Press Release

Record margin in Express and strong margin in Mail

29 July 2005, 08:00 CET - Q2 2005

Strong margin in Mail of 20.8%
Record high margin in Express of 10.1%
Mixed picture in Contract Logistics
Interim dividend up 10% to 22 cents

Key numbers
	Q2 2005 €mil	Q2 2004 €mil	% Change	HY 2005 €mil	HY 2004 €mil	% Change
Revenues	3,385	3,056	10.8%	6,661	6,037	10.3%
Operating income (EBIT)	342	352	-2.8%	646	648	-0.3%
Net income	210	210	0%	403	396	1.8%
Operating cash flow	384	115	233.9%	459	406	13.1%
Earnings per share (€ cents)	46.1	44.2	4.3%	88.6	83.3	6.4%

Operating margins
	Q2 2005	Q2 2004	HY 2005	HY 2004
Mail	20.8%	23.4%	21.4%	23.2%
Express	10.1%	8.8%	9.1%	7.4%
Logistics	3.4%	4.1%	2.4%	3.2%
Contract logistics	*3.7%*	4.1%	2.6%	3.2%
Freight Management	*2.2%*	nm	1.5%

CEO Peter Bakker:
“In the second quarter of this year we see a continued good performance of our Mail and Express divisions. The Mail division reported another strong operating margin, despite higher pension costs, and our European Mail Networks business continued to record strong organic revenue growth of 20%. Express revenues grew double digit and operating income was up 28%, reaching another margin record. The division is firmly on track to reach its ambitious target of a 10% operating margin in 2007. In Logistics, our freight management operations continue to make progress but achieving growth in some of our contract logistics business has been difficult. We have reviewed our French Logistics business unit carefully and today we announce our plans - we intend to withdraw from basic transportation activities and refocus on the areas of contract logistics where we can earn our cost of capital.”