Detailed Progress Updates Since Ransomware Attack

Status

Thursday, 06/27/2019 11:00 AM ET

Plenty of positive results and progress to report, as we are very close to returning to our pre-attack state.

Our pre-intrusion interactive Website at www.aduiepyle.com is back up and functioning. In addition to Shipment Tracking and Transit Times, you can now access Bill of Lading and Delivery Receipt document images. Pickup Tracking, Volume Spot Quotes and Rate Inquiry have all been restored and are available for your use.

With respect to our Customer Service Phone Systems and related technology, we were able to reactivate our Caller ID System Tuesday morning. We are once again able to pre-populate your inbound calls to our CSR Pick-Up Request entry screens with your shipping address and other pertinent information, which makes the phone pickup process more efficient for you. On the subject of Pick-Up Requests, you are now also able to once again enter your Pick-Up Requests at www.aduiepyle.com.

Yesterday we restored our Customer Invoicing systems, and we have now resumed transmitting invoices in your requested medium, whether it be paper, email or EDI.

As of Tuesday night, we had fully restored our Dock Management System barcode scanning and workflow systems in all Pyle Cross-Dock Operations, which was a major milestone in our recovery from the network communications systems breach which occurred on June 15th.

After a very long 13 days since, we have made tremendous progress and are now in a much better position to provide the service levels you are accustomed to receiving from Pyle. We do apologize for any inconvenience and/or frustration you experienced as we worked through the recovery process. While some work remains to be done, we are pleased to report we are in a good spot and expect to be completely current on all shipments in the next 24 hours.

We appreciate the very positive feedback we have received from many Pyle Customers on our on-going honest and proactive communications and updates since the intrusion first occurred.

In as much as we have largely returned to our pre-intrusion state, we expect this will be our last update on the June 15th attack.

On behalf of our entire Pyle Team, we thank you for your continued support. Please accept our heartfelt appreciation and gratitude for your patience and loyalty.

Monday, 06/24/2019 4:30 PM ET

We continued our restoration process over the weekend, and work continues today. Our pace of progress is accelerating given the reactivation of a number of our key communication platforms and support systems that were impacted by the intrusion on June 15th.

As noted Friday, all of our Customer Service Call Centers are in full operation, and our call load balancing technology is back in place. Our Caller-ID integration with our Customer Service programs has not yet been reactivated, so we are not able to prepopulate pickup location information when you are scheduling a pickup with Customer Service. As such, pickup calls take a little longer than normal to process because our CSR’s need to obtain pickup location information from you during the call.

Our Document Imaging System was restore early this morning, so Bills of Lading and Delivery Receipts are now available. The capability to view Delivery Receipts and Bills of Lading on our website has not yet been restored, and we will provide an update when our fully interactive Pyle website is available for use and document images can be viewed via our website.

The volume of calls to our Customer Service Centers is at times very high, so we appreciate your patience if your call is not picked up as quickly as you are accustomed.

Tremendous progress has been made since this time last week thru an incredible amount of commitment and hard work. Your Pyle Team is anxious to get this entire incident in the rearview mirror and return completely to our normal state. We are very close, and while we have not yet crossed the finish line, we are thankful it is very close and easily within sight.

We appreciate and thank you for your continuing patience and support.

Friday, 06/21/2019 5:00 PM ET

As this most challenging week comes to a close, we wanted to share some information relative to a few of the logistical aspects of our recovery process from the intrusion on our communication network systems, despite extensive security policies in place, that impacted other Pyle support platforms. Our reason for sharing our experience and response is to perhaps, in some small way, help some of our Customers in the unfortunate event you find yourselves in a similar position.

When the attack occurred last Saturday morning, our team started an around the clock vigil to reactivate our Pyle operating system which we use in the daily conduct of our business. We immediately cut all ties to the internet and every Pyle device was disconnected from the Pyle communications network in every facility, which in our case is over 1,000 desktop towers and laptops, as well as many other additional devices used in our business. We set up a 24-hour assembly line process to wipe, reimage and install additional new software on all company devices. By late Sunday night, we completed this process on 50 commandeered devices previously used in our main Corporate Headquarters, and then the challenge became the logistics of positioning up to two devices of each of these 50 devices at each Pyle Service Center so we would have visibility and use of our Pyle System across our operating network. We accomplished this thru a combination of logistical ground transport and use of our corporate aircraft, all planned and executed without the benefit of Pyle email or facility phone systems. By early Monday morning, each Pyle Service Center had one or two devices in place to operate the business. For those in the business, one can appreciate operating 100+ door cross-dock facilities with just one or two devices to sustain all the planning and execution for these large operation centers.

With business opened Monday morning, and delivery and pickup operations underway, the logistical challenge then became moving the over 1,000 devices from the Service Centers to our Corporate Headquarters so every single device could be wiped, reimaged, installed with some new software and then returned to our Service Center network so the facility could restore the number of devices needed to fully support the daily business needs and activities.

Fortunately, we were able to rely on our logistics planning capabilities and experience to expedite this process. The devices started to arrive at our Corporate Headquarters on Tuesday morning, and 48 hours later each of the over 1,000 desktop towers and laptops had been wiped and reimaged, returned to their original location and reinstalled.

To our valued Pyle Customers, we cannot overstate our appreciation and gratitude for your understanding, support and patience as you too have endured some of the disruptive impacts of the pain inflicted upon us by people who know us not, yet chose to place the over 3,000 dedicated Pyle People and their Families in jeopardy. We have not yet fully recovered from the attack last Saturday, but we have come a very long way in these last seven most challenging days as a result of our Pyle Team’s grit, determination, unyielding work ethic and resolve, and the all-important support of our Customers who continue to honor us with your business.

For this, please accept a very sincere and heartfelt THANK YOU from your Pyle Team.

Pete Latta, CEO

Friday, 06/21/2019 3:00 PM ET

Referencing our last Update Report from Thursday, 06/20/2019 at 5:30 PM ET, this morning we were able to reactivate our third and final Customer Service Call Center in Buffalo, NY, so all of our Pyle Call Centers, are now back in service. This afternoon, we implemented some creative call load balancing adjustments until such time as we reactivate our inbound call routing technology systems. Our call volumes are very heavy, so we have also redirected our outbound calls from the trunk lines that are now being used exclusively for your inbound calls to us. In monitoring our phone activity since these measures have been implemented, we are seeing a material reduction in the level of “all circuits are busy” triggers and dropped calls.

While you may continue to experience some intermittent phone service interruptions, we believe the measures detailed above will improve your experience with our phone service.

While we have accomplished many other restoration advances during the last 24 hours, we did want to share that we are making strong progress in restoring our document imaging systems which will continue over the weekend. We expect to have our bill of lading and delivery receipt images available the early part of next week.

Thank you for your continued patience and support.

Thursday, 06/20/2019 5:30 PM ET

We are pleased to report continued progress on our recovery from the breach of our communications network systems as previously communicated.

A number of our additional support systems were restored to proper levels of functionality during the 24 hours since our last update.

Restoration and reactivation efforts of other impacted systems continues, and we are working through some operational challenges that the disruption introduced.

We continued to encounter intermittent phone issues today, as we have not yet been able to restore on a complete basis our call routing load balancing systems which direct your calls to one of our three Customer Service Centers. The communications system in one of our Customer Service Call Centers has not yet been restored, so as a result, at times our other two Call Centers are overloaded so you may receive an “all circuits are busy” message or a delayed answer of your call. Please know that we are working as quickly as we can to rectify this situation by achieving complete restoration of our call routing technology support systems and returning our phone service responsiveness to the levels you rightfully expect.

It has been a very long last six days for our Pyle Team. Despite the fatigue of very long hours and plenty of new and previously uncharted challenges, spirits remain strong and our collective resolve to win has not, and will not, waver.

Wednesday, 06/19/2019 5:00 PM ET

As our final report of the day, we are pleased to share that the first two components of our interactive Pyle Website are now available for your use. You can access our website at www.aduiepyle.com. We have turned on the interactive Shipment Tracking and Transit Time features which are now available for your use. You will see the Tracking and Transit buttons at the top of our Home Page.

Since early Monday morning, we have tried to balance the level of our communication updates. We apologize should anyone feel we have been excessive in our updates, but we thought it better to err on the side of over communicating than under communicating.

As the CEO and an owner of the Pyle family business, on a personal basis, I do want to let you know how very proud I am of our Pyle Team. I wish you could have been witness to the teamwork, extraordinary effort and esprit de corps I have personally witnessed these last 108 hours. Not a single person lost their composure or unwavering commitment during what have been extremely stressful and pressurized conditions. It is truly a testament to our Pyle Culture, for which I am most thankful. Recognizing our good fortune of having such loyal and patient customers like you, and being a part of a very special team of 3,200 Pyle People, I have been blessed beyond measure.

Thank You,

Pete Latta, CEO

Wednesday, 06/19/2019 1:00 PM ET

We are pleased to report that our Pyle email systems have been reactivated and your Pyle Team is available, ready and willing to serve you via email.

Thank you for your on-going support and patience.

Wednesday, 06/19/2019 10:30 AM ET

We are very pleased to report more progress.

We have reactivated our API pickup request and shipment tracking connectivity, but we are controlling, at a customer level, the volume of API transaction requests for certain high demand users. We will continue to monitor the API activity levels to ensure all users are receiving the API’s requested, and will increase demand capacity as the day progresses.

Please know your Pyle Team is working tirelessly around the clock to return our communication network systems to pre-intrusion conditions, as we continue to supply our very best collective efforts to support you supply chain service requirements.

Tuesday, 06/18/2019 6:00 PM ET

We are pleased to report that our EDI services have been activated, and we are receiving and processing EDI inbound transmittals to Pyle and sending EDI status updates to our Pyle Customers. Our document imaging system is not yet activated, so we are not able to transmit document images of bills of lading or delivery receipts at this time.

We are getting close to activating our API and Email systems and will provide an update when these services are available.

We thank you for your continued patience, and we look forward to honoring your support of our Pyle Team by supplying our best collective efforts to service your business supply chain requirements.

Tuesday, 06/18/2019 9:30 AM ET

We continue to make progress recovering from our communications network systems intrusion reported yesterday.

All things considered, we had a relatively successful operating day on Monday in each of our Pyle business units, which include LTL, Dedicated, Warehousing & Distribution and Brokerage Services.

We are pleased to report our Driver handheld mobile data communication systems are now back in operation today, allowing us to timestamp deliveries and pickups, and transmit shipment pickup bills of lading directly from our drivers to our billing centers on a real time basis.

Last night, our voicemail system was reactivated, and later today we expect to reactivate our EDI and API systems.

We continue our restoration efforts on our email system, and expect to activate our email systems before the end of today.

We remain sincerely grateful for your continued support of our Pyle Team as we work diligently to restore our full network communication systems capabilities and capacity. We will continue to provide timely updates reporting on the status of our restoration process.

Monday, 06/17/2019 1:05 PM ET

We are pleased to report continued progress on our network communication systems intrusion as detailed below.

All Pyle LTL, Dedicated, Warehousing and Brokerage Services are up and operating and conducting business effectively. Our LTL and Dedicated Fleets have been on the street since early this morning and are completing our deliveries and making pickups. Our Linehaul operation will be at full capacity tonight to position today’s pickups for delivery tomorrow. We hope to restore external email communications later today, but as noted below, we are activating these communication systems in a very purposed and measured process in conjunction with our cybersecurity expert partner.

Thank you for your continued support of our Pyle Team. We are blessed with a wonderful culture and a very engaged Team of Pyle People, and their tireless efforts since Saturday morning’s intrusion have been nothing short of amazing. Please rest assured that your Pyle Team is supplying our very best collective efforts to support you, our valued Customers. We will provide additional updates on our continuing progress.

Monday, 06/17/2019 10:45 AM ET

Our Brokerage Services systems were not impacted by the ransomware attack. However, we are still in the process of restoring our network communications systems. While we continue to work on a resolution, please utilize the following email address for Brokerage Rate requests.

PyleLogistics@gmail.com or call 800−792−6167

We appreciate and thank you for your continued support.

Monday, 06/17/2019 8:00 AM ET

Over the weekend, A. Duie Pyle was subject to a ransomware attack that has impacted our network communication systems. Our Pyle core operating systems and backups were not invaded or compromised, and there was no data extracted from these systems. Our IT Team along with our outside cybersecurity experts have been working on a restoration solution and have made significant progress in restoring, in a careful and measured manner, our network communication systems.

Thank you for your patience and continued support. Our Pyle website is currently not available for interactive use, so please direct all pickup requests and other service and support requests to our Pyle Customer Service Team at 800−523−5020 . We expect to have email communications available later today. Please check our website www.aduiepyle.com for updates.

While all businesses in our country are at risk for these type of attacks, and our turn came this weekend, we are very proud of our Pyle Team’s around the clock response to this intrusion. We thank you for your past and continuing support, and while we expect there may be some competitive attempts to exploit this occurrence, we trust we can count on your on-going support of our Pyle Team.

We will provide timely updates as they become available while we continue to return to one hundred percent of our systems full operating capacity and capabilities.