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The GroupInvestor Relations
beijing 30.August 2006

New DHL-Sinotrans Branch in Zhenjiang a boost to

DHL-Sinotrans, the leading express company in China, today announced the opening of its branch in the city of Zhenjiang - one of the cities enjoying high economic growth in Eastern China’s Jiangsu province. The new branch, designed to better serve the growing customer demand in Zhenjiang for best-in-class express services, will further expand DHL-Sinotrans’ geographic footprint in Eastern China, and is another demonstration of the company’s commitment to the Yangtze River Delta (YRD) in facilitating the development of trade and economy.

Zhenjiang, one of the key cities with great potential in the YRD area, achieved a total value of nearly US$4 billion in imports and exports in 2005, representing a 14.4 percent growth over the previous year, with exports increasing by 34 percent. The fast economic development, particularly the rapid growth in foreign trade, has increased the demand for express and logistics services.

“To be competitive in a rapidly evolving market, we must be well-prepared to serve our customers’ growing demands. DHL’s development in the YRD area is in line with the overall development of the economy in the area. The opening of the new branch will not only bring us closer to our customers in Zhenjiang, but also expand our already substantial network in the area,” said Wu Dongming, Managing Director of DHL-Sinotrans.

“As a trade facilitator, DHL-Sinotrans aims to become the first choice of our customers in helping them become more competitive in international trade,” he added.

DHL-Sinotrans currently has footprint in 17 cities in East China, including Shanghai, Hefei in Anhui province, Nanjing, Suzhou, Wuxi, Yangzhou, Nantong, Kunshan, Changzhou and Zhangjiagang in Jiangsu Province as well as Hangzhou, Ningbo, Shaoxing, Jiaxing, Jinhua, Wenzhou and Taizhou in Zhejiang Provice. The newly opened Zhenjiang branch further cements DHL’s network infrastructure in the YRD area, and will provide its customers with a full range of express and logistics services to support the region and China’s burgeoning economic growth.

Under its First in China strategy launched in April 2006, DHL-Sinotrans will increase the number of branches from 56 to 72 nationwide by the end of the year, boosting its role as a trade facilitator and providing even more efficient support for the economic development among the different regions in China. 3 of the 16 new branches are located in the YRD area. With this strategy, the network will be further expanded in the area.

Since its establishment in 1986, DHL-Sinotrans is dedicated to expand its network infrastructure in the country in response to the needs of customers and market trends. Its geographic network now covers 318 cities and 95 percent of China’s major population and business centers. With close to 40 percent of the express delivery market in China, DHL-Sinotrans has successfully maintained the leadership position in China.

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