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The GroupInvestor Relations
Shanghai 13.October 2005

DHL inaugurates logistics management University in Shanghai

New facility highlights DHL’s commitment to training and raising industry professionalism in China and the Asia Pacific

DHL, the world’s leading express and logistics company, today announced that it has established a management training facility in Shanghai, China, named the DHL Logistics Management University (DHL LMU), for its employees and customers in Asia Pacific. The setting up of the DHL LMU is in anticipation of the continued strong growth that DHL will experience in the coming years, and is also in line with its commitment to raise the standards and level of professionalism of its employees and the logistics industry in China and the Asia Pacific region.

“The DHL Logistics Management University will provide the platform for generating world-class logistics and supply-chain specialists for the DHL network in Asia Pacific. We are confident that it will build and attract the pool of talent required to manage the strong growth in Asia Pacific, particularly China. These specialists will also help to raise the professional standards in the industry,” said Scott Price, Chief Executive, DHL Express - Asia Pacific.

“Being an Employer of Choice, we also want to create an educational environment which encourages professionalism, creativity and innovation, so that we can continue to develop high quality products and services that meet all our customers’ transport and logistics requirements,” he added.

The Asian transportation market is projected to grow from US$700 billion (€581 billion) today, to over US$1.3 trillion by 2020 , with most of the growth in the North East Asian mega market. In China, the air express market is expected to continue to grow at 30 – 35 per cent, or three times the global average growth of 11.2 per cent.

The setting up of the DHL LMU reflects DHL’s foresight in building a pool of logistics specialists in China and the region, as well as investing in network infrastructure to meet strong growth. Last week, DHL announced an additional US$110 million investment to expand its DHL Central Asia SuperHub, its dedicated and purpose-built air express cargo facility at the Hong Kong International Airport, six years ahead of schedule. This is part of DHL’s US$1.6 billion network infrastructure investment plan in Asia Pacific, from 2000 through to 2005 and beyond.

The DHL LMU complements DHL’s Asia Pacific Learning Centre, based in Singapore, which is tasked with the responsibilities of designing and implementing training programs, including e-learning modules for DHL staff in the region. Nearly 1,000 participants attended the AP Learning Centre programs in 2004.

In order to better serve customers and support their strategic ambitions in China, DHL has established a dedicated Global Customer Solutions (GCS) regional team, based in Shanghai. With the potential to develop new supply chain models and solutions for the rapidly growing Chinese market, the team will help to develop these initiatives, maximize new local market opportunities, and be in closer proximity to customers. GCS is DHL’s dedicated global sales relationship management unit.

University tie ups with renowned schools

The DHL LMU, located at the Headquarter Building in the central business district of Shanghai, began operations in mid September 2005 and is targeted at DHL’s employees and corporate customers in junior, middle and senior management positions across the Asia Pacific region. The university aims to offer 7,500 training positions in the first year of operations and train 2,000 employees by the end of 2006, with the majority of graduates in the inaugural classes coming from China.

“Shanghai has been chosen for its accessibility and proximity to major cities in the Greater China and Korea area where the growth is most robust,” said Jerry Hsu, President of DHL Express for Greater China and Korea. “Besides improving the skill sets and business knowledge of our employees, the university will also provide training to our customers to enhance their logistics and supply-chain management knowledge.”

In addition, DHL has tied up with Fudan University to promote in-depth research and development in the fields of international logistics to enhance the content of the DHL LMU’s programs and capabilities. This research platform would also serve as an incubator for product and process innovation for DHL and its customers.

Another initiative involves the China-Europe International Business School, where DHL will collaborate with the school’s executive development division to develop a customized Management Development Fast Track program targeted at DHL’s high-potential employees in Asia Pacific.

DHL will be offering DHL scholarships to undergraduates and MBA students. Joachim Kayser, Managing Director Corporate Executives, Deutsche Post AG, said, “This is in line with DHL’s efforts to attract the best talent. These scholarship recipients will be given opportunities to practice what they’ve learned in our dynamic environment through our globally managed industry attachment programs.”

University Programs

Driven by DHL’s defined business strategies, the DHL LMU will design, develop and deploy programs broadly categorized as skilled-based functional training, and management and leadership development programs.

Over 20 lecturers and course trainers comprising experienced senior executives from DHL and industry experts will conduct more than 40 programs that aim to deliver tangible business results and a sustainable pool of business and operational leaders. Courses will be conducted in three languages: Chinese, Korean and English.

Trainees who successfully complete the management development programs at the DHL LMU will be given credits in specific elective modules at universities and business schools that DHL or parent company Deutsche Post World Net has partnerships with. These schools include the Wharton Business School in the United States, and the Australia Graduate School of Management.

Since 2003, DHL has invested US$273 million in China, which it first entered in 1986 as the first foreign express company. Over the years, through the DHL-Sinotrans joint venture, it has successfully built a network infrastructure offering unrivalled geographical coverage and innovative products with a customer-focused approach across all points of the supply chain. To date, DHL has more than 56 branches with more than 160 facilities providing international and domestic express services that reach 318 cities in China, three Express Logistic Centers in Shanghai, Guangzhou and China and16 Spare Parts Centers.

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