Francotyp-Postalia Extends Direct Distribution in Germany

Birkenwerder, 16th June 2008.

• Company strengthens market position in the Rhine-Main region
• Takeover of a further 1,700 corporate customers 
• Strategic move to strengthen customer loyalty

Birkenwerder, 16th June 2008. Francotyp-Postalia Holding AG, a worldwide service provider for the outgoing mail market, is strengthening the high-margin direct distribution of its franking machines business. The Company's German distributor, Francotyp-Postalia Vertrieb und Service GmbH, has just taken over around 1,700 customers in the Rhine-Main region from its former trading partner MW Mailtec. The new clients are concentrated around Frankfurt and Wiesbaden.

This is a strategically important step for Francotyp-Postalia, enabling it to expand its direct distribution presence in Germany. Last year, the Company successfully took over direct distribution in the Northern Region in Germany. "Eliminating trader margins, together with the reorganisation of our distribution network in Germany, will increase profit margins for the FP Group overall," explained CEO Dr. Heinz-Dieter Sluma, in office since 1st January 2008. "At the same time we will have a direct line to our customers".

This close customer loyality is seen by the FP Group as an area of additional potential in the high-growth market for mailstream services. The German mail market has already been liberalised, and the FP Group is pushing its tailored solutions for outgoing mail to corporate customers. The Company is systematically extending its value added chain by offering services such as consolidation and outsourcing. In Q1 2008, the FP Group nearly doubled revenues in this area compared to the same period of the previous year.

Contact:

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