are as willing as Tony's is to meet the needs of our shipper's customers.

Increased Customer Sales - Because of Tony's Express' ability to provide on-time, hassle-free deliveries we have had the buyers from several major grocery chains tell us that they were actually inclined to buy more products from those companies who utilized our service.

EFFORT
Several of Tony's shipping customers have programs that recognize the effort that Tony's Express puts forth in our pursuit of delivery service excellence. Tony's has received "Carrier of the Year" honors, for the last three consecutive years from Warner-Lambert, Inc., Colgate-Palmolive and The Gillette Company. We also won the inaugural "Carrier of the Year" award from the Avery Dennison Corporation in 1997 and again in 1998 and 1999 as well as the DEP Corporation in 1999. We are very proud of these accomplishments and are hopeful that we might get the opportunity to show what we can do for your company.

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