01/07/05 Buckeye Diamond Logistics and CHEP Settle Dispute.

Agreement Reached to Work Together and Deliver Benefits to the Pallet Industry

Buckeye Diamond Logistics, Inc. and CHEP USA have settled their four-year old lawsuit. Representatives from Buckeye and CHEP described the agreement as a fair and equitable settlement for both Buckeye and CHEP and one from which the entire pallet industry will benefit.

Buckeye Diamond Logistics, Inc., had brought a suit against CHEP claiming, among other things, that CHEP pallets that had come into possession of Buckeye no longer belonged to CHEP and were the property of Buckeye.

An Ohio district court previously dismissed Buckeye's other claims against CHEP, including all claims related to the ownership of pallets, but allowed Buckeye to pursue a claim for compensation for the recovery of CHEP pallets. The remaining issues regarding compensation for recovery of CHEP pallets, and CHEP's claims against Buckeye for damages, were set to be decided in court this week.

Buckeye and CHEP's agreement will enhance the existing CHEP Asset Recovery Program (ARP) for the benefit of Buckeye, CHEP and the pallet recycler industry.

"We are very pleased to reach an agreement with Buckeye and its Chairman, Sam McAdow, Sr. We recognize this lawsuit was a consideration in developing our original Asset Recovery Program and appreciate the help that Mr. McAdow has provided in putting together our new fuel surcharge," stated Elton Potts, Senior Vice President, Asset Management, CHEP USA.

As part of the agreement with Buckeye, CHEP will modify its Asset Recovery program to include a fuel surcharge to offset the increased cost of fuel. Details of the surcharge will be announced via letter to the recyclers shortly, but will be effective immediately.

Mr. McAdow added; "I am proud to resolve our dispute in a manner that will benefit my pallet industry colleagues. With the addition of the fuel surcharge, we can now endorse and will participate in the CHEP Asset Recovery Program and see no benefit to ourselves or the industry in continuing to litigate with CHEP".

The agreement will help CHEP recover its assets that come into possession of pallet recyclers and offers fair compensation to the pallet recycling industry.

About Buckeye Diamond

Buckeye Diamond Logistics is an Ohio-based company that recycles and sells white-wood pallets. Buckeye is a pallet industry leader providing services to the consumer packaged goods industry as well as to industrial companies.

About CHEP

CHEP is the global leader in pallet and plastic container pooling services serving many of the world's largest companies. CHEP handles pallet and container supply chain logistics for customers in the consumer goods, produce, meat, home improvement, beverage, raw materials, and automotive industries. With global partners that include Wal*Mart, Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for "Handling the World's Most Important Products. Everyday."

Contacts
CHEP USA
Per Ohstrom, 407-355-6491
Director, Marketing
per.ohstrom@chep.com
or
Buckeye Diamond Logistics, Inc.
Sam McAdow, Sr., 937-462-8361
Chairman
buckwoodp@aol.com