DHL to Build Largest U.S. Service Center in New York

$181 million investment to upgrade services for customers to and from Manhattan

$181 million investment to upgrade services for customers to and from Manhattan

Plantation, FL — January 11, 2006 — DHL, the world's leading global express delivery and logistics company, today announced plans to build its largest U.S. service center facility in New York City, N.Y. The $181 million investment will consolidate two existing service center locations into a new 161,125-sq.-ft. facility to serve Manhattan pickup, delivery and sorting operations.

Located to provide rapid egress and regress through below-grade access through the Lincoln Tunnel, DHL said the new service center will increase throughput capacity from 10,000 to 15,000 pieces per hour, enhance the efficiencies of the New York City DHL operation by combining multiple operations under one roof, and secure DHL's ability to maintain a high level of service for years to come.

DHL is continually looking for ways to improve and enhance service through investments in our U.S. operations, said Mark Munoz, senior area vice president of operations for DHL. This new facility will serve as our gateway to the New York City market, and, with the strategic location near the Lincoln Tunnel, will provide enhanced service levels for all of our local customers as well as accommodate growth for the next 20 years.

The new facility is expected to handle a wide variety of shipments — including domestic and international parcels as well as palletized and container freight — and initially employ over 400 personnel when fully operational in May 2006.

The New York City facility is one of many initiatives DHL has undertaken to improve U.S. network efficiencies, cost containment and connectivity system-wide. Last year, DHL Express announced a $1.2 billion network investment program in the U.S. market, which has resulted in a newly expanded primary air and ground hub in Wilmington, Ohio, seven new Regional Sort Centers and a recently completed West Coast distribution facility.

— In order to perform on a world-class level, companies must redesign the supply and service chains to meet market demands. Dramatic changes are in order. Read more in the article "Leveraging Supply Chain Logistics: Get Physical and Agile."