JefPower Template

1
Management Presentation to Investors
January 2007
2
Overview

• Velocity is the nations largest provider of time
  definite regional delivery solutions
• We are national in scope
• - Offering standardization and reduced
  complexity across a customers footprint
• And local in focus
• - Delivering to a specific person within
  facilities everyday
• And we have the financial statements that go with
  that status
• - Strong balance sheet
• - Strong income statement
• - Strong cash flow

3
The Investor Opportunity

• We target a large, growing market of customers
  increasingly seeking outsourced solutions and who
  are currently served by a highly fragmented set
  of local and regional players - not FedEx, DHL,
  and UPS
• We are building a national brand in an unbranded
  local delivery marketplace
• We are creating a new category in logistics
• - Time Definite Asset Light 3PL
• - Independent Contractors provide flexibility
  and guaranteed metrics
• - Where you want it, when you want it
• We have built a competitive advantage through
  significant investments in technology critical to
  supply chain management
• Package tracking
• Electronic proof of delivery
• Route optimization
• Strong balance sheet
• 20M in excess cash
• No short term debt

4
The Investor Opportunity (continued)

• Velocity has acquired CDL creating the largest
  provider of time-definite services in the U.S.
• 440 million in revenue with significant growth
  opportunities
• Dramatic EBITDA improvement through consolidation
  of corporate and field organizations and routing
  efficiencies that will bring CDLs 18.5 gross
  margin in line with Velocity's 28.5.
• This is a merger of two highly complementary
  businesses that
• Operate similar independent contractor business
  models..
• With a common industry focus..
• In overlapping locations
• The combined entity will have the operating
  leverage to accomplish this growth with minimal
  additional fixed costs

Acquisition leads to attractive long-term
valuation metrics through increased market value
and could lead to an eventual sale to a strategic
buyer
5
Already On Track Driving Value Creation
( in Millions of annualized EBITDA per Alvarez
and Marsal diligence)
Corporate GA Savings
Field/Network Operations Savings
Route Efficiencies

• Elimination of redundant management
• Elimination of public company expenses
• Reduction of insurance

• Reduced occupancy expense in overlapping markets
• Reduced facilities personnel
• Rationalization of management and supervisory
  overhead
• Full conversion of employee drivers to ICs
• Consolidation of line haul operations
• Replacement of CDLs 3rd party agents With
  Velocity ICs

• Lower driver pay through centralized driver pay
  management
• Lowering cost per stop through Increased route
  density

Projected 38 total annualized savings
11
11
16
Velocity has captured savings in these areas as
part of its own restructuring
6
Capitalizing on Driver Pay and Purchased
Transportation Reduction
Driver pay and purchased transportation of
revenue
Quarterly
June 2006
Opportunity to leverage Velocitys variable cost
and IC model to reduce CDL driver pay
7
Driving the Order to Cash Cycle
Velocity Express Accounts Receivable Opportunity
The sale doesnt end until the satisfied customer
pays.
8
The Velocity Team
Experience
Name / Title
Experience
MANAGEMENT

• 30 years
• Hertz international, Hertz Worldwide, Holland
  America Line, National Car Rental

Vincent A. Wasik Chairman and CEO

• 30 years
• Brinks Worldwide, National Car Rental, Hertz UK,
  Hertz US, Budget Car and Truck Rental

Jeffrey T. Hendrickson President and Chief
Operating Officer

• 20 years
• Veredex Logistics, CDL

Drew Kronick Executive V.P., Business Development

• 30 years
• Executone, Thomson, Monsanto, Pfizer

Ted Stone Chief Financial Officer

• 20 years
• NetGateway, Wedbush Morgan

David J. Bassett Parkins Chief Admin. Officer /
Chief Technology Officer
SENIOR ADVISORS

• 32 years
• UPS

Jack Duffy Senior Advisor
Dolf DiBiasio Senior Advisor

• 32 years
• McKinsey

Seasoned, accomplished team with deep industry
experience
9
Significant Opportunity for Value Creation
EBITDA PER FULLY DILUTED SHARES (119MM)
EBITDA

• 33 million
• 38 million
• 43 million
• 48 million
• 53 million
• 59 million

• 0.28
• 0.32
• 0.36
• 0.40
• 0.44
• 0.50

Defining a new category in logistics a powerful
economic model in an underserved market
10
Velocity Express Income Statement 3 Months Ended
September, 2006
1

• Combined operations provide starting point for
• Revenue growth
• Gross margin improvement
• Operating expense reduction
• Solid profitability in calendar 2007

1 See 8-K filed 11/21 for Bridge to Adjusted
EBITDA
11
Velocity Express Balance Sheet September 30,
2006

• CDL merger related financing produced a strong
  balance sheet
• Solid cash position
• Minimal short-term debt
• Strong balance sheet ratios debt-to-equity,
  current ratio