Since the start of 2007, we have reported the Parcel Germany unit in the MAIL Division. The prior-year figures have been restated accordingly.

In the first quarter of 2007, revenue in the division rose by 2.9% to €3,930 million (previous year: €3,818 million). We succeeded in more than compensating for the anticipated decline in revenue in the Mail Germany segment through increases in international mail business. Once again, currency effects were insignificant.

While conditions remained unchanged, revenue in the Mail Communication Business Unit was still down slightly, amounting to €1,594 million (previous year: €1,688 million). The increasing use of electronic means of communication is resulting in ongoing shrinkage of the market, while at the same time competition is becoming more intense. Volumes continued to decline in Q1; among other things, there was 0.7 of a working day less in comparison with the previous year. In the regulated area, we kept our mail prices essentially stable although the inflation rate relevant to the price-cap procedure was up. Furthermore, we lowered our rates for formal delivery orders. By contrast, we were able to substantially reduce expenses thanks to strict cost management.

In the Direct Marketing Business Unit, we are noticing a trend toward higher-quality services such that, despite a decline in volume, revenue was only down from €757 million to €744 million; viewed against the number of workdays, the figure remained at the same level as the previous year.

Once again, we achieved revenue gains in the Press Distribution business: Revenue rose by 2.4% to €210 million (previous year: €205 million).

Our new addition, the Parcel Germany business, notched revenue of €628 million (previous year: €647 million). In 2006, we substantially lowered prices for our customers while at the same time successfully raising our sales volumes.

As in the prior year, our international business recorded the strongest increase in revenue: Three-month revenue in the Mail International and Corporate Information Solutions (Williams Lea) units rose to €804 million (previous year: €577 million), an increase of 39.3%. The main growth driver is the inclusion of Williams Lea as of April 1, 2006.

Profit from operating activities (EBIT) fell by 10.8%, from €693 million in the previous year to €618 million. In addition to the missing workdays, this was a reflection of last year’s price cuts in the Parcel Germany business. Our return on sales amounted to 15.7%.