In the 2000 Stock Option Plan (SOP), eligible participants were granted stock options in two annual tranches. Certain employees (Group management levels one to three and some specialists) were granted stock options for the first time on 15 March 2001 (Tranche 2001). The second tranche was issued on 1 July 2002 (Tranche 2002). On the basis of the SOP 2003 resolved by the Annual General Meeting on 5 June 2003, no further options will be granted under the previous plan. Options were granted under the new SOP for the first time on 1 August 2003 (Tranche 2003). The second tranche (Tranche 2004) was granted to executives on 1 July 2004. The third – and last – tranche under this plan (Tranche 2005) was granted on 1 July 2005.

In comparison with the SOP 2000, the SOP 2003 allows for a larger number of eligible participants and a change in the percentage distributions of the stock options amongst the different groups of eligible participants, in addition to an increase in the total stock options to be issued. The grant of stock options to members of the Board of Management and executives in Group management level two still requires eligible participants to invest in shares of Deutsche Post AG. Eligible participants in Group management levels three and four receive stock options without any requirement to buy shares.

The stock options issued under both stock option plans can only be exercised within a two-year period following the expiration of a lock-up period of three years after the relevant grant date. The options can only be exercised if the absolute or the relative performance targets have been satisfied at the end of the lock-up period. Unexercised options lapse after the end of the exercise period.

The average price or average index performance during two periods (reference period = exercise price; performance period = final price) is compared to establish whether and to what extent the performance targets have been satisfied. The reference period is the 20 consecutive trading days prior to the grant date. The performance period is the last 60 trading days before the end of the lock-up period. The average price is calculated as the average closing price of Deutsche Post shares in Deutsche Börse AG’s Xetra trading system.

The absolute performance target depends on the performance of Deutsche Post shares and is deemed to have been satisfied if the increase in the Deutsche Post share price exceeds 10, 15, 20, or 25% or more (expressed as the final price divided by the exercise price). The relative performance target is tied to the performance of the shares versus the performance of the Dow Jones EURO STOXX Total Return Index. The relative performance target is satisfied if the performance of Deutsche Post shares during the above-mentioned performance period matches the performance of the Index or outperforms it by at least 10%.

For every six options, a maximum of four may be earned on the basis of the absolute performance target, and a maximum of two on the basis of the relative performance target. The respective stock options of the tranche concerned lapse without compensation if the absolute or the relative performance targets are not satisfied by the end of the lock-up period.

Each option entitles the holder either to purchase one share in the company or to receive a cash settlement in the amount of the difference between the exercise price and the average price of Deutsche Post shares during the last five trading days prior to the exercise date, at the Board of Management’s discretion.

Information on the individual tranches is presented in the following tables:

Unexercised options from Tranche 2001 lapsed without compensation following the expiration of the exercise period on 15 March 2006, those from Tranche 2002 on 1 July 2007.

Stock options outstanding on 31 December 2007 have an average remaining maturity of 2.08 years. The weighted average exercise price of the stock options from Tranches 2002, 2003 and 2004 exercised in the financial year is €14.28 (previous year: €12.86). These options were settled at the weighted average share price of €23.33 (previous year: €20.87).

Starting in financial year 2002, the SOP has been measured using investment techniques by applying option pricing models (fair value measurement). The expense of €16 million attributable to financial year 2007 (previous year: €31 million), comprising €14 million for the stock options (previous year: €29 million) and €2 million for the SARs (previous year: €2 million), was reported under staff costs.