DHL Opens Largest U.S. Service Center to Accommodate Surge in High-Tech Shipping.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--May 11, 1999--

In response to the growing demand for reliable international air express transportation of high-value, high-technology shipments, DHL Airways, Inc. today announced the opening of its largest U.S. service center in Sunnyvale, California. The new 53,000 square-foot facility is more than twice the size of the service center it replaces and covers the core of the Silicon Valley from Menlo Park to Fremont to South San Jose.

The 130 employee facility will provide DHL's highly specialized services to meet the unique shipping needs of the high-tech industry, such as added security measures, merge in transit, same-day international service for urgent shipments and enhanced logistics support. The service center will be supported by a dedicated DHL 727 freighter aircraft added last July from San Jose International Airport to DHL's main North American hub in Cincinnati, Ohio, offering customers earlier drop-off times and later pick-up times.

"Speed, security and reliability are the lifeblood of success for today's technology companies for the shipping of prototypes, parts, components and inventory," said Patrick Foley, chairman and CEO of DHL Airways, Inc. "By understanding the specific needs of the high-tech industry and offering customized logistics solutions, DHL provides an unmatched international capability that allows customers to focus on their core business."

DHL's Silicon Valley growth statistics over the last five years illustrate the express industry's trend toward the shipping of heavier, high-value goods. Between 1994 and 1998, DHL's Sunnyvale facility handled a 74% increase in the total weight of shipments, and a 47% increase in total revenue.

Shipping patterns from the San Jose area also support the importance of international commerce for Silicon Valley companies. "Ninety percent of DHL's local revenue is generated from international bound shipments, most of which are destined for the Pacific Rim, Far East, Europe and South America," said Foley.

DHL Worldwide Express is the world's largest and most experienced international air express network, linking more than 635,000 destinations in more than 220 countries. With an estimated 40% market share of international express traffic(1), DHL ships more than FedEx, UPS and Airborne combined. DHL Worldwide Express is composed of DHL Airways, Inc., which serves all locations in the U.S. and its territories; and DHL International, Ltd. and its agents and affiliated companies, which serve all locations outside the U.S. and its territories. Visit the DHL website at http://www.dhl.com.

(1) According to a study by the Air Cargo Management Group