Royal Mail Heads of Terms

RNS Number:3454T
Business Post Group PLC
17 December 2003



                            BUSINESS POST GROUP PLC


                UK Mail signs Heads of Terms with the Royal Mail


Business Post, the fast-growing express delivery company, is pleased to announce
that its subsidiary, UK Mail Ltd, has signed Heads of Terms with the Royal Mail
for access to Royal Mail's local sorting and final delivery network.


The terms envisaged, which are confidential, are in a similar format to those of
the proposed determination of 19 May 2003 by Postcomm, the independent postal
industry regulator.


Detailed terms remain subject to contract, which it is intended will be signed
in January 2004.


Having regard to the signature of the Heads of Terms, Postcomm will be putting
on hold its revised proposed determination.


Paul Carvell, Business Post's Chief Executive, who was signatory to the Heads of
Terms together with Adam Crozier, Chief Executive of the Royal Mail, stated, "We
welcome the prospect of an amicable agreement with the Royal Mail, which will be
providing an integral part of UK Mail's service, leveraging off the great
strength of its local delivery network."


Notes for Editors:


UK Mail was granted a licence for business mail by Postcomm in November 2001.
After inconclusive negotiations with the Royal Mail, in April 2002 UK Mail asked
Postcomm to determine a tariff for access to the Royal Mail's local sorting and
final delivery network. The first proposed determination was received in May
2003 and Postcomm's revised proposed determination was expected before Christmas
2003.


Postcomm's licence allows UK Mail to collect mail from business customers and
undertake the initial sorting and trunking, before delivery to the relevant
Royal Mail delivery location, for local sorting and final delivery.

Enquiries:

Business Post Group plc
Paul Carvell (Chief Executive)                                   0121-335 1111
Guy Buswell (Managing Director, UK Mail)                         0121-335 1111
Peter Fitzwilliam (Finance Director)                             01753-706 070
[e-mail]

Bankside Consultants Limited
Charles Ponsonby (PR)                                            020-7444 4166




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