CaseStack and AtomicBox to Merge; Industry Leaders Combine Expertise to Expand and Enhance Supply Chain Service Offerings

SANTA MONICA, Calif. --(Business Wire)-- May 19, 2006 -- CaseStack, Inc. and AtomicBox Logistics, in a move to expand their logistics and supply chain capabilities, today announced the merger of the two companies. This merger provides an outstanding opportunity for both AtomicBox and CaseStack to combine their operational expertise and market coverage in strengthening customer service and quality execution.

The merger will combine complementary geographies: AtomicBox's significant Midwest and West Coast presence augments the CaseStack footprint in Los Angeles, Portland, Chicago, Dallas, New Jersey, and Atlanta. The two companies have led the industry toward something innovative: retail-driven consolidation and retail compliant fulfillment. Retailers and CPG manufacturers will now have even more ways to reduce costs and improve service levels by working with the new combined entity, which will take collaboration and technology to a new level.

CaseStack, Inc., a California-based logistics outsourcing company, provides a unique offering of web-based logistics technology, a national warehousing network, and industry-leading transportation consolidation programs. CaseStack has a fast growing, broad client base in the consumer packaged goods (CPG) industry. AtomicBox Logistics, an Ohio-based international third party logistics company, provides tough-to-execute, high value-added warehouse services like pick & pack fulfillment serving customers within general merchandise, consumer and commercial products. AtomicBox operations are located in Cleveland, Atlanta, Los Angeles and Shenzhen, China.

The combined solutions of CaseStack and AtomicBox will bring increased supply chain technology, transportation consolidation programs and a larger regional warehousing footprint for current and prospective customers. The China distribution center provides both companies with the ability to further expand the service offerings at the front-end of the supply chain to include inbound logistics consolidation and value-added services from China -- the growing manufacturing point for many companies.

CaseStack provides a strong capital base with over $20 million in private equity funding from groups including Clarity Partners, Kline Hawkes, Blumberg Capital, and Garage Technology Ventures. This will enable management to supplement aggressive organic growth with strategic acquisitions of regional warehousing companies focused on the CPG industry. The merger brings additional financial strength and depth with the participation of the largest AtomicBox equity shareholder, Development Capital Ventures, who is continuing its investment in the combined entity.

"This is the story of two great teams that share an identical vision: people who believe in collaborating with retailers and who understand the importance of leveraging technology," stated Dan Sanker, President & CEO of CaseStack. CaseStack was recently named the 37th fastest-growing private company by Inc Magazine. Sanker added, "The merger gives us additional critical mass; something we intend to translate into more benefits for clients."

"We look forward to continuing our long-term investment by merging AtomicBox with the shareholders of CaseStack," stated Tom Bianco, CEO of AtomicBox. "We are striving for a seamless merger of two extremely competent and highly valued companies."

The two companies will focus on leveraging their respective strengths across the combined entity.

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