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The GroupInvestor Relations
Bonn 11.January 2005

Telekom and Deutsche Post World Net Broaden their Cooperation

DHL takes over complete distribution logistics

DHL, the express and logistics expert of Deutsche Post World Net, is assuming comprehensive services on behalf of Deutsche Telekom. In the future, DHL Solutions and DHL Express will be fully responsible for storing and distributing products of the Telekom divisions T-Mobile and T-Com in Germany. The five-year contract takes effect on September 1. With this cooperation, the two groups broaden the logistics partnership that they established in 2000.

The core of the agreement is a DHL distribution center in Euskirchen (North-Rhine Westphalia) that will be equipped with state-of-the-art warehousing and picking technology in the coming months, and will use the latest RFID technology in all areas. Products such as cellular and fixed-network equipment, personal computers and telephone cards will be supplied to specialist retailers, 500 "T-Punkt" Telekom stores and end customers from this central warehouse. It will also enable technicians across Germany to obtain urgently needed spare parts overnight.

"DHL has already proven itself to be a reliable partner. This new constellation now enables us to enhance our service and delivery capacity on behalf of our customers," says Thomas Scheib, Vice President Logistics at T-Mobile. Aside from the partners' wealth of experience, the possibility of bundling and thus optimally coordinating the tasks of warehousing and transportation under one roof was cited as a key reason for the extension of this cooperation.

"This agreement continues and intensifies our cooperation with Deutsche Telekom AG in the field of distribution," say Michael Engler, Director Marketing and Sales DHL Solutions, and Hansjörg Votteler, Sales Director DHL Express. Both consider the extension of this partnership to be an endorsement of DHL's industry management strategy: "We are pooling the competencies of the different DHL Business Units to offer complex, tailor-made logistics solutions - to fulfill sector-specific requirements and cover the entire supply chain."

The services that DHL has tailored specifically to meet the requirements of Deutsche Telekom include same-day order processing and next-day delivery of products.

DHL has also underscored its innovative spirit by offering an individual container system for supplies to the "T-Punkt" Telekom stores. In the past, products were usually delivered in cumbersome roll containers. Starting next year, products will also arrive in smaller, stackable containers and will already be pre-sorted. "This will mean enormous savings in time and effort for us, and facilitate handling at the Telekom stores - a clear cost advantage," says Thomas Scheib, commenting on the agreement.

In addition, Telekom can draw on a variety of other services and products. For example, DHL offers overnight delivery of supplies to Telekom technicians, pick & pack services, advertising campaign business, order management, operation of an order hotline and invoice printing on behalf of its customers.

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