Transportation Security Administration

January 23, 2004

The Transportation Security Administration (TSA) continues to implement critical elements of its air cargo strategic plan as a result of 9/11 and the ongoing threat of terrorist attacks. Just as in passenger air travel, there is a potential for shipment delays due to the new security mandates that affect the entire cargo industry. We are adjusting our processes to ensure procedures are in place to help minimize any disruption to the flow of business while meeting the new security mandates.

Below is an update from American Airlines Cargo's security program which represents the approach carriers are using in addressing security concerns. The new processes are intended to help move your freight safely with minimum delay. We are working with our carrier partners to ensure seamless handoff but as these processes evolve, the possibility for delay increases.

UTi will keep you informed as we receive other security updates. The changing world events mean our business is no longer just moving freight predictably. Security is now an ongoing priority for our customers and UTi. We are now making sure freight moves both “predictably” and “safely.”

Please contact your local UTi office with any questions.

Regards,

Mike O'Toole
UTi Worldwide Inc.
Vice President, Predictable Performance

January 15, 2004

SECURITY UPDATE

Dear Valued Customer:

I would like to take a moment to follow up on our communication that was sent prior to New Year’s Day. The new security mandates from the TSA have an effect on the entire cargo industry. The following are a few of the issues in which we will need your support in order to minimize the impact on the flow of business.

One facet of the new security program is the possibility that any shipment from any customer will be subject to inspection. We will be using a variety of inspection methods,
determined on a local basis at each U.S. Cargo terminal. As mentioned before, once at the dock, your drivers will be required to provide either one form of government issued photo ID, or two forms of non -photo ID, at least one of which must be government issued. Also, a full and complete description of the shipment contents (either on the air waybill or as a separate manifest) will help prevent acceptance delays or outright shipment refusals. In some locations, we will be asking your drivers to participate in the opening of shipments to facilitate the inspection process. This will include providing any special tools or equipment needed to open and reseal your cartons or crates. Otherwise, once the inspection is completed, we will re -seal the shipment with AA Cargo tape.

Over the next two weeks, we will be evaluating these processes and their overall impact on our operation as well as our ability to maintain our service standards under the new program. Then we will identify any of our handling procedures that require adjustment. During this period, please allow for extra time beyond our standard cut -off times when tendering shipments to avoid possible delays. I am also very interested in receiving your feedback as we review our processes.

Although we will not be changing cut -off times for the majority of our products at this moment, these new procedures will result in one adjustment. Effective immediately, Priority Parcel Shipments tendered at the airport passenger terminal (except for BOS, DFW, JFK, LAX, LGA, ORD, SFO) will have the same check -in time as for passenger, 60 minutes before flight departure.

Thank you for your continuing support and understanding of this issue. Please contact your local sales office or Global Account Manager with any questions.

	Sincerely,
	Mark A. Najarian Vice President Cargo Sales & Marketing