DHL Launches $160 Million U.S. HUB Integration and Automation Initiative.

PLANTATION, Fla. -- State-of-the-Art System Improvements Will Offer Enhanced Service to DHL Customers Nationwide Includes DHL Facilities in Wilmington, OH; Allentown, PA; and Riverside, CA

DHL, the world's leading express delivery and logistics company, today announced the launch of a state-of-the-art $160 million U.S. hub automation and integration project to enhance letter- and parcel-processing operations and tracking capabilities across its U.S. network. The roll-out of the initiative, which includes the express delivery and logistics industry's largest single purchase of tilt-tray loop systems for sorting letters and parcels, will begin this spring. When complete, the program will provide DHL customers and company operations nationwide with even greater operational accuracy and shipment visibility, while enabling DHL to rapidly adapt to changing technical shipping requirements.

The integration effort will synchronize the operations of letter-and parcel-processing equipment at DHL's key distribution facilities in Wilmington, OH.; Allentown, PA.; and Riverside, CA. State-of-the-art conveyor and sorting hardware, together with a proprietary software solution, will enable more rapid processing of shipments and increased efficiency at each facility, which in turn will benefit DHL's customers across the U.S. The initiative will also generate increased cost savings.

"DHL is a customer-focused company. We are continually looking for ways to improve service levels and exceed the expectations of our customers, while at the same time attracting new business," said Fred Beljaars, executive vice president for operations at DHL Americas. "This latest investment in our U.S. network will give our customers the ability to track letters and parcels even more effectively, and we're specifically making these state-of-the-art improvements at facilities that serve the greatest percentage of our customers. In addition, implementing the new letter- and parcel-sort equipment and software will directly improve our bottom line by increasing network efficiencies."

One of the greatest benefits of this unique partnership is that DHL customers will be able to track both domestic and international letters and packages more closely through a series of guaranteed scans.

The automation process will involve the seamless integration of software and hardware systems, including the host of conveyors, walkways and terminals that link all of the equipment together. Components include proprietary sort software, which controls machine operations and manages package flow and information, and new sort equipment featuring hardware such as tilt trays for moving letters and parcels, dimensional and image scanners, singulators (mechanisms designed to individualize the flow of letters and packages), loaders, unloaders and video-coding devices which are used to read labels on packages. DHL will soon announce the selection of automation and system integration partners that will allow the company to provide enhanced services leading to the improvements throughout the three hubs.

"With the implementation of this technology, DHL will soon have the advantage of sort equipment that raises its letter- and parcel-sort systems to the highest level of competitiveness in the industry," noted Steve White, senior vice president, hub & gateways, gateway management, DHL Americas. "In addition to increased accuracy and providing opportunities for DHL customer service to quickly correct and process incomplete or incorrect shipping labels, we will have a flexible platform that can be rapidly adjusted to new business technology and customer requirements. This will include adapting to continually emerging bar code standards, radio frequency identification technology and other developments."

The installation process is scheduled to begin at the end of spring 2005 and should be fully operational by fall 2006.

About DHL

With annual revenues over $32 billion in 2004, 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 and logistics solutions, combined with worldwide coverage and an in-depth understanding of local markets. Over 160,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations.

Founded in San Francisco in 1969, DHL's international network links more than 220 countries and territories worldwide. For more information on DHL, please visit www.dhl.com.