TNT Post in Germany broadens household coverage

TNT Post Germany has strengthened its position by acquiring shares in the regional mail companies of the Georg von Holtzbrinck publishing group. TNT Post currently covers around 90% of Germany with a nationwide delivery network.

For this network TNT works together with a lot of distribution partners and in key economic areas TNT has its own network covering around 26% of German households. With this strategic partnership TNT Post increases this coverage for the distribution of letter mail items to more than 40% of all German households and will benefit from further regional growth potential. Combining the local companies of Georg von Holtzbrinck with TNT Posts expertise and national infrastructure will create a platform for further increase of market share and innovation. Both parties are convinced that this combination will deliver value for money for the customers.

Harry Koorstra, member of the board of TNT: Although there is, due to the ongoing uncertainties regarding minimum wage and VAT, still no level playing field on the German postal market, this distribution partnership is important to maintain and strengthen the position as leading alternative provider of mail services in Germany. It enables us to offer a wider portfolio of mail distribution services to our customers.

Included in this strategic distribution partnership are two 50% joint ventures in the Berlin and Brandenburg area and five minority participations of 25.1% in the areas of Cottbus, Freiburg, Konstanz, Saarbrucken, Trier and Wrzburg. In total the companies generated revenues of EUR 116 million in 2008.

TNT Post has been operating on the German postal market for almost ten years. TNT Post has focused on building a nationwide network. This has been done via partners, acquiring shares in several distribution companies and building up its own distribution networks in key economic areas. The new acquisitions are in line with TNT Posts strategy of incorporating established and successful regional distribution structures such as the mail services of the Georg von Holtzbrinck publishing group into a countrywide, customer-oriented and reliable delivery network.

TNT Post Germany operates three companies in addressed mail, being:

- TNT Post AG in a partnership with Hermes (Otto Group) being a nationwide mail network covering around 90% of Germany with a nationwide delivery network with various partners.

- TNT Post Regioservice, a regional distribution network aimed at last mile delivery of mail in a combination of 100% owned companies and shareholdings in other regional distribution companies.

- PostCon
TNT Posts mail portfolio is completed by a range of consolidation services for business customers. Every day, over two million mail items are collected from numerous large companies across Germany. These are then sorted by postcode region in 13 sorting centres, bundled and tendered for further distribution. Today, half of all DAX-listed companies and other major customers are already taking advantage of TNT Posts consolidation services.

Total revenue of TNT Post in Germany in 2008 including unaddressed business, was around 250 million euro.

About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximise its network performance. TNT serves more than 200 countries and employs more than 163,000 people. Over 2008, TNT reported 11.1 billion in revenues and an operating income of 982 million. TNT is quoted on the Amsterdam Stock Exchange. TNT recognises its social responsibility and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world. Our efforts are being recognised: in 2008, TNT again reached the highest score of all companies included in the Dow Jones Sustainability Index and in the Carbon Disclosure Project in the carbon intensive sector.

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