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Singapore Airport Terminal Services Limited (SATS)

9 May 2000

DHL & SATS break new ground in Singapore

DHL Singapore hub to be located in Singapore Airport Terminal
Services' (SATS) purpose-built facility

SINGAPORE, 9 May 2000 - DHL Worldwide Express, the world's leading international air express service, today marked the location for its new US$34 million hub facility at Singapore Changi International Airport with a ground breaking ceremony graced by Guest-of-Honour Mr. Lim Swee Say, Minister of State (Trade & Industry and Communications & Information Technology).

The new DHL Singapore hub will be located at Singapore Airport Terminal Services' (SATS) Express Courier Centre 2 (ECC2). The S$30 million ECC2 will be purpose-built by SATS to suit DHL's specific needs.

DHL is the first air express company to have a purpose-built facility in the Singapore Changi Airport free trade zone. ECC2 is scheduled for completion in the 3rd quarter of 2001. Under a long-term lease agreement inked in July 1999 between DHL and SATS, the DHL hub facility will occupy 10,000 sqm of the 14,000 sqm total floor space.

In recognition of DHL's investment and strong commitment to grow its regional responsibilities from Singapore, the Economic Development Board has awarded Operational Headquarters (OHQ) status to DHL. The OHQ award was presented to Charles Longley, Chief Executive Officer for DHL Asia-Pacific/Middle East by Mr. Lim Swee Say during today's ground-breaking event.

"The establishment of DHL's sortation hub is an important milestone for Singapore. It will be the largest Regional Air Express Hub in Singapore, and will greatly enhance our position as an integrated logistics and e-commerce hub in Asia. DHL's hub will also complement our push into the digital economy so that both internet ordering and physical movement of goods can be done from Singapore," said Mr. Lim.

Charles Longley commented: "The new DHL Singapore hub comes after much consideration into the most suitable location for our next big investment. DHL is respected for its standards and reliability and we hope the new facility will further enhance our service between South East Asia, the Middle East and Europe."

Chief Executive Officer, SATS, Prush Nadaisan congratulated DHL on receiving the OHQ award. "In many ways SATS and DHL are natural partners. Both companies are leaders in their respective fields and both are renowned for their standards of customer service. The new ECC2 will not only be good for customers, it will further enhance Changi's position as the region's leading air cargo hub. We, at SATS, hope this ground-breaking ceremony marks the beginning of a long and prosperous close-working relationship with DHL," Mr. Nadaisan said.

The new hub facility will consolidate DHL's inbound, outbound and airport operations under one roof. The latest technology available in the industry, including radio frequency scanners and on-line EDI linkage with the Customs & Excise Department and Trade Development Board, will enable in-flight pre-clearance of shipments. The hub will also feature sophisticated shipment management and materials handling systems, which are designed to service customers more efficiently.

As the hub is located in the free trade zone, international shipments transiting Singapore are not subjected to customs formalities. This will be of significant benefit to customers in the region and beyond who have come to expect a speedy and highly effective standard of operation.

About Singapore Airport Terminal Services Group (SATS)

Singapore Airport Terminal Services Group (SATS) is the leading provider of integrated ground handling and inflight catering services at Singapore Changi Airport. In the Asia Pacific region, SATS also offers a wide range of ground handling and catering services via 11 joint ventures in nine other international airports. SATS' services include airfreight and baggage handling, inflight catering, aviation security, airline laundry, passenger services and ramp handling.

For more information, please contact:

Carolynn Leow

Singapore Airport Terminal Services Ltd

Tel: (65) 541 8140

Fax: (65) 543 2063

Email: carolynn_leow@singaporeair.com.sg


About DHL Worldwide Express

DHL Worldwide Express is the world's leading air express service, linking more than 85,000 destinations in 228 countries and territories. DHL has a fleet of over 250 aircraft. In Asia-Pacific/Middle East, DHL serves 51 countries and territories, operates about 900 stations, employs more than 17,500 personnel and owns more than 4,000 transport vehicles. DHL Worldwide Express has a 40% market share of international express traffic as reported by the Air Cargo Management Group, Washington, USA.

In 1998, DHL Worldwide Express was named the "World's Most Global Company" by Global Finance magazine for its excellence in global reach, vision and management strategies. DHL has been named "Best Express Service" for the past 14 consecutive years at the Asian Freight Industry Awards and for the past six years has been voted as one of Asia's Leading Companies in Far Eastern Economic Review's Review 200 survey.

The DHL Worldwide Express network is composed of DHL International Limited, its subsidiaries and affiliates, which serve all locations outside the US and its territories; and DHL Airways, Inc., its subsidiaries and affiliates which serve all locations in the US and its territories.

Visit DHL on-line at http://www.dhl.com

For more information, please contact:

June Ong / Bock Chak Peng

DHL international Singapore Pte Ltd

Tel: (65) 380 5625

Fax: (65) 288 6855


Source: Singapore Airport Terminal Services Limited (SATS)
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