Dear shareholders,

The past few weeks have been quite turbulent for the global economy. In light of the tumultuous developments on the capital markets it now appears that the possibility of a global recession in the near future cannot be ruled out. We are preparing for this and bracing your company for the global economic storm. We have already begun tackling key strategic issues.

For Postbank, we have found the perfect partner in Deutsche Bank, which will assume a minority interest of 29.75% in Deutsche Postbank AG in the first quarter of 2009. We see it as our obligation to support our subsidiary on its way to continued profitable growth, which is why in October we committed ourselves – as the majority shareholder – to participate with up to 100% in Postbank’s planned capital increase.

Since May we have rigorously executed our restructuring plan for the express business in the USA. Nevertheless, the weak US economy and reduced shipment volumes are forcing us to take drastic measures. We will therefore exit the domestic express services market in the United States and concentrate on our core competence there, the international express business. This way we will be able to reduce our losses more quickly than originally planned.

In addition, we are also laying the foundation for sustainable and profitable growth in the Group through strict cost management. We have stepped up our Roadmap to Value programme with additional cost-cutting initiatives. Starting 2009, we aim to reduce our annual spending by €1 billion by the end of 2010 in order to prepare the Group for the challenging economic times that lie ahead.

All in all, we are satisfied with our nine-month results. Revenue from continued operations (without Postbank) increased by 2.3% to €40.5 billion and underlying EBIT rose 1.3% to €1.6 billion in the first nine months of 2008. Nonetheless, given the current economic climate, we have adjusted our 2008 forecast for profit before non-recurring effects to approximately €2.4 billion from €2.9 billion (without Postbank).

I am confident that the measures we are taking have laid the foundation necessary so that your company weathers even the strongest economic storm.

Bonn, 10 November 2008

Yours faithfully,