Deutsche Post DHL Announces New U.S. Telecommunications Initiative

Five-Year Contract with AT&T to Enhance Telecommunications Services in the U.S. and Puerto Rico

Bonn, Germany.-Deutsche Post DHL, the world’s leading logistics provider, today announced the signing of a five-year agreement with AT&T to provide telecommunications services to Deutsche Post DHL businesses in the United States and Puerto Rico. The agreement is part of a worldwide Deutsche Post DHL group initiative to realize opportunities for service enhancement and cost optimization in the provision of telephony and networking services.

“The opportunities for reducing telecoms costs while improving service and network performance are significant”, said Stephen McGuckin, managing director of IT services at Deutsche Post DHL. “This initiative will help us pave the way for more cost efficiency throughout our U.S. operations and provide a next generation platform to transform and enhance our network services in the U.S. over the next five years.”

The new contract with AT&T covers Deutsche Post DHL’s Express, DHL Supply Chain, Global Forwarding, and Global Business Services divisions in the U.S. The service is expected to go live by late 2009.

Through telecommunications agreements with providers in the U.S. and Europe, Deutsche Post DHL is expected to save more than 170 million euros over five years. Related programs focused on rationalizing, harmonizing, and improving inter-operability of telecoms services across business units are also underway in DP DHL’s Asia-Pacific and Emerging Markets regions and throughout the Americas. These are expected to lead to significant additional cost savings in 2009.

“We’re focused on helping DP DHL achieve its business and cost-cutting goals while enhancing its telecommunications network,” said John Finnegan, senior vice president of signature and global client groups at AT&T. "We’re confident in our ability to facilitate increased network manageability and performance while providing DP DHL network flexibility and cost efficiency.”

Deutsche Post DHL has selected AT&T to provide secure telecommunications services including new technologies for DP DHL sites and end users in the U.S. and Puerto Rico. A key objective of the agreement is for AT&T to lead the transformation of Deutsche Post DHL’s Internet Protocol (IP) network services across the U.S. over the next five years and enable greater cost efficiency throughout company operations.

In scope of the agreement are the latest state-of-the-art telecoms technologies and proven services including wide-area network (WAN) services, local-area network (LAN) and wireless LAN services, mobile voice and data services, network security and service management.

The agreement includes a commitment to continuous innovation and strict service level agreements to both assure further network performance optimization and cost savings over the lifetime of the contract.

As part of its Roadmap to Value capital markets program, Deutsche Post DHL continues to identify and implement measures to reduce costs and derive more value from its businesses. A key objective of the program is to take 1 billion euros out of the Group’s indirect costs by the end of 2010.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.