Packages are getting cheaper

Deutsche Post subsidiary DHL will lower its package prices in Germany from July 1, 2006. In addition, the number of weight classes will be reduced from three to two: the 10-kilogram package for 6.90 euros (previously 10.50 euros) and the 20-kilogram package for 9.90 euros (previously 14 euros). The price for a 10-kilogram package will thus be even lower than the current price for a 5-kilogram package (7 euros), which will no longer be available from July. Customers can save an additional 1 euro by buying their parcel stamps online at www.stampit.de or directly from one of the 700 Packstations: Here, the 10- and 20-kilogram package stamps can be had for just 5.90 euros and 8.90 euros, respectively, which represents savings of more than 40 percent on the 10-kilogram package compared to the old price. The price for national small parcels was already reduced to 3.90 euros from 4.30 euros on May 4.

"The lower package prices represent another major step toward our customers following the recent cut in the price for small parcels," said Peter E. Kruse, Board Member DHL Express Germany and Europe. The roughly 12,000 postal retail outlets, 700 Packstations and 300 PostPoints are additional evidence of DHL's competitive edge in an increasingly fought-over market, he said. "Our achievements in terms of touch points and the latest price cuts represent the biggest customer initiative in the German market during the past few years."

Claude R. Béglé, Chairman of the Divisional Board Express Germany and Managing Director Express Central Europe, emphasized the advantages for the growing Internet retail trade: "The simplification of weight classes and the new prices make package consignments in times of booming online retail even more attractive for private customers."

Prices for international packages will remain unchanged. The e-package will continue to be offered via the electronic retail outlet (www.efiliale.de) for a price of 9.90 euros.