HC Wooden Pallets and CHEP Settle Dispute

ORLANDO, Fla.--(BUSINESS WIRE)--June 8, 2006--Hector Caro Wooden Pallets, Inc., also known as HC Wooden Pallets, Hector Caro Ramos, and CHEP USA announced today their pending litigation has been settled. Representatives from HC Wooden and CHEP described the agreement as a fair and equitable settlement for both companies.

HC Wooden sued CHEP for breach of contract surrounding CHEP's termination of various service center agreements, and CHEP was in the process of preparing a counterclaim for, among other things, conversion of CHEP's assets.

As part of the settlement, HC Wooden Pallets and its officers agreed to participate in the CHEP Asset Recovery Program, acknowledging CHEP's sole and exclusive ownership in its blue-marked pallets, and that only CHEP has the right to buy, sell or trade these pallets. This will help CHEP recover its assets that come into possession of pallet recyclers and offers fair compensation to the pallet recycling industry.

"We are very pleased to reach an agreement with HC Wooden Pallets and its President, Hector Caro Ramos. We have worked very hard to put in a place a fair and equitable program, and believe our Asset Recovery Program has achieved this," stated Elton Potts, Senior Vice President, Asset Management, CHEP USA.

Mr. Caro Ramos added; "I am satisfied with our resolution, and HC Wooden Pallets will now participate in the CHEP Asset Recovery Program. I see no benefit for the parties to continue litigation, and I look forward to moving on."

About Hector Caro Wooden Pallets, Inc.

Hector Caro Wooden Pallets Inc. is a Puerto Rican corporation with headquarters in Rincon, Puerto Rico dedicated to the handling of pallets on the Island, for customers in a variety of industries.

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 Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World's Most Important Products. Everyday. For more information about CHEP, please visit: www.chep.com.