DHL forms strategic partnership with Polar Air Cargo

Partnership strengthens DHL’s market leadership in Asia Customer service to improve through shorter Trans-Pacific transit times DHL to cement partnership through minority shareholding in Polar DHL, the world’s leading express and logistics company, is forming a strategic partnership with Polar Air Cargo Worldwide, Inc., a wholly owned unit of Atlas Air Worldwide Holdings, Inc. (AAWW), a leading provider of global air cargo services. The partnership will significantly improve service to DHL Express customers shipping goods between the U.S. and Asia by securing long-term access to greater air capacity on Trans-Pacific air routes, reducing transit times and increasing reliability of delivery on both sides of the Pacific. The commercial agreement will run for up to 20 years and will provide DHL Express guaranteed access to aircraft capacity in key global markets. In addition, DHL will have access to additional available aircraft capacity from Atlas Air, Inc., another subsidiary of AAWW, as agreed between the parties. The long-term partnership will provide Polar a long-term committed revenue stream, and strengthen the company’s position as a reliable source of main deck freight capacity. With this strengthening, Polar’s existing customers will be assured continued access to reliable, high quality service levels. “This key strategic partnership ensures we can meet the rapidly rising demand for air cargo capacities between the U.S. and Asian destinations. DHL Express is already the market leader in Asia and the partnership with Polar will help us offer even higher quality levels to customers, while at the same time improving profitability on the fast-growing routes between the U.S. and Asia,” said John Mullen, CEO of DHL’s Express division. “The Trans-Pacific route is one of the most rapidly growing and competitive trade lanes globally and adding capacity through an even stronger presence in the U.S. is a crucial factor in supporting our dynamic Asian business. Polar is the ideal partner to achieve that. Our long-term partnership will benefit both companies and enhance competition in the express delivery sector of the air cargo market.” Mr. Scott Price, CEO DHL Express – Asia Pacific, noted, “This partnership reinforces DHL’s market leading position in the region, ensures capacity for future growth, and provides our customers with quicker time-to-market capabilities between the United States and Asia Pacific. We are living up to our brand promise of helping to make our customers successful.” To cement the relationship, the parties have signed a letter of intent under which DHL will invest $150 million (119 million euros) to acquire a minority 49 percent equity stake in Polar, including a 25 percent voting interest, consistent with all U.S. laws and regulations. The payment will be in cash, $75 million to be paid upon closing of the transaction, and $75 million to be paid in two installments on January, 15, 2008 and Nov. 17, 2008 subject to certain acceleration provisions. In addition, DHL will enter into a 20-year block space agreement with Polar to obtain guaranteed capacity on routes to major Asian destinations. The transaction, subject to regulatory approvals and completion of definitive documentation, is expected to close in late 2006 or early 2007. Polar will continue to operate as an independent company and there will be no integration with DHL or any of its units. William J. Flynn, President and CEO of AAWW, said, “This is a landmark partnership for our Company. Our strategy has been to maximize the value and potential of our scheduled-service business, and this transaction accomplishes that goal. DHL is a pre-eminent express service provider and the world’s largest buyer of third-party airlift capacity. Their investment and the long-term commercial agreement will markedly strengthen our scheduled-service business, and will enhance our ability to provide customers with superior service in key international markets. Further, it provides our Company with a significant increase in our cash liquidity and a very attractive long-term revenue stream. Indeed, this transaction reinforces our leadership position as an outsource provider of air cargo services, and greatly enhances the value of our Company.” DHL operates in all major American and Asian markets, offering a wide range of mail, express, logistics and air and sea freight products. About DHL DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source. DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. Over 285,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations. DHL is a Deutsche Post World Net brand. The group generated revenues of €45 billion in 2005. About DHL Thailand DHL Thailand offers customers a comprehensive range of logistics solutions through three business units: DHL Express, DHL Global Forwarding and DHL Exel Supply Chain. Customers can enjoy the convenience of one-stop-shop service, from shipping documents to containers, delivered by 1,700 DHL staff. With over 20 locations around Thailand, DHL’s services cover 76 provinces in the country. For further information, please visit our website at http://www.dhl.co.th Press contact: Ms. Piyalak DHL Express International (Thailand) Ltd. Tel: 0-2345-5602 Fax: 0-2285-5732 Email: [email protected] Ms. Dutduan or Ms. Visa Hill & Knowlton Thailand Tel: 0-2627-3501 ext 114 or 107Fax: 0-2627-3510 Email: [email protected] [email protected]

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