TCT Logistics contemplates sale of company, ousts CEO Ken Lucas

CALGARY (Jan. 23, 2002) — TCT Logistics, one of Canada’s largest distributors of food and general freight, yesterday said it has overextended credit limits with its senior lender, GMAC Commercial Credit Corp. Canada, and is reviewing its financial options, including a sale of the business.

The company also said president and chief executive officer Ken Lucas has been replaced by Donald W. Turple, the chief financial officer at Tri-White Corp., from which TCT Logistics acquired Tri-Line Expressways in 2000.

Lucas remains a significant shareholder of TCT and a director.

Lucas led the company through a period of mercurial growth through acquisition, with annual revenues rising from $8 million six years ago to nearly $300 million expected in 2001.

TCT Logistics — publicly traded on the Toronto Stock Exchange under the symbol TLI — employs 2600 people, controls almost 4000 pieces of equipment, and operates 31 million square feet of warehousing space.

In 2000, the company acquired Tri-Line, Daily Motor Freight, and the dry van and reefer assets of Kleysen Transport. TCT sold Daily to TransForce of Montreal last November.

In 1998, TCT bought the grocery warehousing business of Livingston Group and entered the supply-chain management business.