Press Release

TNT announces interest to explore strategic partnership with Royal Mail

Publish Date : 16 December 2008 at 16:20 CET - Amsterdam, TNT has today expressed its interest to explore a strategic partnership with Royal Mail. The publication of the Hooper Commission report today, which sets out a number of critical requirements for a sustainable future for Royal Mail, forms the background of TNT's renewed expression of interest.

Peter Bakker, CEO of TNT, said: ‘'Royal Mail and TNT have explored partnership opportunities in the past. The views of the Hooper Commission provide a clear framework for the UK postal sector going forward. Assuming the UK government implements these recommendations, I think that exploring a strategic partnership with Royal Mail makes a lot of sense for both our companies.''

Since the Secretary of State for Business announced a comprehensive review of the developments in the UK postal services market last year, TNT has been invited to actively share its views, just like other stakeholders. The emerging views of the Hooper Commission - that focus mainly on the sustainability of the USO and Royal Mail - form a clear frame of reference for the development of the postal sector in the UK. The Hooper Commission indicates the need for a strong strategic partnership for Royal Mail, the resolution of pension liabilities and development of a predictable and stable regulatory environment.

The objective of the partnership would be to help develop Royal Mail into a modern, best-in-class postal operator that combines excellent mail service with solid and sustainable financial performance as part of a broader global network. The scope of a potential partnership would exclude Post Office retail outlets given its public service network function.

TNT's proposal

TNT's proposal to Her Majesty's Government is to enter into discussions on a strategic partnership with Royal Mail with the objective to reach agreement on key terms and conditions for a substantial minority shareholding. TNT's proposal assumes the implementation of the key recommendations of the Hooper Commission that are instrumental to a sustainable future for Royal Mail.

TNT's track record in Mail and Express

TNT is a leader in the postal services sector. TNT's mail division generates revenues exceeding €4.2 billion, employs 85,000 people and delivers more than 7.5 billion addressed items. TNT Post is the universal service provider in the Netherlands, achieving a consistently high next day delivery quality. Over the last five years, TNT has successfully developed a significant presence in postal markets outside the Netherlands.

TNT is the number one operator in both national and intra-European express services and is quickly expanding its leadership position in emerging markets like India, Brazil and China. TNT Express serves over 200 countries, with revenues exceeding €6.5 billion and employing more than 75,000 people.

In the UK, TNT Post handles more than 2.3 billion addressed mail items per year and employs close to 1,000 people. TNT Express employs over 11,000 people and operates 3,500 vehicles out of 70 strategic locations. The combined revenues of TNT in the UK are around €1.6 billion. TNT remains committed to growing its mail and express businesses in the UK.

About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximise its network performance. TNT serves more than 200 countries and employs more than 161,500 people. Over 2007, TNT reported € 11 billion in revenues and an operating income of €1,192 million. TNT is officially quoted on the Amsterdam Stock Exchange. TNT recognises its social responsibility and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world. Our efforts are being recognised; in 2008 TNT again reached the highest score of all companies included in the Dow Jones Sustainability Index and in the Carbon Disclosure Project in the carbon intensive sector.

Warning about forward-looking statements
Some statements in this press release are "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this press release and are neither predictions nor guarantees of future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Page publication date: 16 December 2008 at 16:20 CET