Francotyp-Postalia Holding AG: Deutsche Post AG will negotiate new cooperation treaty

With the view to summarize the individual contracts into one cooperation treaty Deutsche Post AG cancelled the existing manufacturer contracts with Francotyp-Postalia GmbH and Francotyp-Postalia Vertrieb und Service GmbH.

In the sense of a strategic partnership the negotiations should be lead by the idea of cooperation as for example in connexion with bilateral marketing or communication measures. The cancellation was received on June 26, 2007 by both companies.

All existing approvals, rights of sales and charging standards for the up-to-date franking machines are not touched by the cancellation. This means that the cancellation will have no effect on models already authorised or approved by Deutsche Post.

Deutsche Post AG has, according to Francotyp-Postalia Holding AG information, cancelled existing contracts with all franking machines manufacturers in Germany with effect from 31 December 2007.

Negotiations are already in hand with a view to strengthening the relationship between Francotyp-Postalia and Deutsche Post. The target is to establish a strategic partnership between the two companies which would be mutually beneficial in the medium to longer term in light of the forthcoming deregulation of the German postal market.

‘A new cooperation contract offers the possibility of intensifying customer retention in the field of franking machines.’ declares Hartmut Neumann, CEO of Francotyp-Postalia Holding AG.

‘A future partnership with Deutsche Post AG enables us to set up new attractive offers for franking machines and enter new potential markets in the lower segment.’

The cancellation will have no effect on models already authorised or approved by Deutsche Post and the renegotiated contracts will apply only to new models which Francotyp may develop and bring to the market after 31 December 2007.

Through cooperation with Deutsche Post AG the Francotyp-Postalia expects to see further growth in the coming years.