RNS Number:5008S
Exel PLC
26 November 2003


                       EXEL ANNOUNCES AN EXCEPTIONAL GAIN

 Initial public offering of Sirva Inc will realise around $50m in cash in 2003
               with significant potential benefits in the future


(London, UK, 26 November 2003) Exel, the world leader in supply chain
management, announced today that, following the initial public offering (IPO) in
the US of Sirva Inc, the owner of North American Van Lines, the Group would be
receiving cash of some $50m in 2003. In addition Exel would be retaining
interests in Sirva Inc, representing around 6.3m shares and a convertible
warrant for a further 2.8m shares, for at least six months. Based on the IPO
price and net of costs, the retained stake would be valued in the market at
circa $130m.

In 1999 Exel disposed of its Allied Pickfords Moving Services business to the
parent company of North American Van Lines for $400m in cash together with a
minority equity interest, the current carrying value of which is $34.5m.

Prior to the IPO Exel had equity interests representing 12.9% of common stock,
$24.5m of preferred stock bearing a 13% coupon and a warrant to subscribe for up
to a further 2.8m shares at a price of $12.62 per share. As a result of the IPO
Exel will redeem its preferred stock and receive the outstanding interest
payable, together with selling 1.0m common stock. The IPO price has been set at
$18.50 per common share. Net of costs Exel should be receiving cash of around
$50m before the year end.

As with other parties involved in the IPO process Exel will be unable to sell
any part of its retained holding for a period of six months. Based on the
initial public offering price the residual shareholding would be valued at circa
$130m. Exel could be called upon for up to an additional 0.4m shares which would
result in a further cash inflow of around $7m being recorded in 2003. Given the
unpredictable nature of equity markets the Group will continue to adopt a
cautious view on the future realisable value.

Commenting on the announcement, John Allan, Chief Executive of Exel said: 

"This is clearly very good news. We will be retaining around 6.3m shares and a
convertible warrant for a further 2.8m shares into 2004. We will review the best
strategy for this investment and take the appropriate action after the lockup
period."

"Exel is performing well at this time and securing new business to underpin our
expectations of long-term growth. The IPO of Sirva Inc unlocks further value for
Exel's shareholders and will add to the financial strength of the Group going
forward."

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For further information contact:

John Dawson                                    +44 7733 301986
Director of Corporate Affairs
Exel plc

Martin Leeburn / Lydia Pretzlik                +44 20 7379 5151
The Maitland Consultancy






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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