First international logistics company to obtain license to operate in China Domestic Airfreight market

Shanghai, 26 January 2007 – DHL, the world’s leading express and logistics company, today announced the launch of the DHL Domestic Airfreight service in China. To date, DHL Global Forwarding, one of DHL’s business units providing air and ocean freight services, is the first international forwarder to obtain the CATA (China Air Transport Association) domestic airfreight license, allowing them to operate within 17 Chinese cities. This is certainly a key milestone for both the company and the domestic logistics market, previously served only by Chinese state-owned and local companies. DHL Global Forwarding Domestic Airfreight is part of DHL Global Forwarding’s earlier announcement on the US$20 million investment plan to further enhance the company’s network infrastructure, human resources development, as well as products and services to meet anticipated business growth in China. With this launch and its First in China strategy, DHL is the only international logistics company offering both Domestic Express and Domestic Airfreight services.

“China has become one of the most significant logistics markets worldwide, with an abundance of open regulations and huge growth potential. We are confident that the license to operate and gain entry into the domestic airfreight market will provide fresh opportunities and improved management of heavy airfreight from door to door for our customers,” said Peter Landsiedel, CEO – Asia Pacific, DHL Global Forwarding. “The launch of DHL Global Forwarding Domestic Airfreight service is a strategic direction for us to expand westwards into second and third tier cities in China, allowing DHL to work more closely with our customers, who are developing their production base in the hinterland.”

The Chinese logistics market consists of various segments: international airfreight, and ocean freight, domestic airfreight, international and domestic roads, international and domestic rail and inland waterway and warehousing. According to the latest Boeing’s World Air Cargo Forecast, the domestic airfreight market has grown at over 20% every year since 1990, and is expected to double its current size and reach a ca. € 2.6 billion in 2010. China’s domestic air cargo market has become the second largest in the world with an annualgrowth rate forecast of 10.8%over the next 2 decades.

Currently, DHL has acquired 17 domestic airfreight licenses, allowing for the provision of the DHL Global Forwarding Domestic Airfreight service in Shanghai, Beijing, Dalian, Shenyang, Qingdao, Tianjin, Chengdu, Xiamen, Wu Lu Mu Qi, Nanjing, Ningbo, Xi’an, Kunming, Hangzhou, Guangzhou, Shenzhen and Wuhan. A total of 30 CATA licensed branches/warehouses, covering 70 cities, are scheduled for development by DHL in the next five years.

DHL Global Forwarding Domestic Airfreight service brings along a full portfolio of services including Priority, Standard and Customized services to meet different demands. With a highly efficient IT system, extensive network coverage, customized solutions, value added services and high security standards, DHL Global Forwarding Domestic Airfreight service provides a real one-stop solution for customers, achieving total pipeline visibility on domestic distribution and optimizing customers’ supply chain.

Partnering with major Chinese domestic carriers such as Air China Cargo, China Cargo Airlines, China Southern and Shanghai Airlines, DHL Global Forwarding Domestic Airfreight services guarantees premium service quality, competitive pricing and ensuring block space allocation especially during peak seasons. DHL’s strong solution design and quality control capabilities will prove beneficial to a number of key industries, including those of lifestyle, Electronic Equipment and Components, Audio/Video/Telecom, Automotive Components and Life Sciences.

“DHL has a long term commitment to China. Our state-of-the-art technology, customer focused services, continuous investment in technology, and in-depth understanding of China provide us with competitive advantages. DHL will continue to strengthen our extensive networks and infrastructure to stand ahead of the curve in tapping the potential in the freight forwarding market, both in the region and in China,” said Victor Mok, Senior Vice President – Greater China, DHL Global Forwarding.

DHL has invested more than US$1.7 billion in Asia Pacific in the past few years. DHL Global Forwarding’s existing network in China spreads over 44 locations with coverage extended to 23 cities.

About DHL

DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source.

DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an
in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. 285,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations. DHL is a Deutsche Post World Net brand. The group generated revenues of €45 billion in 2005.

For the latest news and happenings about DHL in Asia Pacific, please visit http://press.ap.dhl.com

Media Inquiries:

DHL Asia Pacific
Kathleen Goh
Tel: +65 6216 6296
Fax: +65 6216 6603
E-Mail: kathleen.goh@dhl.com