CTI LOGISTICS LIMITED — Capital/Financing Update 2003

Oct 6, 2003

ABN 69 008 778 925

328 Aberdeen Street West Perth WA 6005

Postal Address PO Box 400 West Perth Mestern Australia 6872 Telephone (08) 9227 6333 Facsimile (08) 9227 8000 Email corporate@ctilogistics.com Web www.ctilogistics.com

7 October 2003

MEDIA RELEASE

CTI Logistics Limited has accepted an offer from Allied Skytrax Pty Ltd for the CTI Logistics local transport businesses in Brisbane, Sydney, Melbourne and Adelaide.

Allied Skytrax Pty Ltd is part of the Allied Express Transport Group, the largest privately owned courier group in Australia. Group principals Colin McDowell and Michelle McDowell intend to continue to run the businesses under the CTI banner.

In Western Australia, CTI Logistics will represent the Allied Express Transport Group in addition to its own brands and trading names.

Consideration for the sale will be \$8.05 million, of which \$3.15 million will be paid on a deferred basis. Depending on final adjustments the disposal is expected to be broadly in line with book values.

The transaction follows a review of the businesses and of the Company's debt levels. Following the transaction, revenue will decline by approximately \$24 million, less the revenue picked up in Western Australia, but the transaction is not expected to have a significant effect on overall profitability in the current financial year.

DAVID WATSON EXECUTIVE CHAIRMAN