TNT Logistics North America to operate distribution centres for Michelin in United States and Canada

Michelin North America has signed a six-year, multi-million dollar agreement with TNT Logistics North America under which TNT will operate Michelin's network of tire distribution centers in the United States and Canada. The agreement builds on a successful relationship that began in 1995 with TNT Logistics delivering value-added logistics services to Michelin Group's operations in the United Kingdom.

TNT is expected to begin operation during the week of Aug. 5, 2002, of Michelin North America's network of approximately 7-million sq. ft. of distribution centers in 18 locations in the United States and Canada. Michelin North America's distribution in Mexico is already outsourced to different providers.

"This agreement is a continuation of our strategic efforts to reduce operational costs while further improving services to our customers," said Jim Micali, chairman and president, Michelin North America, Inc. "Through this agreement, we will be better able to focus on our core tire business by having TNT provide its world-class logistics services to us."

In order to be more cost competitive, Michelin North America had announced on Sept. 10, 2001, that it would both reduce its annual operating costs by $200 million and eliminate 2,000 positions by the end of 2003. The expected financial benefits from the TNT agreement were not part of the Sept. 10 announcement.

"This agreement is the result of hard work and a commitment between the companies to realize the significant benefits that will accrue to each party as a result of this unique endeavor," said Dave Kulik, president and CEO of TNT Logistics North America, whose division will manage the distribution network. "The size and scope of this agreement exceeds the largest contract TNT Logistics North America has to date, outside of our automotive business unit. It is also an important opportunity for Michelin to improve efficiencies across its network by outsourcing to an organization who has proven expertise in supply chain management."

The agreement calls for TNT Logistics to acquire certain operating assets and offer employment to qualified Michelin distribution network employees in the United States (450 employees) and Canada (150 employees). TNT also will invest in some new operational tools as well as a new suite of information technology over the period of the contract to deliver streamlined processes and enhanced customer service. While specific financial terms of the agreement were not disclosed, Michelin indicated that it could realize a capital gain of about $26 million on the sale of certain distribution centers to a joint venture managed by Lexington Corporate Properties Trust.

"TNT Logistics is pleased to win this substantial contract to deliver supply chain management expertise to further improve Michelin's distribution network in the United States and Canada," said Roberto Rossi, Group Managing Director, TNT Logistics. "This relationship with a leading company further drives our operations in this vital sector and increases our existing strong presence in North America."

About Michelin North America – Michelin manufactures and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, motorcycles and the space shuttle. The company also publishes travel guides, maps and atlases covering Europe, Asia, Africa and North America. Headquartered in Greenville, S.C., Michelin North America (http://www.michelin.com) employs 26,500 and operates 23 plants in 19 locations.

About TPG N.V. and TNT Logistics North America – TPG N.V. with its two brands TNT and Royal TPG Post, is a global provider of mail, express and logistics services. It employs over 141,000 people in 59 countries and serves over 200 countries. The company reported sales of EUR 11.2 billion in 2001. TPG N.V. is publicly listed on the stock exchanges of Amsterdam, New York, London and Frankfurt. The TPG website address is: http://www.tpg.com.

TNT Logistics, a division of TPG, employs more than 31,000 people who operate in 35 countries managing over 5.2 million m2 of warehouse space. In 2001, TNT Logistics reported sales of EUR 3.1 billion. The TNT Logistics website address is: http://www.tnt.com/logistics.

TNT Logistics North America is recognised as one of the world's leading providers of customised, value-added logistics solutions to Fortune 500 companies in the automotive, tyre, retail, electronics, utilities, telecom, fast-moving consumer goods, heavy machinery and rail industries. Headquartered in Jacksonville, Florida, TNT Logistics North America manages over 208 operations in the United States, Canada and Mexico and offers global reach through TNT Logistics. Based in Jacksonville, Florida, TNT Logistics North America can be reached at 904-928-1400 or on the Web at http:/ /www.tntlogistics.com.