Norway Post establishes CityMail in Denmark

Norway Post is to establish CityMail in Denmark, thereby offering Danish enterprises a new postal service for addressed, pre-sorted mail with a high degree of accuracy and competitive terms. Norway Post will strengthen its Nordic position by cultivating the CityMail concept in both Sweden and Denmark.
At a press conference in Copenhagen today, Norway Post presented plans to establish a subsidiary of CityMail in Denmark. Initially, once the company is in operation in 2007, customers in the Copenhagen area will be offered a new distribution service for mail weighing over 50 grams. In the longer term, extending the service to other parts Denmark will be of interest. When the Danish postal market becomes fully liberalised, probably in 2009, this service may be extended to include all letter mail.

“We wish to offer our customers Nordic postal solutions. Establishing CityMail in Denmark will complement our strategy and strengthen Norway Post – in the domestic market, too,” says CEO of Norway Post, Dag Mejdell.

INDUSTRIAL POST
CityMail distributes pre-sorted, addressed mail, e.g. Direct Mail, information newsletters and customer magazines for companies and public authorities. CityMail was founded in Sweden in 1991 and has established a strong market position as a highly accurate and reasonably priced distributor of letter mail. Experience from Sweden shows that prices have fallen while the level of quality has risen since CityMail was established.

“We really want to make a start in Denmark and have a number of Nordic customers who have encouraged us to do so. To begin with we are concerned with adapting the Danish rules, in order to establish fair competitive terms in which we can operate a postal service, in such a way that makes it easy to be a consumer,” says Dag Mejdell.

BACKGROUND
CityMail distributes post “at the right time, to the correct address, at a lower cost” to approximately 40 per cent of Sweden’s population through deliveries in the Stockholm, Gothenburg and Malmø areas, and also on the island of Gotland. Since it was founded in 1991, the company has established a market share in Sweden of approx. 11 per cent of industrial post, and delivers good results. Today the company has around 1,100 employees and distributes approximately 250 million items of post each year. Norway Post purchased 57 per cent of the company CityMail Sweden in 2002, with an option to acquire the remaining 43 per cent of shares in the first quarter of 2006.

For further information from Norway Post, please contact:
– Elisabeth H. Gjølme, Senior Vice President Information, phone: +47 901 40 449,
– Eva Bratholm, Press Officer, phone: +47 970 02 468
www.citymaildenmark.dk