FRANCOTYP-POSTALIA PLANS TO SAFEGUARD ITS BIRKENWERDER SITE FOR LONG-TERM

The German subsidiaries of Francotyp-Postalia Holding AG - Francotyp-Postalia GmbH and Francotyp-Postalia Vertrieb und Service GmbH - are informing the economic committee today about a concept that will safeguard the Birkenwerder site near Berlin on a sustainable basis. In connection with plans to start production of the new Phoenix line in 2011, the companies are planning wide-ranging restructuring of their production activities. Under consideration are the partial closure of various areas of production and other restructuring activities.

These measures are necessary in order to ensure that production conditions at Birkenwerder match up to other locations considered in Asia, Europe or the USA on a sustainable basis. An in-depth analysis has shown that the company could produce considerably cheaper in Asia, Europe or even in the USA than is currently the case at Birkenwerder. The FP Group expects savings over three million euros per year from the proposed measures and sees the concept as a means of cementing the successes already achieved from its site continuation agreement, which runs until August 2011.

Implementation in close consultation with employee representatives

Francotyp-Postalia wishes to implement all measures in close consultation with its economic committee, works council, trade union representatives and those employees affected over the coming months. The measures are decisive in order to further safeguard the site and strengthen the financial and earnings power of the whole FP Group on a sustained basis. As member of the FP Management Board Hans Szymanski explained: "We see the concept presented as a means to create the basis for the long-term safeguarding of the Birkenwerder site. Thanks to many other measures and the site continuation agreement, the FP Group has done well in the market in what is a difficult business environment. But we have always emphasized that further steps might be necessary in order to safeguard the future of our company in Germany."