DHL Express, the global market leader of the international express industry, today announced it has been selected to handle logistics in Europe and Asia-Pacific for FSI International Inc. (Nasdaq: FSII), a global supplier of manufacturing equipment to the semiconductor industry. Under the agreement, DHL will serve as FSI's third-party logistics provider for its European and Asian semiconductor spare parts operations.

In March 2003, FSI assumed direct control for sales, service, applications and logistics support for its own products in Europe and the Asia-Pacific Rim. FSI's regional offices and service representatives are now responsible for local product support including providing technical information, scheduling required maintenance, dispatching service engineers and managing order entry for spare parts delivery.

DHL will ensure FSI is able to provide its customers timely and effective delivery of spare parts. DHL will manage FSI's spare parts inventory through its Strategic Inventory Management (SIM) program. DHL's SIM program integrates several service elements to create a global spare parts logistics solution. The SIM program consists of a global network of forward stocking locations (Spare Parts Centers or SPCs), a turn-key IT infrastructure to manage inventory, global call center capability, a global express transportation network and experienced personnel to manage every step of the process. The SIM solution enables leading semiconductor equipment manufacturers to offer their customers rapid delivery of spare parts on a global basis to minimize tool downtime and increase the yield of their customers' production lines.

"FSI chose to partner with DHL based on DHL's extensive global logistics experience in the semiconductor equipment industry, its operational flexibility and its vast international reach. DHL has an excellent reputation for providing high quality, global logistics services, shipping flexibility and a comprehensive, worldwide distribution network," said Don Mitchell, chairman and CEO of FSI International. "This partnership with DHL will help us better meet our customers' spares logistics goals, while maintaining highly efficient regional operations."

"DHL's U.S. SPC network was designed with the semiconductor industry in mind. We can offer two to four hour spare parts deliveries to virtually every major semiconductor factory in the U.S.," said John Chiappe, DHL's Network Global Industry Director for Semiconductors. "Our relationship with FSI is an example of the commitment DHL has to the semiconductor industry, and denotes our success in strategically managing spare parts logistics programs in this time-sensitive business not only in the U.S., but also in Asia and Europe."

DHL provides a single-company solution for customers with global service parts logistics needs. The company has expanded its U.S. SPC network to 47 locations with another 39 planned by the end of this year. DHL's SPC Network consists of 300 DHL operated and partnered facilities around the world. The SPCs are strategically located to manage pre-positioned inventory and provide in-country same day delivery. The SPCs operate around the clock to provide non-stop international logistics service.

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