Francotyp-Postalia and Deutsche Post AG enter important partnership agreement

Birkenwerder, 27 May 2008

• Future cooperation between the companies under an extensive agreement
• Framework conditions govern the joint operations
• FRANKIT digital franking of mail ensures smooth, efficient handling of mail

Birkenwerder, 27 May 2008. The company Francotyp-Postalia Vertrieb und Service GmbH, a sales entity of Francotyp-Postalia Holding AG (FP) and market leader for franking machines in Germany, has entered a new partnership agreement with Deutsche Post AG. This covers cooperation regarding FRANKIT franking machines. "We welcome this new agreement and see it as confirmation of the many years of excellent cooperation between ourselves and Deutsche Post", said Dr Heinz-Dieter Sluma, chairman of Francotyp-Postalia Holding AG.

As well as framework operating conditions covering such items as the certification and operation of franking machines, the new agreement for the first time places greater focus on the cooperation side. To make it a strategic partnership, the new contract governs the companies' common efforts to improve customer satisfaction.

Focus on customer satisfaction

"A basic part of the expansion of our services consists in ensuring there is close collaboration in partnership with the makers of franking machines", Ingo Bohlken, Deutsche Post's Marketing Brief divisional director explains. "The contract covers key details for the certification of future franking machines and the joint collaboration measures and offers great advantages for all parties."

FRANKIT digital franking guarantees a maximum of innovation that is directed at satisfying its customers' growing requirements. "We are a dominant partner, holding a 45% share of the German market with around 100 000 franking machines. We focus on ensuring customer satisfaction by providing an excellent level of service combined with technical innovation", Dr Sluma, the FP chairman, explains.

With its innovative technology, the Francotyp-Postalia franking systems offer user-friendly machines which deliver a correct franking imprint using new matrix technology; also they are designed to ensure that payment for franking is dealt with simply and reliably in compliance with enhanced security standards. Customers who opt for an FP franking machine will benefit from a rapid process right through from purchase and registration to productive operation. All FP customers who already have a franking machine - whether mymail or centormail - can continue processing their outgoing mail in the normal way.

For contact:

Francotyp Postalia Holding AG
Investor Relations
Sabina Prüser
Tel:  +49 (0)3303 525 410
Fax:  +49 (0)3303 53707 410
Email: s.prueser@francotyp.com

The FP Group

With its products and services, Francotyp-Postalia Holding AG covers the entire value-added chain in the outgoing mail market – ranging from franking and inserting machines to collection, sorting and consolidation of outgoing mail as far as electronic hybrid mail solutions for efficient 21st century mail handling. The FP Group which is headquartered in Birkenwerder near Berlin can thus offer business customers of all sizes customised Mailstream services. It has many branches throughout the industrialised countries and holds a global market share of 9% for franking machines. With a company history reaching back more than 80 years, the FP Group today benefits in all its markets from the growing liberalisation of the postal markets and the increased trend among companies to outsource their outgoing mail to professional service providers. During fiscal year 2007, with its approximately 1100 employees this company generated 145.1 million euros turnover and an EBITDA of 26.3 million euros.