Standing still is something we're not very good at.

In 1995 we enhanced every aspect of Expeditors, adding offices and capabilities, recruiting outstanding people and expanding our technology.

We opened 17 offices last year, enhancing our presence in the U.S. and Europe while introducing Expeditors to South America and Mexico. These first steps in Chile, Brazil and Mexico represent an enormous opportunity for our company, our shareholders and our people.

We brought key people on board: Rosanne Esposito joined us as Director of U.S. Imports. Erin Thomasson is heading up an entirely new division -- marine insurance -- expanding our offerings in insurance and providing our customers the best possible rates. Nina Mitina is directing sales and service into the Russian Far East, while assisting us with assessing the potential Russia offers as a whole. Rick Ballantyne is Director -- Global Distribution Services in our corporate office in Seattle; Mark Jackson took his expertise to our Singapore office, becoming Managing Director for Southeast Asia. Promotions included Deanna Wilson, to Director of Quality and James Wang, one of our founders, to Executive Vice President, Far East.

The number of new offices and new people are only a few growth indicators. Under the direction of Bill Coogan and Adam Seidenwerg for both NVOCC and ECMS ocean freight, growth has been remarkable. We have continued to add exponentially to our account base, and we are focused on maintaining that pace. Our leading edge technology is poised to take another leap forward: exp.o will integrate many of the services and functions we offer, placing our customers at the absolute center of their shipment cycles -- thanks to the talent and dedication of our information systems staff, the breakthroughs keep coming.

1995 was a great year for Expeditors. But our eyes are already on the future. In the coming years we will continue our expansion, look selectively and carefully at acquisitions, enhance our systems, sustain our commitments to training and service and broaden our account base. We thank our employees, customers and the investors who really believe in us. Thank you for seeing the real value Expeditors offers.

In an era when many businesses grow by simply acquiring existing operations, we've placed the emphasis on building it ourselves. And the reason is simple. Our business is based entirely on service and understanding our customers. The single most valuable thing we have is our culture. A culture brought to life by people who embrace responsibility, seek opportunity and remain committed to the needs of their customers.

That's something you can't just go out and buy. And while buying it may create the illusion of growth, we feel better about our approach. Because by building our company carefully, by continually enhancing what we have, we ensure that the competitive advantage we offer our customers is the real thing, not just a slogan. The following pages will give you a sense of just how far our people are prepared to go for our customers. Add to their commitment our thanks for another banner year.


P e t e r   J.   R o s e ,

Chairman and Chief Executive Officer


K e v i n   M.   W a l s h ,

President and Chief Operating Officer

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