Challenger acquires refrigeration carrier

Temperature-controlled fleet grows to 185 units as Lodwick transport begins operating under the Challenger Motor Freight banner

May 25, 2007 – CAMBRIDGE, ONTARIO  

Challenger Investments, the parent company of Challenger Motor Freight, today announced its intention to purchase Lodwick Transport, an Ontario based predominantly long haul refrigeration carrier.

“The acquisition of Lodwick Transport to the Challenger team is a defining moment for both our companies,” said Dan Einwechter, Chairman and CEO for Challenger Motor Freight. “From our perspective, we’ve been able to tap-into the entrepreneurial spirit of Gerry Lodwick and his team while at the same time giving them the depth and support of a much larger continent-wide enterprise.”

The acquisition comes at a time when traditional export markets are shifting, and the demands of the shipping public and Department of Homeland Security have placed immense pressures on Canadian carriers. Bringing Lodwick under the Challenger banner provides synergies to both companies and is indicative of the consolidation trend in the industry where mass is needed to meet the needs of both the client and the carriers’ regulatory commitments. The addition of Lodwick’s 60 tractors and 80 trailers will allow Challenger to expand its level of temperature controlled services to its clients.

“Challenger has proven that in a declining market they can sustain growth,” said Gerry Lodwick, President of Lodwick Transport. “With their backing, we will be able to achieve our goal of substantially increasing our reefer fleet while receiving their administrative, purchasing, and marketing support yet continue to operate Lodwick as a distinct company.”

Headquartered in Cambridge, Ontario, on 53 acres, Challenger employs in excess of 2,300 people and operates 1,500 trucks and 3,300 trailers. It is the largest privately owned truckload carrier in Canada and the fifth largest trucking company in the country. Challenger has been recognized repeatedly by its customers and the industry for outstanding service. In December 2006, they were given the honour of being one of Canada’s 50 Best Managed Companies for the sixth consecutive year. In addition to their new world-class facility in Cambridge, Ontario, Challenger has terminals in Montreal, Vancouver, and Toronto. Challenger additionally operates Elgin Motor Freight, Cam Hiltz Trucking, and MCX as unique separate entities.

Founded in 1941 by Cliff Lodwick Sr., Lodwick Transport is a third generation continent-wide trucking company, highly respected within the trucking industry. Sharing Challenger’s dedication to excellence in their employees, safety, and technology, Lodwick was the first Canadian carrier to offer remote temperature monitoring of freight on trailers for their customers.

After a period of due diligence, Challenger anticipates completing this transaction in July 2007.

For further information on Lodwick Transport, visit www.lodwicktransport.net.