Dear shareholders,

Ever since I took office as Chairman of the Board of Management last February, I have been emphasising the fact that the express business in the USA is at the very top of my list of priorities.

In May, we were able to present you with a pragmatic, comprehensive solution with which we intend to improve our US express business. A core element of this plan is to achieve substantial cost reductions through a proposed agreement with United Parcel Service in the area of air transport. The restructuring measures already undertaken are proceeding according to plan. The negotiations with UPS are making progress and are likely to be concluded in the near future as planned.

The restructuring is a key component of our Roadmap to Value capital markets programme. As stated in our promise to you, this programme will allow us to tackle problem areas related to our financial performance and boost our earnings power. For instance, we have already surpassed our target of generating at least €1 billion from real estate disposals by 2009.

All in all, we are satisfied with our business performance. Despite certain indications that growth in the air freight sector and the express market slowed in the second quarter, our EBIT before non-recurring effects grew substantially, increasing approximately 12% in the first half and climbing to approximately 19% in the second quarter. We are thus right on track for achieving our profit target for the year of €4.1 billion before non-recurring effects.

I would like to mention in particular our domestic mail business, which has succeeded in maintaining revenue at last year’s high level in a market that is now fully liberalised. In the area of logistics, we split responsibility for the freight forwarding business and contract logistics to reflect their different business models.

We are in the process of exploring the possibilities for the strategic development of Postbank. Talks are being held with various potential partners, the primary goal being to find a good solution for the two companies, their shareholders, employees and customers.

As you see: we have set about dealing with our key strategic topics and are steadily resolving all issues.

Bonn, 30 July 2008

Yours faithfully,