Proposed Determination

RNS Number:2311L
Business Post Group PLC
19 May 2003







BUSINESS POST WELCOMES PROPOSED POSTCOMM DETERMINATION

OF ACCESS TERMS FOR ITS PROPOSED BUSINESS MAIL SERVICE


Business Post Group PLC (BPG.L) welcomes today's announcement by Postcomm, the
independent postal industry regulator, permitting UK Mail Limited, Business
Post's subsidiary, access to Royal Mail's postal facilities on specified terms,
subject to public consultation over the next three months.


In particular, UK Mail believes that the proposed final delivery charge of
11.88p for items of under 60 g - covering the vast majority of letter mail -
transported to the Royal Mail Delivery Office represents a feasible basis for
its proposed service. Called Business Class, this will offer a time definite two
day delivery, with increased flexibility of collection and track-and-trace.


Paul Carvell, Business Post's Chief Executive, said "UK Mail has been asked to
pay rather more than we had hoped. However, after 18 months since UK Mail was
granted its interim licence, we are keen to get on with the launch of our new
service which has stimulated a lot of interest among many large business
customers."


Peter Kane, Business Post's Chairman, added "Considering that the UK business
mail market is growing by 3% per annum and independent operators are likely to
have a total market share of under 10% after three years, I hope that the Royal
Mail will now recognise that we are all potentially in a triple win situation -
with customers, independent operators and the Royal Mail all benefiting."


Notes for Editors:


In November 2001, UK Mail was granted an interim licence by Postcomm to collect
mail from business customers and, after sorting and distribution, to pass the
mail to Royal Mail for final delivery.


In April 2002, UK Mail asked Postcomm to make a determination under the Postal
Services Act of the terms and conditions for its handing over the mail to Royal
Mail for final delivery, following failure to reach agreement.


In May 2002, Postcomm published its decision to approach Market Opening in three
phases: January 2003 - March 2005: about 30% of the market open for licences;
April 2005- March 2007: about 60% of the market open for licences; and April
2007: no restriction.


On 30 April 2003, Postcomm announced that it was minded to grant a long term
licence to UK Mail, subject to one month's consultation.


Postcomm's proposed tariff additionally includes, for items of under 60 g,
13.01p for items transported to the Royal Mail Inward Mail Centre (without
sorting to the Delivery Office) and 11.46p (with sorting to the Delivery
Office).



Enquiries:
Business Post Group plc
Bill Cockburn (Deputy Chairman)                                  (today only)
                                                                 020-7444 4166
Paul Carvell (Chief Executive)                                   (today only)
                                                                 020-7444 4166
Peter Fitzwilliam (Finance Director)                             01753-706 070

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166










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