TNT Mail UK wins Lloyds TSB business

TNT Mail UK, part of mail, express and logistics company TNT N.V., has secured a contract with Lloyds TSB to handle over 100 million items of its mail.

The deal will be one of the largest contracts awarded by a national mailer to a new entrant in the newly deregulated postal market. Lloyds TSB joins other TNT Mail UK clients such as Sky, Caudwell Communications, Express Gifts, Booker and others operating under TNT Mail UK's access agreement with Royal Mail.

This is a significant deal for TNT Mail UK and takes its expected volume for 2005 to over 500 million items with hopes to exceed this volume as new clients come on stream.

Lloyds TSB will be using TNT Mail UK's Premier service to carry out upstream mail services, giving it a 48-hour service from collection to delivery. Lloyds TSB and the national postal company will also have a contractual relationship for final sort and delivery over the final mile.

Lloyds TSB is the UK's fifth largest bank with around 16 million customers. TNT Mail UK 's sister company, TNT Managed Services, already has a longstanding relationship with the bank to distribute internal mail between branches.

One of the factors that influenced the decision for Lloyds TSB was its trust in TNT's capability and service. A further service improvement for the bank includes the tracking of all mail handled by TNT Mail UK, from collection, to the point of handover to Royal Mail for final mile delivery.

Nick Wells, managing director TNT Mail UK, said:

"TNT Mail UK continues to win blue-chip clients in the face of stiff competition. This is a major win for us and we hope to grow our presence in this sector in the coming months.

"Lloyds TSB has confidence in our size, scale and resources, which we leverage through TNT and our heritage as the world's most efficient postal operator.

"This win demonstrates that our offer of innovative systems, an enterprising approach and competitive pricing, is attractive to customers and we look to grow market share in other sectors.

"I reiterate that business cannot afford to ignore the opportunities now available in the deregulated postal market. Finance directors of all companies should be looking at how we can make their mailing budgets work harder for them."

Phil Cresswell, Head of Supplier Management, Lloyds TSB, said:

"We chose TNT Mail UK as our partner because it has the ability to deliver on what it promises and a heritage of excellent customer service."

TNT Mail UK is the only new entrant in the deregulated postal market to also offer a business to consumer end-to-end delivery service through its relationship with Express Dairies, with the potential to reach six million households.

Ends

Notes to Editors
At present financial businesses are not exempt from VAT on financial mail.

This agreement, whereby the customer maintains a relationship with both TNT Mail UK and Royal Mail, offers a solution which allows Lloyds TSB to benefit from a more cost efficient service. TNT Mail UK carry out the collection, sortation and distribution of mail to Royal Mail at a competitive price which includes VAT and Royal Mail provide final mile delivery services which are exclusive of VAT.

TNT Mail UK signed its downstream access agreement with Royal Mail in April and began operations in late August. Since its launch, TNT Mail UK has developed three products for customers: TNT Mail UK Premier – a 2 Day Premier Business Service with 'final mile' delivery by Royal Mail e.g. bills, statements, direct mail and general customer correspondence; TNT Mail UK PremierSort – the collection and processing of unsorted mail before 'final mile' delivery by Royal Mail; and, TNT Mail UK End to End – a delivery service to defined geographic areas for heavier weighted, non-time sensitive items using its own delivery networks e.g. Express Dairies delivering catalogues, magazines, books and contact lenses.

TNT N.V. is a global provider of mail, express and logistics services. The group employs over 160,000 people in 63 countries and serves over 200 countries. For 2004 the company reported sales of € 12.6 billion. TNT N.V. is publicly listed on the stock exchanges of Amsterdam, New York, London and Frankfurt.

Photography available on request.

For further information, please contact (not for publication):
Daphne Andriesse, Senior Press Officer TNT Media Relations
Tel: + 31 20 500 6224
Mobile: +31 6 109 187 90
E-mail: [email protected]

TNT Ups Share of U.K. Postal Market
TRAFFIC WORLD, Sec. AIR, p WP 05-18-2005

TNT Mail UK upped its position in the deregulated postal market in the United Kingdom significantly after inking a contract with Lloyds TSB to handle a large share of its mail. A subsidiary of TNT, the Dutch mail and logistics company formerly known as TPG, TNT Mail UK will handle 100 million items for Lloyds TSB, Britain's fifth largest bank, under one of the largest contracts awarded by a national mailer since the U.K. postal market was deregulated in early 2003. With the new business, TNT said it expects to handle more than 500 million items in the U.K. in 2005.  "TNT Mail UK continues to win blue-chip clients in the face of stiff competition," said Nick Wells, managing director TNT Mail UK. "This is a major win for us and we hope to grow our presence in this sector in the coming months." Other TNT Mail UK clients include Sky, Caudwell Communications, Express Gifts, Booker and others operating under TNT Mail UK's access agreement with Royal Mail.