16 February 2010

Represents an important milestone for the Company

Bibby Distribution has won a new contract to provide a farm collection service for farmers’ cooperative First Milk in West Wales. Bibby also retained a similar contract in Scotland and North Cumbria, as part of a comprehensive review and tender process. Furthermore, the Company also secured a contract for the nationwide management of First Milk’s secondary distribution operation which is scheduled to start in summer 2010.

Bibby Distribution will be responsible for collecting around 3.5 million litres of milk from farmers every day, delivering it both directly to First Milk creameries as well as First Milk’s customers under the national secondary deal.

On the national secondary operation, Bibby Distribution will work alongside Lloyd Fraser, who will provide the farm collection service for First Milk in central England and east Wales.

Bibby Distribution has been working with First Milk since the mid-nineties, and this win has effectively doubled Bibby’s stake in the market. It is anticipated the new arrangement will achieve significant savings in the fiercely competitive dairy sector, using innovation and technological advances to reduce logistics costs.