The industrial supply services agreement between Strategic Distribution, a leading provider of MRO supply chain management services, and Kraft Foods North America, is to be terminated. The two companies have for some time been discussing certain changes to the services agreement that were intended to reduce SDI's working capital commitment and make the agreement mutually beneficial. As a result of the inability of the parties to reach a revised agreement, SDI and Kraft have decided to terminate the relationship prior to the current contract expiration of August 2003.