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December 23, 1998 9:15 AM, EST

READING, Pa. — Penske Logistics was named lead logistics provider for Whirlpool Corp.’s regional distribution system.

Penske will be responsible for Whirlpool’s Quality Express network, which distributes finished products to builders, homeowners and retailers nationwide. Penske will operate warehouses and oversee dedicated and common carrier transportation services. The company will also manage Whirlpool’s private fleet of 450 tractors and 1,200 trailers.

Tom Wright, general manager of logistics for Whirlpool, said the contract will allow the company to optimize transportation capabilities while cutting costs.

Penske will mix equipment and facilities with other Penske accounts and provide Whirlpool with flexibility based on changing volume conditions, Mr. Wright said.

A transition from existing operations is expected to be completed over the next six to 12 months. The Penske contract is effective until the year 2005.