Staff costs include an amount of €29 million relating to the acquisition of TSO.

Retirement benefit expenses include €560 million (previous year: €559 million) relating to contributions by Deutsche Post AG and €111 million (previous year: €111 million) relating to contributions by Deutsche Postbank AG to Bundes-Pensions-Service für Post und Telekommunikation e.V. Further details can be found in Note 6.

Staff costs relate mainly to wages, salaries and compensation, as well as all other benefits paid to employees of the Group for their services in the year under review. Social security contributions relate in particular to statutory social security contributions paid by employers.

Retirement benefit expenses relate to current and former employees or their surviving dependants. These expenses consist of additions to pension provisions, employer contributions to supplementary occupational pension plans and retirement benefit payments by employers for their employees.

The average number of employees of Deutsche Post World Net in the year under review, classified by employee group, was as follows:

The number of full-time equivalents as at 31 December 2007 was 475,100 employees (31 December 2006: 463,350 employees). The employees of companies acquired or disposed of during the year under review were included ratably. The employees of the joint venture companies have been included proportionately.