Changes to the U.S. Network

We are taking three actions: Changes to our infrastructure and aviation, and a reduction on administrative and overhead costs.

1. Aviation: Working with a single air provider - UPS
2. Infrastructure Network: DHL is reducing infrastructure network capacity by approximately 30%. This includes:
- Station network rationalized by 34% via service center closures and consolidations
- Pickup and delivery routes rationalized by 17%
- Ground linehaul network rationalized by 18%
3. Targeted SG&A (sales, general and administrative) reductions of $130 million

Impact to Customers

- DHL will continue to deliver to 100% of the zip codes we deliver to today
- DHL will continue to pick up 99% of the volume we pick up today
- DHL will leverage partnerships for final mile for approximately 2.4% of current delivery volume to sparsely populated areas
- Overall, less than 4% of our current network shipment volume is impacted. Overall network impact is a factor of two components:

0.6% of pickups eliminated
3.3% of deliveries result in changes to transit time
= 3.9% overall volume impact

Entire press release can be read here: http://www.dhl-usa.com/about/pr/PRDetail.a...08&seq=1206