Deutsche Bahn acquires US logistics company BAX Global

Deutsche Bahn AG signed a purchase contract in New York to acquire a 100 percent shareholding in BAX Global Inc. on Nov. 16.

This will allow Deutsche Bahn to significantly expand its position as an international logistics services provider in the key growth markets in the Asia/Pacific region, and also in China and the USA.

DB's Chairman and CEO Hartmut Mehdorn: ?AX fits our strategy perfectly and is an ideal complement to our logistics subsidiary Schenker. With these two companies, DB AG is now one of the leading companies in the transportation and logistics sector.?BAX Global offers worldwide air and sea freight forwarding services, domestic transportation services and supply chain management, and has a strong blue-chip customer base, primarily in the fields of electronics and consumer goods.

In the first three quarters of 2005, BAX generated revenues of USD 2.04 billion with over 12,000 employees. In the comparative period of the previous year, the figure had been USD 1.75 billion. The operating income in this nine-month period rose to USD 47.2 million from USD 30.1 million in the previous year.

BAX Global is one of the top 20 US logistics companies. BAX Global is the Number 1 in the USA in the heavy general cargo business. Worldwide, BAX maintains more than 500

offices in over 130 countries. DB Logistics, the Transportation and Logistics Division of Deutsche Bahn AG, will increase its business volume as a result of the acquisition of BAX (revenues in 2004: approx. USD 2.4 billion) to just under EUR 15 billion.

At the same time, its level of internationalization will further increase. ?n combination with our Business Unit Schenker, BAX will allow us to take a significant step forward. This means we will increase the Group's earnings power and secure jobs in Germany and Europe,?said Dr. Norbert Bensel, the Member of the Board of Management responsible for DB Logistics at Deutsche Bahn AG, commenting on the acquisition.