DHL Invests over HK$100 Million in New Office and Fashion Competency Center in Hong Kong.

New Office to Function as DHL Global Forwarding's North Asia Pacific Regional Office

HONG KONG & PLANTATION, Fla. -- DHL, the world's leading logistics company today announced an investment of over HK$100 million in Hong Kong. The investment goes towards the new 120,000 sq ft DHL Global Forwarding (DGF) office in Kowloon Commerce Centre (KCC) and the "DHL Fashion Competency Center" which is based in KCC. The DHL Fashion Competency Center will develop customized logistics products and solutions, and house a core team of industry experts providing consultancy services to customers in North Asia Pacific.

The Fashion and Apparel sector comprised 11% of total exports in Hong Kong in 2008, and in January to February of 2009 alone, total exports for this category amounted to 16%. In 2008, the export of fashion and apparel goods from Hong Kong to the European Union occupied 36.5% of total exports, with an equivalent value of over US$10 billion1. In particular, export values to Finland, Russia, Sweden, The Netherlands and the United Arab Emirates experienced double digit growth by the end of 2008 compared to 2007. The U.S. is Hong Kong's second largest export market for fashion and apparel goods, at 35.6% with a value of close to US$10 billion2.

"The Fashion and apparel industry is Hong Kong's second-largest export commodity worth over US$26 billion3, after electronic products. The sector comprised 11% of total exports in Hong Kong in 2008 and experienced double digit growth in exports to many European countries. We see tremendous opportunity in the coming years. Despite the economic slowdown, speed to market remains crucial for business to stay competitive," said Hermann Ude, Global CEO, DHL Global Forwarding.

Hong Kong's total Airfreight export for the Fashion and Apparel sector amounted to more than 130,000 tons while Ocean freight export amounted to over 270,000 TEUs (twenty foot equivalent units) in 2008. The Airfreight and Ocean freight export of the sector is expected to reach over 124,000 tons and 276,000 tons, respectively in 2009.

"Hong Kong is the sourcing, merchandising and distribution hub for fashion in Asia. We believe in the long-term potential of the sector and continue to invest in Hong Kong. The new DGF office will function as our North Asia Pacific Regional office, drawing together a total of 800 employees under one roof. The new office is equipped with state-of-the-art facilities and sustainable features. This is a reason for our selection of the KCC as it is in line with our strategy to reduce our carbon footprint," said Kelvin Leung, CEO, North Asia Pacific, DHL Global Forwarding.

As the global leader in airfreight and ocean freight, DHL's services cover the entire fashion logistics value chain - from material purchasing to the sampling business, quality control of production and direct delivery to the boutiques of international fashion companies.

The investment is part of a series of initiatives by DHL to expand its presence in the fashion industry. Earlier this year, DHL launched Fashion Centers of Excellence in India and Sri Lanka. In April, the company inaugurated its Fashion-focused DHL Leadership Dialogue Series in Hong Kong which saw participation from leading global fashion brands. DHL was also a Key Partner of the World Retail Congress, which was recently held in Barcelona on the 6 - 8 May. And DHL is the official express delivery and logistics partner for IMG's Fashion Weeks around the world, a series of prestigious shows by IMG Fashion in ten countries annually.

DHL - The Logistics company for the world

DHL is the global market leader in the logistics industry and "The logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services. A global network composed of more than 220 countries and territories and 310,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 54 billion Euros in 2008.

1 Hong Kong's Total Exports of Clothing & Clothing Accessories (http://bso.hktdc.com/bso/PTableBrokerServlet)

2 Hong Kong's Total Exports of Clothing & Clothing Accessories (http://bso.hktdc.com/bso/PTableBrokerServlet)

3 Hong Kong's Total Export of Clothing 2008, Hong Kong Trade Development Council