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DPWNInvestor Relations
Rotterdam 26.August 2003

DHL and McGregor expand logistics partnership

McGregor Fashion Group, a well known European fashion house founded in 1993, has further expanded its logistics partnership with DHL Solutions with a new contract for warehousing and the delivery of their fashion products to McGregor business customers in Europe. The new ten-year contract expected to generate tens of millions of Euros and covers warehousing and pick & pack operations within DHL Solutions. The McGregor Fashion Group is already making use of all logistics within DHL: DHL Danzas Air & Ocean, DHL Solutions including fashion transport, DHL Express and DHL Freight. It also shows that the bundling of all of Deutsche Post World Net's express and logistics services under the DHL umbrella brand accommodates the international requirements of major Deutsche Post World Net customers.

McGregor Fashion Group was already one of the major customers in DHL Solutions Benelux warehousing and distribution network even before signing the new contract. McGregor's central European distribution center in Waalwijk, in the Dutch province Noord Brabant, serves as the main hub for B2B distribution in Europe. This facility was also the departure point for the first deliveries McGregor's clothing dispatched to Benelux stores back in 1994.

The new contract foresees in building a complete new mechanised put-to-light system in the current warehouse facility in Waalwijk in order to handle increased volumes because of integration of new brands (f.e. Emergo Textile Projects, Gaastra) and "autonomic" growth of existing brands. Besides handling flat packed garments DHL Solutions will remain operating its GOH (Garment on hangers) and reconditioning capability. Deutsche Post World Net's strategy of bundling express and logistics activities translates into sizable advantages for McGregor. Global reach, one-stop shopping in the area of B2B distribution, the broad range of services on offer and their incorporation into tailor-made solutions are important pluses which provide even bigger advantages with the new DHL. DHL and McGregor Fashion Group both agree that the enhanced service offerings will further increase the opportunities to jointly expand logistics solutions for McGregor products.

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