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DHL selected by RHODIA as worldwide Lead Logistics Partner

Paris, January 24, 2005 - RHODIA, a global specialty chemicals company, has just signed with DHL a global contract which positions DHL as worldwide LLP for the Group. This 3 to 5 year contract covers a logistics procurement perimeter of 60 million €. Based on this contract, DHL is positioned not only as transportation and logistics provider but also as 4PL. The contract covers the management of road logistics flows by DHL Freight and also sea and air freight by DHL Danzas Air & Ocean.

The scope of the worldwide contract between RHODIA and DHL
RHODIA is engaged in a global logistics outsourcing process which is part of its strategy for sustainable growth, cost reduction, increase of productivity and continuous customer service quality improvement.

The contract was awarded to DHL after a very selective tender process. The scope of the agreement covers:

	Management of all intercontinental inbound and outbound logistics flows for RHODIA at a global level (4 zones : Europe, North America, Latin America and Asia in the longer term) by DHL Danzas Air & Ocean, intercontinental freight forwarder.
	Management of outbound and inbound road cargo flows (packed cargo) of RHODIA plants : in a first step Valence, St Fons, Clamecy, Melle, La Rochelle and Arras by DHL Freight, specialist of road cargo / full and partial loads.

The overall perimeter is 60 million euros.

"Rhodia's goal is to consolidate the handling of its logistical operations in Europe in order to maximize the management of its product flows and reduce its logistic costs. This agreement is part of a bigger step taken by the group, involving all European freight that will permit to take advantage of the recognized DHL experience in the chemical industry, the management of international operations processes as well as its multimodal expertise. We wish to commit ourselves in a long lasting partnership with a very restricted number of suppliers with whom we share value added services. DHL precisely fits into that picture", declares Patrick KOLLER, RHODIA Purchasing Director.

"DHL has been assisting Rhodia with their logistic projects for several years. It was only natural for us to take up the challenge set by Rhodia. Rhodia's economic and logistic concept and its requirements (very respectful of all objectives of sustainable development, business ethnics and conform to our values) give us all confidence in the success of the logistic project and its contribution to the performance of Rhodia's markets", comments Klaus PFAB, Managing Director of DHL Air & Ocean.

The Key factors of Success
The tender process of RHODIA aimed at selecting a very restricted panel of Logistics Providers under the criteria that they should be experts and leaders in their core business, and should have positive supplier record with RHODIA.

The emphasis was put by RHODIA on the capacity of selected LP to demonstrate a credible sustainable growth strategy including safety, security, environment protection. Expectations of RHODIA were high in terms of logistics assistance and consultancy capabilities.

RHODIA recognized DHL strengths :

	Proven logistics record in fine chemical industry
	In depth analysis and understanding of RHODIA strategic approach
	Power of its global transportation and logistics network and its presence in more than 220 countries and territories
	Integrated European network and leading position especially in the 10 Eastern countries which have just joined the European Union
	Proximity of DHL to RHODIA sites : 60 road stations dedicated to the management of RHODIA road cargo in France
	Multimodal expertise (road, air, ocean, customs brokerage)
	Maximization of multimodal synergies with cross business units dedicated team
	DHL stable and powerful shareholder (Deutsche Post World Net) for the timelessness of the contract
	ISO 9001 version 2000 accreditation
	Powerful and sophisticated Information systems with EDI capabilities
	Global management and alignment of operational processes

Beyond these facts, the DHL commitment to succeed in this challenge was decisive as well as the recognition that DHL and RHODIA share the same values especially in the field of sustainable growth:

"It is an innovative initiative between an industry leader and a leader specialized in logistics and the transportation industry. The interest of both parties are perfectly convergent", Andre SUEUR, General Director of DHL Freight, emphasized.

"Promoting sustainable development while sharing the same social, environmental, and economical values, has been the decisive factor in the choice made by the group" specifies Jacques KHELIFF, RHODIA Vice President for Sustainable Development. "For both parties to have an harmonized and profitable long-term partnership, the client and supplier, both need to fulfill the same amount of requirements and obligations. This contract perfectly fits the political scope of Rhodia and DHL for sustainable development", he added.

RHODIA
Rhodia is a global specialty chemicals company recognized for its strong technology positions in applications chemistry, specialty materials & services and fine chemicals. Partnering with major players in the automotive, electronics, fibers, pharmaceuticals, agrochemicals, consumer care, tires and paints & coatings markets, Rhodia offers tailor-made solutions combining original molecules and technologies to respond to customers' needs. Rhodia subscribes to the principles of Sustainable Development communicating its commitments and performance openly with stakeholders. Rhodia generated net sales of €5.4 billion in 2003 and employs 23,000 people worldwide. Rhodia is listed on the Paris and New York stock exchanges.

DHL
With annual revenues of nearly Euro 22 billion in 2003, DHL is the global market leader of the international express and logistics industry, specialising in providing innovative and customised solutions from a single source.

DHL offers expertise in express, air and ocean freight, overland transport and logistics solutions, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. Over 160,000 employees are dedicated to providing fast and reliable services that exceed customer's expectations.

DHL is 100% owned by Deutsche Post World Net.

For further information please contact:

Press Contact DHL France:
BG Presse: Céline Camon
Tel: 01 49 48 63 72 - Fax : 01 49 48 63 77
celine@bgpresse.fr