Description of Exhibit 1

This graph shows indirect savings as a fraction of direct savings.

The x-axis shows the percentage of transport cost reduction, from 0 to 60. The y-axis shows the indirect savings as a percentage of direct savings, from 0 to 40. Manufacturing scale economies are shown for 1.05, 1.33, and 2.00 as follows:

• A manufacturing scale economy of 1.05 increases from 0 to 5 percent transport cost reduction and 2 percent indirect savings, to 10 percent transport cost reduction and 5 percent indirect savings, to 25 percent transport cost reduction and 13 percent indirect savings, and to 50 percent transport cost reduction and 35 percent indirect savings.
• A manufacturing scale economy of 1.33 increases from 0 to 5 percent transport cost reduction and 2 percent indirect savings, to 10 percent transport cost reduction and 4 percent indirect savings, to 25 percent transport cost reduction and 10 percent indirect savings, and to 50 percent transport cost reduction and 24 percent indirect savings.
• A manufacturing scale economy of 2.00 increases from 0 to 5 percent transport cost reduction and 2 percent indirect savings, to 10 percent transport cost reduction and 3 percent indirect savings, to 25 percent transport cost reduction and 7 percent indirect savings, and to 50 percent transport cost reduction and 17 percent indirect savings.