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The GroupInvestor Relations
Taipei 12.July 2006

Construction begins on DHL's NT$56 million new Tainan Service Center

DHL, the world's leading express and logistics company, announced that construction began at its new Tainan Service Center. Due to the rapid expansion of businesses in the Tainan area, a newer and bigger service center is needed to meet the growing customer demands. In order to continue its commitment to Southern Taiwan and to improve its logistics services, DHL has decided to build a larger service center.

“The new service center is a sign that business has been growing fast in this area,” said Connie Tang, General Manager DHL Express Taiwan. “Once the new facility opens, it will bring enhanced, more efficient and diverse express and logistics services to customers, helping them reach out to more global opportunities.”

The NT$56 million Tainan Service Center is built according to DHL Asia Pacific Transportation Standardization Programme. It is part of DHL's NT$1 billion Anchor Investment Program (please see note below). The new facility underlines DHL's commitment and strong faith to Taiwan’s market.

DHL's two-story Tainan Service Center is a large-scale operations facility, spanning an area of about 1500 m². The first floor will be used for operations and is designed with drive-in access for courier vehicle, while the second floor will serve as office space. The facility is expected to process 2,000 shipments per day.

The new facility is expected to be completed in November this year. It is located on the high-traffic Wen-hua Road in Jen-de Township, which is a strategic location between the Tainan Airport, Tainan City, and the Jen-de exit of the National Highway. When completed, the new facility's service area will cover Tainan City, Tainan County, as well as the Lu-chu, Hu-nei, Kang-shan and A-lien townships within Kaohsiung County.

Additionally, key industrial parks and storage facilities, such as the Tainan Science Park and the Lu-chu Science Park, are located within the service radius of the service center. In the future, the service center will be able to link the emerging new businesses of this area to the global markets. It is also an important injection of vigor into this area, which is going through a fast-paced transition from traditional manufacturing to high-tech industries.


Note:
Anchor Investment Program: DHL Express Taiwan announced in early 2000 its Anchor Investment Program, which has a total investment amount of NT$1 billion, chiefly toward the construction of large-scale service centers. The locations of these service centers are strategically chosen for their ease of transportation and proximity to customers, in order to raise service efficiency and quality, as well as reduce transportation time to and from the international airport.

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