Quebecor World Logistics NEWS FLASH - Issue #220
Flooding In The Midwest Impacts Delivery

June 12, 2008

Several regions in the Midwest have been hit with torrential rains, severe thunderstorms and tornadoes resulting in high water on many roadways / railroads and sporadic flooding conditions throughout; the most significant of these effects seen in Cedar Rapids, IA and Waukesha, WI, making any travel or distribution through these areas extremely difficult and dangerous. The heaviest of the flooding seems to be taking place in Lake Delton, WI where a dam broke and has swept away several homes and flooded much of Waukesha. Wisconsin Governor has declared a state of emergency because of the heavy flooding as well as the temporary risk of another local dam under stress. QWL remains committed to providing our customers with the best possible service and updates under these unfavorable weather circumstances.

Rail/Intermodal Update

Norfolk Southern recently issued the following Service Alert regarding a Union Pacific embargo:

Due to severe weather and resulting flooding along their lines, Union Pacific has issued an embargo on all traffic moving between Chicago and their Intermodal locations in California, Colorado, Idaho, Iowa, Nevada, Oregon, Utah, and Washington. This includes all traffic interchanging to or from connecting carriers at Chicago.

In order to maintain fluid operations at our terminals and on our line of road, effective at 5:00 PM today, NS will not accept containers or trailers destined to UP via the Chicago Interchange. As the situation on UP is resolved, we will work to resume service as soon as possible. In the meantime, our terminal gates will remain open for services on all NS local routes, all BNSF interchanges and UP interchanges other than Chicago.

U.S. Postal Service Network Update

Gays Mills, WI, 54631

Due to flooding, all operations, including distribution, rural and PO Box service for the Gays Mills, WI, Post Office have been relocated to the Soldiers Grove, WI, 54655 Post Office on June 9, and will remain there indefinitely.

Viola, WI, 54664

Due to flooding, all operations, including distribution, rural and PO Box service for the Viola, WI, Post Office have been relocated to the Readstown, WI, 54652 Post Office on June 9, and will remain there indefinitely.

Waterloo, IA, 50701

The main post office of Waterloo, IA, 50701 was evacuated due to flooding as of as of 8 p.m. on June 9 and all operations have since been suspended. A temporary facility has been secured at 306 Thorson Avenue in Waterloo. The Waterloo Post Office also has suspended the acceptance of business mail at the office's Business Mail Entry Unit (BMEU) until further notice.

Cedar Rapids, IA, 52401

Cedar Rapids, IA, 52401 mail processing operations will continue through Thursday morning, June 12. The office will not be accepting drop shipments. Effective immediately all drop shipments destined for Cedar Rapids 52401 must be redirected to the Quad Cities Processing & Distribution Facility, 7700 68th St, Milan, IL, 61264-9997. The Finance Unit located at 311 3rd Ave SE, Cedar Rapids, IA, 52401, has been evacuated and will have no retail services until further notice. Retail Services, Caller Service, PO Box Service and Business Mail Entry Unit acceptance will still be provided at the Main Post Office, 615 6th Ave SE, Cedar Rapids, IA 52401.

We will continue to provide updates as additional information becomes available. We at QWL are doing everything possible, in the meantime, to minimize the impact on delivery to/from the affected areas.