Deutsche Post to participate in capital increase of Postbank

The Supervisory Board of Deutsche Post AG has approved that Deutsche Post, as the majority shareholder of Deutsche Postbank AG, will participate with up to 100% in the bank’s planned capital increase. On 27 October 2008, Deutsche Post has committed to subscribe to the planned rights issue of 54.8 million shares at the subscription price according to its stake of 50% plus one share in Postbank. As far as the subscription price does not exceed €18.25, Deutsche Post has also committed to subscribe to all shares that are not taken up by the market at the subscription price. The maximum commitment by Deutsche Post thus would not exceed €1 billion, which it would finance out of the Group’s cash flow. As a result of this measure, Deutsche Post’s stake in Postbank would initially increase to a maximum of 62.52%. The agreement with Deutsche Bank AG, under which it will – upon antitrust and regulatory approvals – acquire a 29.75% stake in Postbank from Deutsche Post in the first quarter of 2009, remains in place.

Exit from the domestic express market in the USA and strict cost management

Deutsche Post World Net announced on 10 November 2008 that it will exit the domestic express business in the USA at the start of 2009. The international express offering in the US will be maintained on today’s level. Total costs for restructuring the US express business are now at €3 billion, of which the majority will be recorded in the current year. As part of the Roadmap to Value, the Group will achieve its goal in 2008 to generate earnings of €500 million. A strict cost reduction programme has been initiated in place of the previous target of an additional €500 million in 2009. Starting 2009, the Group aims to reduce its annual spending by €1 billion by the end of 2010.